ANGLO AMERICAN PLC (LON:AAL) Anglo American Q1 2018 Production Report

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24/04/2018 07:00
Anglo American PLC  -  AAL   

Anglo American Q1 2018 Production Report

Released 07:00 24-Apr-2018
 

 

Anglo American plc

Production Report for the first quarter ended 31 March 2018

 

Anglo American reports a 4% increase in total production on a copper equivalent basis in the first quarter of 2018, compared to the same period of 2017(1).

 

Mark Cutifani, Chief Executive of Anglo American, said: "Our operations have made a solid start to 2018, delivering a 4% increase in total production. This reflects our consistent focus on driving efficiency across our portfolio and continuing our strong performance of Q4 2017 despite the suspension of operations at Minas-Rio."

 

Highlights

·     De Beers production increased by 15% reflecting a ramp-up in production in response to sustained healthy trading conditions and the inclusion of production from Gahcho Kué.

·     Copper production increased by 9% to 154,900 tonnes with strong operational performance and higher grade at Los Bronces and improved plant performance at Collahuasi.

·     Platinum production increased by 7% and palladium by 9% due to improved operational performances across the portfolio. The sale of Union mine was completed on 1 February 2018.

·     Kumba Iron Ore production increased by 4% to 10.9 million tonnes driven by improved productivity at Kolomela.

·     Minas-Rio production decreased by 30% to 3.0 million tonnes primarily as a result of the suspension of the operation following a leak in the pipeline that carries iron ore slurry from the mine to the port.

·     Metallurgical coal production increased by 6% due to performance improvements at Moranbah and the continued ramp-up of Grosvenor.

 

Production Summary

 

 

Q1 2018

Q1 2017

% vs. Q1 2017

Diamonds (Mct)(2)

8.5

7.4

15%

Copper (kt)(3)

155

143

9%

Platinum (koz)(4)

614

572

7%

Palladium (koz)(4)

407

373

9%

Iron ore - Kumba (Mt)

10.9

10.5

4%

Iron ore - Minas-Rio (Mt)(5)

3.0

4.3

(30)%

Metallurgical coal (Mt)

5.5

5.2

6%

Thermal coal (Mt)(6)

6.8

7.5

(10)%

Nickel (kt)(7)

8.6

9.9

(13)%

Manganese ore (kt)

881

823

7%

 

(1)     Copper equivalent production is normalised for Bokoni being placed on care and maintenance in 2017.

(2)     De Beers production is on a 100% basis, except for the Gahcho Kué joint venture which is on an attributable 51% basis.

(3)     Contained metal basis. Reflects copper production from the Copper business unit only (excludes copper production from the Platinum business unit).

(4)     Produced ounces. Reflects own mine production and purchases of metal in concentrate.

(5)     Wet basis.

(6)     Reflects export production from South Africa and Colombia.

(7)     Reflects nickel production from the Nickel business unit only (excludes nickel production from the Platinum business unit).

 

 

DE BEERS

 

De Beers(1)

Q1

2018

Q1

2017

Q1 2018

vs.

Q1 2017

Q4

2017

Q1 2018

vs.

Q4 2017

Botswana (Debswana)

000 carats

5,808

           5,191

12%

5,504

6%

Namibia (Namdeb Holdings)

000 carats

528

              472

12%

488

8%

South Africa (DBCM)

000 carats

1,093

           1,106

(1)%

1,149

(5)%

Canada

000 carats

1,069

              631

69%

993

8%

Total carats recovered

000 carats

8,498

           7,400

15%

8,134

4%

 

Rough diamond production increased by 15% to 8.5 million carats reflecting the ramp-up of production from Gahcho Kué in Canada, which reached nameplate capacity in Q2 2017, and increased production from Orapa in Botswana (Debswana) in response to the sustained healthy trading conditions.

 

Botswana (Debswana) production increased by 12% to 5.8 million carats. Orapa(2) production increased by 26% to 2.8 million carats mainly due to an increase in tonnes treated in response to sustained healthy trading conditions.

 

Namibia (Namdeb Holdings) production increased by 12% to 0.5 million carats as a result of accessing consistently higher grades at the land based operations.

 

South Africa (DBCM) production was in line with Q1 2017 at 1.1 million carats.

 

Canada production increased by 69% to 1.1 million carats due to the ramp-up of Gahcho Kué, which reached nameplate capacity in Q2 2017.

 

Total rough diamond sales volumes in Q1 2018 were 8.8 million carats (8.4 million carats on a consolidated basis(3)) from two Sights, compared with 14.1 million carats (13.7 million carats on a consolidated basis(3)) from three Sights in Q1 2017. In addition to the difference in the number of Sights over the period, Sight 1 2017 also saw an unusually strong demand for lower value goods following the effects of Indian demonetisation in Q4 2016, leading to higher than normal sales volume.

 

Full Year Guidance

 

Full year production guidance(1) remains unchanged at 34-36 million carats, subject to trading conditions.

 

 

 

(1)     De Beers production is on a 100% basis, except for the Gahcho Kué joint venture which is on an attributable 51% basis.

(2)     Orapa constitutes the Orapa Regime which includes Orapa, Letlhakane and Damtshaa.

(3)    Consolidated sales volumes exclude De Beers' JV partners' 50% proportionate share of sales to entities outside De Beers from the Diamond Trading Company Botswana and the Namibia Diamond Trading Company, which are included in total sales volume (100% basis). Both measures in Q1 2017 include pre-commercial production sales volumes from Gahcho Kué. Q1 2017 consolidated sales volumes excluding pre-commercial production sales volumes from Gahcho Kué were 13.4 million carats. 

 

 

 

De Beers

Q1 2018

Q4 2017

Q3 2017

Q2 2017

Q1 2017

Q1 2018

vs.

Q1 2017

Q1 2018

vs.

Q4 2017

Carats recovered (000 carats)

 

 

 

 

 

 

 

100% basis (unless otherwise stated)

 

 

 

 

 

 

 

Jwaneng

2,984

2,512

3,477

2,913

2,955

1%

19%

Orapa Regime(1)

2,824

2,992

2,579

3,020

2,236

26%

(6)%

Botswana (Debswana)

5,808

5,504

6,056

5,933

         5,191

12%

6%

 

 

 

 

 

 

 

 

Debmarine Namibia

365

328

353

319

378

(3)%

11%

Namdeb (land operations)

163

160

101

72

94

73%

2%

Namibia (Namdeb Holdings)

528

488

454

391

          472

12%

8%

 

 

 

 

 

 

 

 

Venetia

1,008

1,023

1,401

1,239

939

7%

(1)%

Voorspoed

85

126

147

166

167

(49)%

(33)%

South Africa (DBCM)

1,093

1,149

1,548

1,405

          1,106

(1)%

(5)%

 

 

 

 

 

 

 

 

Gahcho Kué (51% basis)

838

830

930

831

442

90%

1%

Victor

231

163

190

182

189

22%

42%

Canada

1,069

993

1,120

1,013

631

69%

8%

Total carats recovered

8,498

8,134

9,178

  8,742

7,400

15%

4%

Sales volumes

 

 

 

 

 

 

 

Total sales volume (100%) (Mct)(2)

8.8

8.2

6.9

5.9

14.1

(38)%

7%

Consolidated sales volume (Mct)(2)

8.4

7.5

6.5

5.4

13.7

(39)%

12%

Number of Sights
(sales cycles)

2

3

2

2

3

 

 

 

 

(1)     Orapa Regime includes Orapa, Letlhakane and Damtshaa.

(2)     Consolidated sales volumes exclude De Beers' JV partners' 50% proportionate share of sales to entities outside De Beers from Diamond Trading Company Botswana and the Namibia Diamond Trading Company, which are included in total sales volume (100% basis). Both measures in Q1 2017 include pre-commercial production sales volumes from Gahcho Kué. Q1 2017 consolidated sales volumes excluding pre-commercial production sales volumes from Gahcho Kué were 13.4 million carats. 

 

 

 

 

COPPER

 

Copper(1)

Q1

2018

Q1

2017

Q1 2018

vs.

Q1 2017

Q4

2017

Q1 2018

vs.

Q4 2017

Los Bronces

t

85,000

75,800

12%

75,400

13%

Collahuasi (44% share)

t

60,600

57,700

5%

63,500

(5)%

El Soldado

t

9,300

9,100

2%

9,700

(4)%

Total Copper

t

154,900

142,600

9%

148,600

4%

 

(1)     Copper production shown on a contained metal basis.

 

Production increased to 154,900 tonnes with strong operational performances at both Los Bronces and Collahuasi.

 

Production from Los Bronces increased by 12% to 85,000 tonnes due to a combination of strong mine and plant performance and an increase in ore grade (0.71% vs. 0.69%).

 

At Collahuasi attributable production increased by 5% to 60,600 tonnes, underpinned by initiatives to improve plant performance. The planned three month major maintenance of Line 3 (responsible for around 60% of plant throughput), to replace the stator motor on one of the two ball mills, started on 12 March.

 

El Soldado production increased by 2% to 9,300 tonnes.

 

Full Year Guidance

Full year production guidance remains unchanged at 630,000 - 660,000 tonnes.

 

 

Copper(1)

Q1 2018

Q4 2017

Q3 2017

Q2 2017

Q1 2017

Q1 2018

vs.

Q1 2017

Q1 2018

vs.

Q4 2017

Collahuasi 100% basis

(Anglo American share 44%)

 

 

 

 

 

 

 

Ore mined

11,859,300

17,478,300

18,467,800

14,984,100

13,803,300

(14)%

(32)%

Ore processed - Sulphide

12,894,200

13,658,400

13,084,900

10,807,100

12,336,400

5%

(6)%

Ore grade processed - Sulphide (% TCu)(2)

1.24

1.28

1.24

1.27

1.24

0%

(3)%

Production - Copper cathode

 -

 -

-

 -

100

(100)%

-

Production - Copper in concentrate

137,600

144,400

132,600

115,900

131,000

5%

(5)%

Total copper production for Collahuasi

137,600

144,400

132,600

115,900

131,100

5%

(5)%

Anglo American's share of copper production for Collahuasi(3)

60,600

63,500

58,300

51,000

57,700

5%

(5)%

Los Bronces(4)

85,000

75,400

78,100

79,000

75,800

12%

13%

Ore mined

15,675,300

11,553,900

12,707,100

11,630,200

13,448,400

17%

36%

Ore processed - Sulphide

12,477,100

10,610,600

11,675,700

11,876,300

11,877,400

5%

18%

Ore grade processed - Sulphide (% TCu)

0.71

0.76

0.69

0.70

0.69

3%

(7)%

Production - Copper cathode

8,500

9,800

9,800

9,800

8,900

(4)%

(13)%

Production - Copper in concentrate

76,600

65,600

68,300

69,200

66,900

14%

16%

El Soldado(4)

9,300

9,700

10,900

10,800

9,100

2%

(4)%

Ore mined

2,112,500

1,698,500

1,462,200

1,272,200

905,500

133%

24%

Ore processed - Sulphide

1,785,600

1,846,600

1,851,700

1,899,200

1,797,600

(1)%

(3)%

Ore grade processed - Sulphide (% TCu)

0.67

0.65

0.73

0.72

0.65

3%

3%

Production - Copper in concentrate

9,300

9,700

10,900

10,800

9,100

2%

(4)%

Chagres Smelter(4)

 

 

 

 

 

 

 

Ore smelted

34,700

35,600

35,400

31,500

31,300

11%

(3)%

Production

33,800

34,700

34,400

30,600

30,300

12%

(3)%

Total copper production(5)

154,900

148,600

147,300

140,800

142,600

9%

4%

Total payable copper production

149,100

143,100

141,900

135,800

137,500

8%

4%

Total sales volumes

131,600

156,400

163,900

144,100

115,300

14%

(16)%

Total payable sales volumes

126,700

150,600

158,000

138,900

111,200

14%

(16)%

Third party sales(6)

30,800

40,500

33,700

27,400

9,800

214%

(24)%

 

 

(1)     Excludes Anglo American Platinum's copper production.

(2)     TCu = total copper.

(3)     Anglo American's share of Collahuasi production is 44%.

(4)     Anglo American ownership interest of Anglo American Sur is 50.1%. Production is stated at 100% as Anglo American consolidates Anglo American Sur.

(5)     Total copper production includes Anglo American's 44% interest in Collahuasi.

(6)     Relates to sales of copper not produced by Anglo American operations.

 

 

 

PLATINUM

 

 

 

Q1
2018

Q1

2017

Q1 2018

vs.

Q1 2017

Q4

2017

Q1 2018

vs.

Q4 2017

Platinum

 

 

 

 

 

 

Produced M&C ounces

000 oz

613.8

572.0

7%

587.0

5%

Own mined(1)

000 oz

343.0

322.7

6%

349.8

(2)%

Purchase of concentrate(2)

 

000 oz

270.8

249.3

9%

237.2

14%

Palladium

 

 

 

 

 

Produced M&C ounces

000 oz

407.4

372.7

9%

374.9

9%

Own mined(1)

000 oz

267.7

239.3

12%

251.5

6%

Purchase of concentrate(2)

 

000 oz

139.7

133.4

5%

123.4

13%

Refined production

 

 

 

 

 

 

Platinum

000 oz

502.6

576.9

(13)%

722.2

(30)%

Palladium

000 oz

319.8

353.4

(10)%

491.4

(35)%

Rhodium

000 oz

62.5

73.7

(15)%

87.4

(28)%

Gold

000 oz

22.9

24.7

(7)%

30.3

(24)%

Nickel

t

5,100

5,100

0%

7,800

(35)%

Copper

t

3,200

3,200

0%

4,700

(32)%

                     

 

(1)     Includes managed operations and 50% of joint venture production.

(2)     Purchase of concentrate includes 50% of joint venture production, and the purchase of concentrate from associates (Bokoni and BRPM) and third parties.

 

 

Platinum production increased by 7% to 613,800 ounces and palladium production increased by 9% to 407,400 ounces, due to improved operational performances across the portfolio.

 

Own mined production

 

Own mined platinum production increased by 6% to 343,000 ounces and palladium production increased by 12% to 267,700 ounces, due to a strong operational performance from Mogalakwena, supported by increases at all other operations, and despite the sale of Union mine.

Mogalakwena platinum production increased by 25% to 139,400 ounces and palladium production increased by 22% to 150,500 ounces. The increases were as a result of continued strong performance with higher concentrator throughput and recoveries, and better than expected grade.

 

Amandelbult had a stronger start to the year with platinum production increasing by 9% to 103,900 ounces and palladium production increasing by 16% to 50,700 ounces. The increases were as a result of continuing efficiency improvement and therefore fewer stoppages.

 

Unki platinum production increased by 9% to 20,600 ounces and palladium production by 9% to 17,800 ounces due to increased concentrator throughput, higher grade and increased concentrator recoveries.

 

Union mine was sold to Siyanda Resources on 1 February 2018, after which Union production was treated as third party purchase of concentrate and, as a result, mined platinum production decreased by 69% to 11,600 ounces and mined palladium production reduced by 70% to 5,200 ounces.

 

Joint venture platinum production from the three operations (Mototolo, Modikwa and Kroondal) increased by 14% to 135,000 ounces (of which 67,500 ounces is own mined production and 67,500 ounces is purchased concentrate). Palladium production also increased by 14% to 86,900 ounces (of which 43,500 ounces is own mined production and 43,500 ounces is purchased concentrate). This was driven by a strong production performance across the portfolio supplemented by additional processing of ore stockpiles built up at Mototolo following the temporary closure of the concentrator in Q3 2017.

 

 

 

Purchase of concentrate

 

Purchase of concentrate from joint ventures increased by 14% for both platinum and palladium due to increased production as outlined above.

 

Purchase of concentrate from associates decreased by 19% for platinum and 34% for palladium due to the removal of unprofitable ounces from Bokoni which was placed on care and maintenance in Q3 2017.

 

Purchase of concentrate from third parties increased by 20% for both platinum and palladium due to production purchased from Union mine following the sale to a subsidiary of Siyanda Resources.

 

Refined production and sales volumes

 

Refined platinum production decreased by 13% to 502,600 ounces and refined palladium production decreased by 10% to 319,800 ounces, primarily due to a Section 54 stoppage affecting the smelters in December 2017, following a fatal incident, which constrained refined production into January 2018. In addition, planned scheduled maintenance caused downtime of 16 days in Q1 2018. In Q1 2017, refined volumes were unusually high due to the recovery from the Waterval Smelter run-out in 2016.

 

Platinum sales volumes decreased by 4% to 500,500 ounces, in line with refined production, while palladium sales volumes increased by 10% to 336,200 ounces as refined palladium inventory was sold down to normal levels.

 

Full Year Guidance

 

Full year production guidance remains at 2.3 - 2.4 million ounces of platinum and 1.5 - 1.6 million ounces of palladium. 

 

 

Platinum

Q1 2018

Q4 2017

Q3 2017

Q2 2017

Q1 2017

Q1 2018

vs.

Q1 2017

Q1 2018

vs.

Q4 2017

613.8

587.0

621.4

617.1

572.0

7%

5%

Owned mined

343.0

349.8

357.7

346.1

322.7

6%

(2)%

Mogalakwena

139.4

121.7

116.3

113.9

111.9

25%

15%

Amandelbult

103.9

114.8

119.5

108.6

95.1

9%

(9)%

Unki

20.6

16.4

19.9

19.5

18.9

9%

26%

Joint ventures(1)

67.5

59.8

62.2

64.3

59.0

14%

13%

Union

11.6

37.1

39.9

39.8

37.7

(69)%

(69)%

Purchase of concentrate

270.8

237.2

263.7

271.0

249.3

9%

14%

Joint ventures(1)

67.5

59.8

62.2

64.3

59.0

14%

13%

Associates(2)

52.3

54.8

73.5

72.5

64.7

(19)%

(5)%

Third parties

151.0

122.6

128.0

134.2

125.6

20%

23%

Palladium

 

 

 

 

 

 

 

Produced palladium (000 troy oz)

407.4

374.9

407.5

402.2

372.7

9%

9%

Owned mined

267.7

251.5

262.7

255.1

239.4

12%

6%

Mogalakwena

150.5

127.8

129.9

127.8

123.4

22%

18%

Amandelbult

50.7

53.7

55.1

49.9

43.7

16%

(6)%

Unki

17.8

14.2

17.2

16.6

16.4

9%

25%

Joint ventures(1)

43.5

38.7

42.1

42.5

38.2

14%

12%

Union

5.2

17.1

18.4

18.3

17.6

(70)%

(70)%

Purchase of concentrate

139.7

123.4

144.8

147.1

133.4

5%

13%

Joint ventures(1)

43.5

38.7

42.1

42.5

38.2

14%

12%

Associates(2)

21.7

22.1

36.3

36.4

33.0

(34)%

(2)%

Third parties

74.5

62.6

66.4

68.1

62.2

20%

19%

Refined production

 

 

 

 

 

 

 

Platinum (000 troy oz)

502.6

722.2

684.1

528.7

576.9

(13)%

(30)%

Palladium (000 troy oz)

319.8

491.4

450.6

373.1

353.4

(10)%

(35)%

Rhodium (000 troy oz)

62.5

87.4

79.4

82.8

73.7

(15)%

(28)%

Gold (000 troy oz)

22.9

30.3

31.1

29.3

24.7

(7)%

(24)%

Nickel (tonnes)

5,100

7,800

7,000

6,000

5,100

0%

(35)%

Copper (tonnes)

3,200

4,700

4,300

3,500

3,200

0%

(32)%

4E Head grade (g/tonne milled)(3)

3.45

3.53

3.44

3.41

3.47

(1)%

(2)%

 

 

 

 

 

 

 

 

Platinum sales volumes - own mined and purchase of concentrate (000 oz)

500.5

721.7

663.6

600.5

518.8

(4)%

(31)%

 

 

 

 

 

 

 

 

Palladium sales volumes - own mined and purchase of concentrate (000 oz)

336.2

473.5

462.0

330.3

306.0

10%

(29)%

 

(1)     The joint venture operations are Mototolo, Modikwa and Kroondal. Platinum owns 50% of these operations, which is presented under 'Own mined' production, and purchases the remaining 50% of production, which is presented under 'Purchase of concentrate'.

(2)     Associates are Platinum's 33% interest in BRPM and, also in 2017, its 49% interest in Bokoni, which was placed on care and maintenance in Q4 2017.

(3)     4E: the grade measured as the combined content of: platinum, palladium, rhodium and gold.

 

 

IRON ORE

 

Iron Ore

Q1

2018

Q1

2017

Q1 2018

vs.

Q1 2017

Q4

2017

Q1 2018

vs.

Q4 2017

Kumba

000 t

10,855

10,473

4%

11,643

(7)%

Minas-Rio(1)

000 t

3,049

4,342

(30)%

3,950

(23)%

 

(1)     Wet basis.

 

Kumba - Iron ore production increased by 4% to 10.9 million tonnes.

 

Sishen production decreased by 5% to 7.3 million tonnes. This was primarily driven by lower DMS plant production due to planned short-term mining feedstock constraints partially offset by higher yields from the JIG plant. Waste stripping increased by 24% to 42.2 million tonnes as a result of continued improvement in efficiencies.

 

Kolomela production increased by 26% to 3.5 million tonnes, driven by higher plant throughput and the full ramp-up of the DMS modular plant. Waste stripping increased by 32% to 13.4 million tonnes due to improved efficiencies. 

 

Export sales of 9.9 million tonnes were similar to Q1 2017. However, relative to Q4 2017, this was a 12% decrease as a result of a number of derailments impacting export sales by 1.1 million tonnes. Kumba is working closely with Transnet to mitigate derailments over the remainder of the year. Total finished product stock is 4.6 million tonnes, compared with 4.3 million tonnes at 31 December 2017.

 

Minas-Rio - Production from Minas-Rio decreased by 30% to 3.0 million tonnes, due to a combination of the planned progression into harder ore impacting plant throughput and the suspension of the operation from 12 March following the two leaks in the pipeline that carries iron ore, in slurry form, from the mine to the port. Operations remain suspended and no material production is expected for the remainder of the year, as inspection, remediation and restart activities are progressed.

 

Full Year Guidance

 

Full year production guidance for Kumba remains unchanged at 44 - 45 million tonnes. Full year waste guidance also remains unchanged at 170 - 180 million tonnes for Sishen and 55 - 57 million tonnes for Kolomela.

 

Full year production guidance for Minas-Rio has been revised down to 3 million tonnes reflecting production delivered to date (previously 13 - 15 million tonnes).

 

Iron Ore (tonnes)

Q1 2018

Q4 2017

Q3 2017

Q2 2017

Q1 2017

Q1 2018

vs.

Q1 2017

Q1 2018

vs.

Q4 2017

Kumba production

10,855,100

11,642,600

11,485,700

11,381,600

10,472,600

4%

(7)%

Lump

7,243,500

7,719,100

7,609,200

7,504,200

6,978,800

4%

(6)%

Fines

3,611,600

3,923,500

3,876,500

3,877,400

3,493,800

3%

(8)%

By mine:

 

 

 

 

 

 

 

Sishen

7,324,600

7,782,300

7,786,100

7,871,900

7,678,900

(5)%

(6)%

Kolomela

3,530,500

3,860,300

3,699,600

3,509,700

2,793,700

26%

(9)%

 

 

 

 

 

 

 

Export iron ore

9,945,700

11,354,800

10,783,200

9,423,600

10,053,000

(1)%

(12)%

Domestic iron ore

885,400

875,700

644,100

924,600

832,700

6%

1%

Minas-Rio production

 

 

 

 

 

 

 

Pellet feed (wet basis)

3,049,400

3,949,900

4,171,500

4,324,100

4,341,700

(30)%

(23)%

Minas-Rio sales volumes

 

 

 

 

 

 

 

Export - pellet feed (wet basis)

2,896,100

4,140,700

3,739,800

4,371,000

4,256,500

(32)%

(30)%

 

 

COAL

 

Coal

Q1

2018

Q1

2017

Q1 2018

vs.

Q1 2017

Q4

2017

Q1 2018

vs.

Q4 2017

Metallurgical Coal (Australia)

000 t

5,539

5,242

6%

4,924

12%

Export Thermal Coal (Australia)

000 t

209

479

(56)%

409

(49)%

Export Thermal Coal (South Africa)(1)

000 t

4,328

4,752

(9)%

4,648

(7)%

Export Thermal Coal (Colombia)

000 t

2,444

2,782

(12)%

2,914

(16)%

Domestic Thermal Coal (South Africa)

000 t

4,970

7,555

(34)%

7,203

(31)%

 

(1)     Includes export primary production, and secondary production sold into export markets. Comparatives have been restated to align with current presentation.

 

Metallurgical Coal - Export metallurgical coal production increased by 6% to 5.5 million tonnes due to continuing strong performance at Moranbah and the ramp-up of Grosvenor following the completion of its first longwall move in December 2017.  This was partially offset by a longwall move at Grasstree.

 

South Africa - Export thermal coal production reduced by 9% to 4.3 million tonnes despite productivity improvements at Zibulo and Greenside.  The reduction is due to lower volumes at Goedehoop, with challenging geology in its remaining mining sections, as well as Mafube transitioning to a new pit.

 

Domestic thermal coal production decreased by 34% to 5.0 million tonnes primarily due to the completion of the sale of the Eskom-tied operations (New Vaal, New Denmark and Kriel) to Seriti on 1 March 2018 and the end of mine life of the Eskom dedicated pit at Khwezela in 2017 (0.4 million tonnes).  Isibonelo production (domestic non-Eskom production) increased by 41% to 1.3 million tonnes as Q1 2017 was impacted by a dragline outage.

 

Cerrejón - Attributable production from Cerrejón decreased by 12% to 2.4 million tonnes. 

 

Full Year Guidance

 

Full year production guidance for Metallurgical Coal remains unchanged at 20 - 22 million tonnes.

 

Full year production guidance for Export Thermal Coal remains unchanged at 29 - 31 million tonnes.

 

 

 

 

 

Coal, by product (tonnes)

Q1 2018

Q4 2017

Q3 2017

Q2 2017

Q1 2017

Q1 2018

vs.

Q1 2017

Q1 2018

vs.

Q4 2017

Metallurgical Coal (Australia)

5,539,100

4,923,900

5,531,500

3,963,500

5,242,400

6%

12%

Hard Coking Coal

4,853,200

4,300,300

4,696,200

3,237,000

4,747,300

2%

13%

PCI / SSCC

685,900

623,600

835,300

726,500

495,100

39%

10%

11,950,300

15,172,700

15,637,100

15,782,500

15,568,000

(23)%

(21)%

Export (Australia)

208,700

408,600

421,400

304,700

479,000

(56)%

(49)%

Export (South Africa)(1)

4,327,500

4,647,800

4,352,000

4,840,800

4,751,900

(9)%

(7)%

Export (Colombia)

2,444,300

2,913,600

2,496,700

2,449,600

2,781,700

(12)%

(16)%

Domestic (South Africa)

4,969,800

7,202,700

8,367,000

8,187,400

7,555,300

(34)%

(31)%

Total coal production

17,489,400

20,096,600

21,168,600

19,746,000

20,810,400

(16)%

(13)%

Sales volumes

 

 

 

 

 

 

 

Metallurgical Coal (Australia)

5,632,900

5,323,600

5,341,700

4,155,000

4,947,400

14%

6%

Hard Coking Coal

4,885,500

4,653,000

4,707,600

3,649,700

4,477,200

9%

5%

PCI / SSCC

747,400

670,600

634,100

505,300

470,200

59%

11%

Thermal Coal

 

 

 

 

 

 

 

Export (Australia)

293,800

466,900

468,500

422,800

473,200

(38)%

(37)%

Export (South Africa)(1)

4,615,700

4,843,500

4,921,200

4,150,800

4,693,300

(2)%

(5)%

Export (Colombia)

2,480,200

2,619,400

2,517,500

2,770,500

2,646,300

(6)%

(5)%

Domestic (South Africa)

4,711,000

7,370,300

8,549,300

8,385,400

7,718,100

(39)%

(36)%

Third party purchases

2,127,100

1,779,400

2,436,100

1,835,400

1,567,800

36%

20%

 

(1)     Includes export primary production, and secondary production sold into export markets. Comparatives have been restated to align with current presentation.

 

Coal, by operation (tonnes)

Q1 2018

Q4 2017

Q3 2017

Q2 2017

Q1 2017

Q1 2018

vs.

Q1 2017

Q1 2018

vs.

Q4 2017

Metallurgical Coal (Australia)

5,539,100

4,923,900

5,531,500

3,963,500

5,242,400

6%

12%

Capcoal (incl. Grasstree)

1,396,000

1,604,900

1,712,100

1,467,400

1,702,000

(18)%

(13)%

Dawson

534,500

319,700

670,300

787,500

705,100

(24)%

67%

Grosvenor

825,600

161,300

1,012,500

183,600

709,800

16%

412%

Jellinbah

846,300

858,200

819,800

836,400

709,400

19%

(1)%

Moranbah North

1,936,700

1,979,800

1,316,800

688,600

1,416,100

37%

(2)%

Thermal Coal (Australia)

208,700

408,600

421,400

304,700

479,000

(56)%

(49)%

Capcoal (incl. Grasstree)

65,500

95,400

62,000

41,500

83,400

(21)%

(31)%

Dawson

114,500

310,800

342,500

259,300

387,000

(70)%

(63)%

Jellinbah

28,700

2,400

16,900

3,900

8,600

234%

1096%

Total Australia production

5,747,800

5,332,500

5,952,900

4,268,200

5,721,400

0%

8%

Thermal (South Africa)(1)

 

 

 

 

 

 

 

Goedehoop

1,138,000

1,114,300

1,085,400

1,230,800

1,222,100

(7)%

2%

Greenside

1,043,600

1,041,200

906,700

877,700

1,004,800

4%

0%

Zibulo

1,673,100

1,587,900

1,534,600

1,672,900

1,439,400

16%

5%

Khwezela

1,244,000

1,371,300

1,265,300

1,475,000

1,596,100

(22)%

(9)%

Mafube

105,600

350,900

361,200

407,600

441,400

(76)%

(70)%

New Vaal(2)

1,560,500

3,218,500

4,354,300

4,121,900

3,414,300

(54)%

(52)%

New Denmark(2)

560,100

963,300

673,700

769,600

954,400

(41)%

(42)%

Kriel(2)

704,900

1,237,400

1,392,700

1,420,300

1,338,500

(47)%

(43)%

Isibonelo

1,267,500

965,700

1,145,100

1,052,400

896,300

41%

31%

Total South Africa production

9,297,300

11,850,500

12,719,000

13,028,200

12,307,300

(24)%

(22)%

Colombia (Cerrejón)

2,444,300

2,913,600

2,496,700

2,449,600

2,781,700

(12)%

(16)%

Total Coal production

17,489,400

20,096,600

21,168,600

19,746,000

20,810,400

(16)%

(13)%

 

(1)     Export and domestic production; New Vaal, New Denmark, Kriel and Isibonelo produce exclusively domestic volumes.

(2)     The sale of the Eskom-tied operations was completed at the start of March 2018.

 

NICKEL

 

Nickel

Q1

2018

Q1

2017

Q1 2018

vs.

Q1 2017

Q4

2017

Q1 2018

vs.

Q4 2017

Nickel

t

8,600

9,900

(13)%

11,400

(25)%

             

 

Nickel production decreased by 13% as result of a planned 40-day stoppage to replace the rotary kilns refractories.

 

Full year production guidance for Nickel remains unchanged at 42,000 - 44,000 tonnes.

 

Nickel(1)

Q1 2018

Q4 2017

Q3 2017

Q2 2017

Q1 2017

Q1 2018

vs.

Q1 2017

Q1 2018

vs.

Q4 2017

Barro Alto

 

 

 

 

 

 

 

Ore mined

1,001,500

978,600

1,895,000

2,375,700

1,023,500

(2)%

2%

Ore processed

447,600

591,500

578,200

615,700

523,900

(15)%

(24)%

Ore grade processed - %Ni

1.68

1.71

1.72

1.71

1.70

(1)%

(2)%

Production

6,500

9,100

8,900

9,100

7,800

(17)%

(29)%

Codemin

 

 

 

 

 

 

 

Ore mined

-

-

-

7,500

-

-

-

Ore processed

141,100

147,200

152,200

144,000

143,600

(2)%

(4)%

Ore grade processed - %Ni

1.66

1.70

1.70

1.69

1.65

0%

(2)%

Production

2,100

2,300

2,300

2,200

2,100

0%

(9)%

Total Nickel segment nickel production

8,600

11,400

11,200

11,300

9,900

(13)%

(25)%

Sales volumes

9,200

10,900

11,300

10,400

10,400

(12)%

(16)%

 

(1)     Excludes Anglo American Platinum's nickel production.

 

 

MANGANESE

 

Manganese

Q1

2018

Q1

2017

Q1 2018

vs.

Q1 2017

Q4

2017

Q1 2018

vs.

Q4 2017

Manganese ore (1)

000 t

881

823

7%

980

(10)%

Manganese alloys(1)(2)

000 t

41

31

31%

41

-

 

(1)     Saleable production.

(2)     Production includes medium carbon ferro-manganese.

 

Manganese ore - Manganese ore production increased by 7% to 880,800 tonnes.

 

Manganese alloy - Manganese alloy production increased by 31% to 41,200 tonnes.

 

Manganese (tonnes)

Q1 2018

Q4 2017

Q3 2017

Q2 2017

Q1 2017

Q1 2018

vs.

Q1 2017

Q1 2018

vs.

Q4 2017

Samancor

 

 

 

 

 

 

 

Manganese ore(1)

880,800

979,600

839,500

843,300

823,100

7%

(10)%

Manganese alloys(1)(2)

41,200

41,100

37,300

39,300

31,500

31%

-

Samancor sales volumes

 

 

 

 

 

 

 

Manganese ore

824,200

874,900

846,900

887,600

836,000

(1)%

(6)%

Manganese alloys

38,300

37,300

33,500

37,200

34,400

11%

3%

 

(1)     Saleable production.

(2)     Production includes medium carbon ferro-manganese.

 

 

 

 

EXPLORATION AND EVALUATION

 

Exploration and Evaluation expenditure for the quarter increased by 16% to $58 million. Exploration expenditure for the quarter was in line with the first quarter of 2017 at $20 million. Evaluation expenditure for the quarter increased by 27% to $38 million.

 

 

NOTES

·     This Production Report for the first quarter ended 31 March 2018 is unaudited.

·    Production figures are sometimes more precise than the rounded numbers shown in the commentary of this report. The percentage change will reflect the percentage change using the production figures shown in the Production Summary of this report.

·    Copper equivalent production shows changes in underlying production volume. It is calculated by expressing each commodity's volume as revenue, subsequently converting the revenue into copper equivalent units by dividing by the copper price (per tonne). Long-term forecast prices (and foreign exchange rates where appropriate) are used, in order that period-on-period comparisons exclude any impact for movements in price.

 

Forward-looking statements:

 

This contains certain forward-looking statements which involve risk and uncertainty because they relate to events and depend on circumstances that may occur in the future. There are a number of factors that could cause actual results or developments to differ materially from those expressed or implied by these forward-looking statements.

 

For further information, please contact:

 

Media

 

Investors

UK

James Wyatt-Tilby

james.wyatt-tilby@angloamerican.com

Tel: +44 (0)20 7968 8759

 

Marcelo Esquivel

marcelo.esquivel@angloamerican.com

Tel: +44 (0)20 7968 8891

 

South Africa

Pranill Ramchander

pranill.ramchander@angloamerican.com

Tel: +27 (0)11 638 2592

 

Ann Farndell

ann.farndell@angloamerican.com

Tel: +27 (0)11 638 2786

 

UK

Paul Galloway

paul.galloway@angloamerican.com

Tel: +44 (0)20 7968 8718

 

Robert Greenberg

robert.greenberg@angloamerican.com

Tel: +44 (0)20 7968 2124

 

Sheena Jethwa

sheena.jethwa@angloamerican.com

Tel: +44 (0)20 7968 8680

 

Notes to editors:

Anglo American is a global diversified mining business and our products are the essential ingredients in almost every aspect of modern life. Our portfolio of world-class competitive mining operations and undeveloped resources provides the metals and minerals to meet the growing consumer-driven demands of the world's developed and maturing economies. With our people at the heart of our business, we use innovative practices and the latest technologies to discover new resources and mine, process, move and market our products to our customers around the world.

 

As a responsible miner - of diamonds (through De Beers), copper, platinum and other precious metals, iron ore, coal and nickel - we are the custodians of what are precious natural resources. We work together with our key partners and stakeholders to unlock the sustainable value that those resources represent for our shareholders, the communities and countries in which we operate and for society at large. Anglo American is re-imagining mining to improve people's lives.

www.angloamerican.com


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