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

Transparency directive : regulatory news

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.


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