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Q3 2021 Production Report

21 October, 2021

Anglo American plc Production Report for the third quarter ended 30 September 2021.

Mark Cutifani, Chief Executive of Anglo American, said: “Production is up 2%⁽¹⁾ compared to Q3 of last year, with our operating levels generally maintained at approximately 95%⁽²⁾ of normal capacity. The increase in production is led by planned higher rough diamond production at De Beers, increased production from our Minas-Rio iron ore operation in Brazil, reflecting the planned pipeline maintenance in Q3 2020, and improved plant performance at our Kumba iron ore operations in South Africa.

"We are broadly on track to deliver our full year production guidance across all products, while taking the opportunity to tighten up the guidance for diamonds, copper and iron ore within our current range as we approach the end of the year. Our copper operations in Chile continue to work hard on mitigating the risk of water availability due to the challenges presented by the longest drought on record for the region, including through sourcing water that is not suitable for use elsewhere and further increasing water recycling."

Q3 2021 highlights

Rough diamond production increased by 28%, principally from the Jwaneng and Venetia mines, reflecting planned higher production in response to the ongoing consumer demand recovery led by the key US and China markets.
Copper production decreased by 6% due to planned maintenance at Collahuasi, while total year to date production across all copper operations increased marginally by 1% despite ongoing water availability constraints caused by record drought conditions in Chile.
Our Platinum Group Metals (PGMs) operations delivered a 39% increase in refined output, reflecting stable performance from the ACP Phase A unit.
Iron ore production increased by 15%, driven primarily by a 22% uplift from Minas-Rio, reflecting the planned maintenance period in Q3 2020 for routine internal scanning of the pipeline. Kumba production also performed strongly, increasing by 11% due to improved plant performance.
At our longwall metallurgical coal operations in Australia, Moranbah has steadily improved as they mined through challenging geological zones this quarter, and development work at Grosvenor continues to progress, with longwall mining expected to restart towards the end of the year.
Primary nickel production increased by 2% over the period and by-product nickel from our PGMs business increased by 20% to 6,000 tonnes.

Production	Q3 2021	Q3 2020	% vs. Q3 2020	YTD 2021	YTD 2020	% vs. YTD 2020
Diamonds (Mct)⁽³⁾	9.2	7.2	28%	24.6	18.4	33%
Copper (kt)⁽⁴⁾	157	166	(6)%	487	480	1%
Platinum group metals (koz)⁽⁵⁾	1,116	1,113	0%	3,195	2,733	17%
Iron ore (Mt)⁽⁶⁾	16.9	14.7	15%	48.8	45.5	7%
Metallurgical coal (Mt)	4.3	4.8	(11)%	10.5	12.6	(17)%
Nickel (kt)⁽⁷⁾	10.4	10.2	2%	31.1	31.9	(3)%
Manganese ore (kt)	1,004	939	7%	2,849	2,578	11%

^{(1) Copper equivalent production is normalised to reflect the demerger of the South Africa thermal coal operations, the announced sale of our interest in Cerrejón and the closure of the manganese alloy operations.}
^{(2) Production capacity excludes Grosvenor.}
^{(3) De Beers Group production is on a 100% basis, except for the Gahcho Kué joint venture which is on an attributable 51% basis.}
^{(4) Contained metal basis. Reflects copper production from the Copper operations in Chile only (excludes copper production from the Platinum Group Metals business unit).}
^{(5) Produced ounces of metal in concentrate. 5E+Au (platinum, palladium, rhodium, ruthenium and iridium plus gold). Reflects own mine production and purchase of concentrate.}
^{(6) Wet basis.}
^{(7) Reflects nickel production from the Nickel operations in Brazil only (excludes nickel production from the Platinum Group Metals business unit).}

PRODUCTION OUTLOOK SUMMARY

2021 production guidance is summarised as follows:

	2021 production guidance⁽¹⁾
Diamonds⁽²⁾	~32 Mct (previously 32-33Mct)
Copper⁽³⁾	650-660 kt (previously 650-680kt)
Platinum Group Metals⁽⁴⁾	4.2–4.4 Moz
Iron ore⁽⁵⁾	~64.5 Mt (previously 64.5-66.5Mt)
Metallurgical coal⁽⁶⁾	14–16 Mt
Nickel⁽⁷⁾	42-44 kt

^{(1) Subject to the extent of further Covid-19 related disruption.}
^{(2) On a 100% basis, except for the Gahcho Kué joint venture, which is on an attributable 51% basis.}
^{(3) Copper operations in Chile only. On a contained-metal basis.}
^{(4) 5E + gold produced metal in concentrate ounces. Includes own mined production (~65%) and purchased concentrate volumes (~35%). The split of metals differs for own mined and purchased concentrate, refer to FY2019 results presentation slide 30 for indicative split of own mined volumes. FY2021 metal in concentrate production is expected to be 1.9-2.0 million ounces of platinum, 1.35-1.40 million ounces of palladium and 0.95-1.0 million ounces of other PGMs and gold.}
^{(5) Wet basis.}
^{(6) Excludes thermal coal by-product from Australia.}
^{(7) Nickel operations in Brazil only.}

REALISED PRICES

	Q3 YTD 2021	Q3 YTD 2020	Q3 YTD 2021 vs Q3 YTD 2020
Copper (USc/lb)⁽¹⁾	434	273	59%
Platinum Group Metals
Platinum (US$/oz)	1,118	876	28%
Palladium (US$/oz)	2,582	2,143	20%
Rhodium (US$/oz)	22,009	9,465	133%
Basket price (US$/PGM oz)⁽²⁾	2,868	1,869	53%
Iron Ore – FOB prices⁽³⁾	176	99	78%
Kumba Export (US$/wmt)⁽⁴⁾	181	101	79%
Minas-Rio (US$/wmt)⁽⁵⁾	167	96	74%
Metallurgical Coal - HCC (US$/t)⁽⁶⁾	149	114	31%
Nickel (USc/lb)	748	531	41%

^{(1) The realised price for Copper excludes third party sales volumes.}
^{(2) Price for a basket of goods per PGM oz. The dollar basket price is the net sales revenue from all metals (PGMs, base metals and other metals), excluding trading, per 5E + gold sold ounces (own mined and purchased concentrate).}
^{(3) Average realised total iron ore price is a weighted average of the Kumba and Minas-Rio realised prices. The comparative has been restated as Kumba previously reported on a dry basis.}
^{(4) Average realised export basket price (FOB Saldanha) (wet basis as product is shipped with ~1.6% moisture). The comparative has been restated as Kumba previously reported on a dry basis. The realised prices differ to Kumba's standalone results due to sales to other Group companies. Average realised export basket price (FOB Saldanha) on a dry basis is $184/t (Q3 2020: $103/t) and this was higher than the dry 62% Fe benchmark price of $157/t (FOB South Africa, adjusted for freight).}
^{(5) Average realised export basket price (FOB Açu) (wet basis as product is shipped with ~9% moisture).}
^{(6) Weighted average coal sales price achieved at managed operations. Metallurgical Coal PCI (US$/t) Q3 2021 was US$138/t and Q3 2020 was US$90/t, resulting in a 53% YTD movement. Thermal Coal Australia (US$/t) Q3 2021 was US$105/t and Q3 2020 was US$56/t, resulting in a 88% YTD movement.}

NOTES

This Production Report for the quarter ended 30 September 2021 is unaudited.
Production figures are sometimes more precise than the rounded numbers shown in this Production Report.
Copper equivalent production shows changes in underlying production volume. It is calculated by expressing each product’s volume as revenue, subsequently converting the revenue into copper equivalent units by dividing by the copper price (per tonne). Long-term forecast prices are used, in order that period-on-period comparisons exclude any impact for movements in price.
Please refer to page 16 for information on forward-looking statements.

In this document, references to “Anglo American”, the “Anglo American Group”, the “Group”, “we”, “us”, and “our” are to refer to either Anglo American plc and its subsidiaries and/or those who work for them generally, or where it is not necessary to refer to a particular entity, entities or persons. The use of those generic terms herein is for convenience only, and is in no way indicative of how the Anglo American Group or any entity within it is structured, managed or controlled. Anglo American subsidiaries, and their management, are responsible for their own day-to-day operations, including but not limited to securing and maintaining all relevant licences and permits, operational adaptation and implementation of Group policies, management, training and any applicable local grievance mechanisms. Anglo American produces group-wide policies and procedures to ensure best uniform practices and standardisation across the Anglo American Group but is not responsible for the day to day implementation of such policies. Such policies and procedures constitute prescribed minimum standards only. Group operating subsidiaries are responsible for adapting those policies and procedures to reflect local conditions where appropriate, and for implementation, oversight and monitoring within their specific businesses.

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For further information, please contact:

Media	Investors
UK	UK
James Wyatt-Tilby	Paul Galloway
Email: [email protected]	Email: [email protected]
Tel: +44 (0)20 7968 8759	Tel: +44 (0)20 7968 8718
Marcelo Esquivel	Juliet Newth
Email: [email protected]	Email: [email protected]
Tel: +44 (0)20 7968 8891	Tel: +44 (0)20 7968 8830
Katie Ryall	Michelle Jarman
Email: [email protected]	Email: [email protected]
Tel: +44 (0)20 7968 8935	Tel: +44 (0)20 7968 1494
South Africa
Nevashnee Naicker
Email: [email protected]
Tel: +27 (0)11 638 3189
Sibusiso Tshabalala
Email: [email protected]
Tel: +27 (0)11 638 2175

Notes to editors:

Anglo American is a leading global mining company and our products are the essential ingredients in almost every aspect of modern life. Our portfolio of world-class competitive operations, with a broad range of future development options, provides many of the future-enabling metals and minerals for a cleaner, greener, more sustainable world and that meet the fast growing every day demands of billions of consumers. With our people at the heart of our business, we use innovative practices and the latest technologies to discover new resources and to mine, process, move and market our products to our customers – safely and sustainably.

As a responsible producer of diamonds (through De Beers), copper, platinum group metals, premium quality iron ore and metallurgical coal for steelmaking, and nickel – with crop nutrients in development – we are committed to being carbon neutral across our operations by 2040. More broadly, our Sustainable Mining Plan commits us to a series of stretching goals to ensure we work towards a healthy environment, creating thriving communities and building trust as a corporate leader. We work together with our business partners and diverse stakeholders to unlock enduring value from precious natural resources for the benefit of the communities and countries in which we operate, for society as a whole, and for our shareholders. Anglo American is re-imagining mining to improve people’s lives.

www.angloamerican.com

Forward-looking statements:

This announcement includes forward-looking statements. All statements other than statements of historical facts included in this announcement, including, without limitation, those regarding Anglo American’s financial position, business, acquisition and divestment strategy, dividend policy, plans and objectives of management for future operations (including development plans and objectives relating to Anglo American’s products, production forecasts and Ore Reserves and Mineral Resource estimates) and environmental, social and corporate governance goals and aspirations, are forward-looking statements. By their nature, such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Anglo American, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.

Such forward-looking statements are based on numerous assumptions regarding Anglo American’s present and future business strategies and the environment in which Anglo American will operate in the future. Important factors that could cause Anglo American’s actual results, performance or achievements to differ materially from those in the forward-looking statements include, among others, levels of actual production during any period, levels of global demand and commodity market prices, mineral resource exploration and development capabilities, recovery rates and other operational capabilities, safety, health or environmental incidents, the effects of global pandemics and outbreaks of infectious diseases, the outcome of litigation or regulatory proceedings, the availability of mining and processing equipment, the ability to produce and transport products profitably, the availability of transportation infrastructure, the impact of foreign currency exchange rates on market prices and operating costs, the availability of sufficient credit, the effects of inflation, political uncertainty and economic conditions in relevant areas of the world, the actions of competitors, activities by courts, regulators and governmental authorities such as in relation to permitting or forcing closure of mines and ceasing of operations or maintenance of Anglo American's assets and changes in taxation or safety, health, environmental or other types of regulation in the countries where Anglo American operates, conflicts over land and resource ownership rights and such other risk factors identified in Anglo American’s most recent Annual Report. Forward-looking statements should, therefore, be construed in light of such risk factors and undue reliance should not be placed on forward-looking statements.

These forward-looking statements speak only as of the date of this announcement. Anglo American expressly disclaims any obligation or undertaking (except as required by applicable law, the City Code on Takeovers and Mergers, the UK Listing Rules, the Disclosure and Transparency Rules of the Financial Conduct Authority, the Listings Requirements of the securities exchange of the JSE Limited in South Africa, the SIX Swiss Exchange, the Botswana Stock Exchange and the Namibian Stock Exchange and any other applicable regulations) to release publicly any updates or revisions to any forward-looking statement contained herein to reflect any change in Anglo American’s expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based. Nothing in this announcement should be interpreted to mean that future earnings per share of Anglo American will necessarily match or exceed its historical published earnings per share.

Certain statistical and other information about Anglo American included in this announcement is sourced from publicly available third-party sources. As such, it has not been independently verified and presents the views of those third parties, though these may not necessarily correspond to the views held by Anglo American and Anglo American expressly disclaims any responsibility for, or liability in respect of, such information.

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