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Q4 2022 Production Report

02 February, 2023

Anglo American plc
Production Report for the fourth quarter ended 31 December 2022

Duncan Wanblad, Chief Executive of Anglo American, said: “Our production increased by 10%⁽¹⁾ in the fourth quarter compared to the same period in 2021, driven by the ongoing ramp-up at Quellaveco which produced more than 80,000 tonnes of copper. Our Steelmaking Coal operations also contributed by having all three of the longwall operations running, while we saw higher rough diamond production from De Beers and improved operational performance at Minas-Rio and Kumba, our iron ore businesses. Our strong quarterly improvement was tempered by weaker performance at our PGMs operations.

"In 2023, our unwavering focus remains on ensuring a safe and stable platform for strengthened and repeatable operational performance, while progressing towards our sustainability ambitions and advancing our organic growth options. The completion of the transaction in January to combine First Mode and nuGen^TM - our zero emissions haulage system - is designed to accelerate the development and commercialisation of this innovative decarbonisation technology as we work towards carbon neutral operations by 2040."

Q4 2022 highlights

Secured 100% renewable electricity supply for our operations in Australia from 2025, effectively removing all Scope 2 emissions from our Steelmaking Coal business.
Completed phase one of an integrated water project for Los Bronces copper operation in Chile: secures desalinated water for more than 45% of Los Bronces’ needs from 2025, while also providing clean water for local communities.
Copper production increased by 52%, due to the ramp-up of production from our new Quellaveco copper mine in Peru, while production from our operations in Chile was broadly flat.
Rough diamond production increased by 6%, reflecting strong operational performance, particularly at Jwaneng, which was partially offset by the planned completion of the final cut at Venetia's open pit.
Steelmaking coal production increased by 6%, primarily due to all three underground longwall operations operating in Q4 2022, partially offset by the planned end of production at the Grasstree operation in January 2022.
Iron ore production increased by 4%, reflecting higher plant availability at Minas-Rio, and improved operational performance at Kumba's Sishen mine, which more than offset the constraints on Kolomela's production that resulted from disappointing third party logistics performance.
Metal in concentrate production from our Platinum Group Metals (PGMs) operations decreased by 10%, due to the impact of lower grades at Mogalakwena and planned infrastructure closures at Amandelbult.
Nickel production decreased by 4%, primarily due to planned annual maintenance.

Production	Q4 2022	Q4 2021	% vs. Q4 2021	2022	2021	% vs. 2021
Diamonds (Mct)⁽²⁾	8.2	7.7	6%	34.6	32.3	7%
Copper (kt)⁽³⁾	244	161	52%	664	647	3%
Nickel (kt)⁽⁴⁾	10.2	10.6	(4)%	39.8	41.7	(5)%
Platinum group metals (koz)⁽⁵⁾	990	1,103	(10)%	4,024	4,299	(6)%
Iron ore (Mt)⁽⁶⁾	15.7	15.1	4%	59.3	63.8	(7)%
Steelmaking coal (Mt)	4.6	4.4	6%	15.0	14.9	1%
Manganese ore (kt)	984	835	18%	3,741	3,683	2%

^{(1) Copper equivalent production basis.

(2) De Beers Group 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 operations in Chile and Peru only (excludes copper production from the Platinum Group Metals business unit).

(4) Reflects nickel production from the Nickel operations in Brazil only (excludes 21.3 kt of full year 2022 nickel 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.}

Production and unit cost guidance summary

	2023 production guidance⁽¹⁾	2023 unit cost guidance⁽¹⁾
Diamonds⁽²⁾	30-33 Mct	c.$80/ct
Copper⁽³⁾	840-930 kt	c.156c/lb
Nickel⁽⁴⁾	38-40 kt	c.515c/lb
Platinum Group Metals⁽⁵⁾	3.6-4.0 Moz	c.$1,025/oz
Iron Ore⁽⁶⁾	57-61 Mt	c.$39/t
Steelmaking Coal⁽⁷⁾	16-19 Mt	c.$105/t

^{(1) Unit costs exclude royalties, depreciation and include direct support costs only. FX rates used for 2023 costs: ~17 ZAR:USD, ~1.5 AUD:USD, ~5.3 BRL:USD, ~900 CLP:USD, ~3.8 PEN:USD.

(2) Production on a 100% basis, except for the Gahcho Kué joint venture, which is on an attributable 51% basis, subject to trading conditions. Venetia continues to transition to underground operations - first production is expected in 2023. Unit cost is based on De Beers' share of production.

(3) Copper business unit only. On a contained-metal basis. Total copper production is the sum of Chile and Peru: Chile: 530-580 kt and Peru: 310-350 kt. Production in Chile is subject to water availability, and in Peru is subject to any socio-political effects. Unit cost total is a weighted average based on the mid-point of production guidance. Chile: c.190c/lb. Peru: c.100c/lb.

(4) Nickel operations in Brazil only. The Group also produces approximately 20 kt of nickel on an annual basis as a co-product from the PGM operations.

(5) 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 FY2021 results presentation slide 38 for indicative split of own mined volumes. 2023 metal in concentrate production is expected to be 1.6-1.8 Moz of platinum, 1.2-1.3 Moz of palladium and 0.8-0.9 Moz of other PGMs and gold. 5E + gold refined production is expected to be 3.6-4.0 Moz, subject to the impact of Eskom load-shedding. Unit cost is per own mined 5E + gold PGMs metal in concentrate ounce.

(6) Wet basis. Total iron ore is the sum of operations at Minas-Rio in Brazil and Kumba in South Africa. Kumba: 35-37 Mt and Minas-Rio: 22-24 Mt. Kumba production is subject to the third party rail and port performance. Unit cost total is a weighted average based on the mid-point of production guidance. Kumba: c.$44/t and Minas-Rio: c.$32/t .

(7) Production excludes thermal coal by-product from Australia. FOB unit cost comprises managed operations and excludes royalties and study costs.}

Realised prices

	FY 2022	FY 2021	H2 2022	H1 2022	FY 2022 vs. FY 2021	H2 2022 vs. H1 2022
De Beers
Consolidated average realised price ($/ct)⁽¹⁾	197	146	179	213	35%	(16)%
Average price index⁽²⁾	142	115	145	140	23%	4%
Copper (USc/lb)⁽³⁾	385	453	369	401	(15)%	(8)%
Copper Chile (USc/lb)⁽⁴⁾	386	453	366	401	(15)%	(9)%
Copper Peru (USc/lb)	379	n/a	379	n/a	n/a	n/a
Nickel (US$/lb)	10.26	7.73	9.27	11.59	33%	(20)%
Platinum Group Metals
Platinum (US$/oz)⁽⁵⁾	962	1,083	960	964	(11)%	0%
Palladium (US$/oz)⁽⁵⁾	2,076	2,439	2,000	2,147	(15)%	(7)%
Rhodium (US$/oz)⁽⁵⁾	15,600	19,613	13,865	17,131	(20)%	(19)%
Basket price (US$/PGM oz)⁽⁶⁾	2,551	2,761	2,415	2,671	(8)%	(10)%
Iron Ore – FOB prices⁽⁷⁾	111	157	88	135	(29)%	(35)%
Kumba Export (US$/wmt)⁽⁸⁾	113	161	87	135	(30)%	(36)%
Minas-Rio (US$/wmt)⁽⁹⁾	108	150	89	134	(28)%	(34)%
Steelmaking Coal – HCC (US$/t)⁽¹⁰⁾	310	211	263	407	47%	(35)%
Steelmaking Coal – PCI (US$/t)⁽¹⁰⁾	271	138	255	322	96%	(21)%

^{(1) Consolidated average realised price based on 100% selling value post-aggregation.

(2) Average of the De Beers price index for the Sights within the 12-month period. The De Beers price index is relative to 100 as at December 2006.

(3) Average realised total copper price is a weighted average of the Copper Chile and Copper Peru realised prices.

(4) The realised price for Copper Chile excludes third party sales volumes.

(5) The realised price excludes trading.

(6) 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).

(7) Average realised total iron ore price is a weighted average of the Kumba and Minas-Rio realised prices.

(8) Average realised export basket price (FOB Saldanha) (wet basis as product is shipped with ~1.6% moisture). 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 $115/t (FY 2021: $164/t), higher than the dry 62% Fe benchmark price of $102/t (FOB South Africa, adjusted for freight).

(9) Average realised export basket price (FOB Açu) (wet basis as product is shipped with ~9% moisture).

(10) Weighted average coal sales price achieved at managed operations. Australian thermal coal by-product FY 2022 was US$310/t and FY 2021 was US$120/t, a 158% increase. H2 2022 was $329/t and H1 2022 was $280/t, a 18% increase.}

NOTES

This Production Report for the quarter ended 31 December 2022 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	Emma Waterworth
Email: [email protected]	Email: [email protected]
Tel: +44 (0)20 7968 8891	Tel: +44 (0)20 7968 8574
Rebecca Meeson–Frizelle	Michelle Jarman
Email: [email protected]	Email: [email protected]
Tel: +44 (0)20 7968 1374	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 steelmaking coal, 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 and third-party information:

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, prospects and projects (including development plans and objectives relating to Anglo American’s products, production forecasts and Ore Reserve and Mineral Resource positions) and sustainability performance related (including environmental, social and governance) goals, ambitions, targets, visions, milestones 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, unanticipated downturns in business relationships with customers or their purchase from Anglo American, mineral resource exploration and project development capabilities and delivery, recovery rates and other operational capabilities, safety, health or environmental incidents, the effects of global pandemics and outbreaks of infectious diseases, the impact of attacks from third parties on our information systems, natural catastrophes or adverse geological conditions, climate change and extreme weather events, the outcome of litigation or regulatory proceedings, the availability of mining and processing equipment, the ability to obtain key inputs in a timely manner, the ability to produce and transport products profitably, the availability of necessary infrastructure (including transportation) services, the development, efficacy and adoption of new technology or competing, challenges in realising resource estimates or discovering new economic mineralisation, the impact of foreign currency exchange rates on market prices and operating costs, the availability of sufficient credit, liquidity and counterparty risks, the effects of inflation, terrorism, war, conflict, political or civil unrest, uncertainty, tensions and disputes and economic and financial conditions around the world, evolving societal and stakeholder requirements and expectations, shortages of skilled employees, unexpected difficulties relating to acquisitions or divestitures, competitive pressures and 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, but 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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