Press releases - 2023

Duncan Wanblad, Chief Executive of Anglo American, said: “Production increased by 11%⁽¹⁾ compared to the second quarter in 2022, reflecting the ramp-up of our new Quellaveco copper mine in Peru, which has now reached commercial production levels. We also delivered a strong performance at our Minas-Rio iron ore operation in Brazil, as well as higher production from our open cut operations in Steelmaking Coal in Australia. These were offset by temporary lower production from De Beers' Venetia mine, as it transitions from open pit to underground, and expected lower PGMs production, as well as the impact of lower copper throughput and grades in Chile.

"Our focus remains resolutely on safely achieving our full year production guidance through the seasonally stronger second half of the year. The recent changes to our executive leadership team, coupled with re-organising how we manage our production businesses and the functional expertise that supports them, better positions us to drive safe and consistent operational performance and strategic delivery over the longer term."

Q2 2023 highlights

• De Beers and the Government of Botswana reached an agreement in principle⁽²⁾ on a new 10-year sales agreement for Debswana’s rough diamond production (through to 2033) and a 25-year extension of the Debswana mining licences (through to 2054).
• Copper production increased by 56%, reflecting the ramp-up to commercial production levels at our new Quellaveco mine in Peru, while production from our operations in Chile decreased by 2%.
• Steelmaking coal production increased by 28%, reflecting higher production at the open cut operations, which were impacted by unseasonal wet weather in Q2 2022.
• Iron ore production increased by 9%, principally driven by a strong operational performance at Minas-Rio where production increased by 29%.
• Nickel production decreased by 4%, reflecting the impact of lower grades.
• Rough diamond production decreased by 5%, as a strong operational performance was offset by expected lower production from Venetia, as it transitions to underground operations.
• Production from our Platinum Group Metals (PGMs) operations decreased by 9%, mainly driven by short-term operational challenges and 2022 planned infrastructure closures at Amandelbult, as well as the planned ramp-down of Kroondal.

^{(1) Total production across Anglo American’s products is calculated on a copper equivalent basis, including the equity share of De Beers’ production and using long-term consensus parameters.
(2) The final agreement will constitute a related party transaction under the UK Listing Rules, and therefore will be subject to approval by Anglo American’s shareholders in due course.
(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).
(4) Reflects nickel production from the Nickel operations in Brazil only (excludes 6.1 kt of Q2 2023 nickel production from the Platinum Group Metals business).
(5) Produced ounces of metal in concentrate. 5E+Au (platinum, palladium, rhodium, ruthenium and iridium plus gold). Reflects own mined production and purchase of concentrate.
(6) De Beers Group production is on a 100% basis, except for the Gahcho Kué joint operation which is on an attributable 51% basis.
(7) Wet basis.}

Production and unit cost guidance summary

^{(1) Unit costs exclude royalties and depreciation and include direct support costs only. FX rates used for H2 2023 costs: ~18 ZAR:USD, ~1.5 AUD:USD, ~4.8 BRL:USD, ~800 CLP:USD, ~3.7 PEN:USD (previously ~17 ZAR:USD, ~5.3 BRL:USD, ~900 CLP:USD, ~3.8 PEN:USD, no change to AUD:USD).
(2) Copper business 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. Unit cost total is a weighted average based on the mid-point of production guidance. Chile: c.205 c/lb (previously c.190 c/lb) and Peru: c.100 c/lb.
(3) 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.
(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 FY2022 results presentation slide 42 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-curtailment. Unit cost is per own mined 5E + gold PGMs metal in concentrate ounce.
(5) Production on a 100% basis, except for the Gahcho Kué joint operation, which is on an attributable 51% basis. Production is subject to trading conditions. Venetia continues to transition to underground operations - with first production in 2023. Unit cost is based on De Beers' share of production.
(6) Wet basis. Total iron ore is the sum of operations at Kumba in South Africa and Minas-Rio in Brazil. 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.$43/t (previously c.$44/t) and Minas-Rio: c.$33/t (previously c.$32/t).
(7) Production excludes thermal coal by-product. FOB unit cost comprises managed operations and excludes royalties and study costs.}

Realised prices

^{(1) Average realised total copper price is a weighted average of the Copper Chile and Copper Peru realised prices.
(2) Realised price for Copper Chile excludes third-party sales volumes.
(3) Realised price excludes trading.
(4) Price for a basket of goods per PGM oz. The dollar basket price is the net sales revenue from all metals sold (PGMs, base metals and other metals) excluding trading, per PGM 5E + gold ounces sold (own mined and purchased concentrate) excluding trading.
(5) Consolidated average realised price based on 100% selling value post-aggregation.
(6) Average of the De Beers price index for the Sights within the six-month period. The De Beers price index is relative to 100 as at December 2006.
(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 stand-alone results due to sales to other Group companies. Average realised export basket price (FOB Saldanha) on a dry basis is $108/t (H1 2022: $137/t), higher than the dry 62% Fe benchmark price of $104/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 in H1 2023, a 40% decrease to $169/t (H1 2022: $280/t).}

NOTES

• This Production Report for the second quarter ended 30 June 2023 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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