Press releases - 2024

Production Report for the fourth quarter ended 31 December 2023

Duncan Wanblad, Chief Executive of Anglo American, said: “Our fourth quarter production was in line with our expectations and in line with the third quarter, despite the deliberate slowdown at Kumba to help draw down stock levels caused by poor third-party rail performance. Our Quellaveco mine in Peru delivered its strongest quarter yet of 93,700 tonnes of copper, while Minas-Rio also delivered its highest ever quarterly volume of 6.6 million tonnes of premium high-grade iron ore. Compared to the same period in 2022, fourth quarter volumes reduced by 7%⁽¹⁾, primarily due to the planned Kumba reduction and the current unfavourable ore phase at Los Bronces.

“Looking ahead, our deliberate prioritisation of value over volume is designed to improve margins and returns. We are committed to safely delivering a consistent production performance in a streamlined and more effective organisation with significantly lower costs and capital requirements and that is more resilient through the cycle.

“We are implementing the right actions to enhance value now and for the longer term, and will continue to do so. We see significant value upside from operational resilience, reducing complexity, and from the growth opportunities presented by the high quality of our resource endowments and the major demand trends.”

Q4 2023 highlights

• Minas-Rio had a record quarterly performance, increasing production by 15% compared to Q4 2022. However, this was more than offset by a planned slowdown in Kumba's production to align with third-party logistics constraints, resulting in an overall decrease in iron ore production of 12%.
• Nickel production increased by 9%, reflecting improved operational stability.
• Steelmaking coal production increased by 2%, reflecting steady performance at the Aquila operation and improved performance at Grosvenor, partly offset by ongoing challenging strata conditions at Moranbah.
• Copper production decreased by 6%: a 16% decrease in Chile's production was primarily driven by Los Bronces (expected lower grade and harder ore), which more than offset higher production from Quellaveco in Peru.
• Production from our Platinum Group Metals (PGMs) operations was 6% lower, mainly due to the planned ramp-down of operations at Kroondal (now sold) and lower production at Amandelbult due to planned infrastructure closures.
• Rough diamond production decreased by 3%, primarily due to the planned reduction as Venetia transitions to underground operations, partly offset by higher production from Botswana.
• The Steelmaking Coal full year 2023 unit cost of $121/t was $6/t above guidance due to lower than expected production from the higher fixed cost underground operation at Moranbah.
• 2023 production was 2%⁽¹⁾ higher than prior year, reflecting the 24% increase in copper volumes primarily from Quellaveco, a strong performance from Minas-Rio and a steady increase from the Steelmaking Coal operations.
• All 2024 guidance is unchanged from the December investor update.

^{(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 forecast prices.
(2) Contained metal basis. Reflects copper production from the Copper operations in Chile and Peru only (excludes copper production from the Platinum Group Metals business).
(3) Reflects nickel production from the Nickel operations in Brazil only (excludes 7.0 kt of Q4 2023 nickel production from the Platinum Group Metals business).
(4) Produced ounces of metal in concentrate. 5E + gold (platinum, palladium, rhodium, ruthenium and iridium plus gold). Reflects own mined production and purchase of concentrate.
(5) Production is on a 100% basis, except for the Gahcho Kué joint operation which is on an attributable 51% basis.
(6) 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 2024F unit costs: ~850 CLP:USD, ~3.7 PEN:USD, ~5.0 BRL:USD, ~19 ZAR:USD, ~1.5 AUD:USD.
(2) Copper business only. On a contained-metal basis. Total copper production is the sum of Chile and Peru: Chile: 430-460 kt and Peru: 300-330 kt. Unit cost for Chile: c.190 c/lb and Peru: c.110 c/lb. Production in Chile is subject to water availability. Production in Peru will be weighted to the second half of the year, primarily as a result of the grades temporarily declining to between 0.6-0.7% TCu in the first half of the year as the geotechnical fault requires changes to be made to the angle of the slope in the mining pit wall.
(3) Nickel operations in Brazil only. The Group also produces approximately 20 kt of nickel on an annual basis from the PGM operations.
(4) 5E + gold produced metal in concentrate (M&C) ounces. Includes own mined production and purchased concentrate (POC) volumes. M&C production by source is expected to be own mined of 2.1-2.3 million ounces and purchase of concentrate of 1.2-1.4 million ounces. The average M&C split by metal is Platinum: ~45%, Palladium: ~35% and Other: ~20%. Refined production (5E + gold) is expected to be 3.3-3.7 million ounces. Refined production is usually lower in the first quarter than the rest of the year, due to the annual stock count and planned processing maintenance. Production remains 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. De Beers will assess options to reduce production in response to prevailing market conditions. Venetia continues to transition to underground operations where production is expected to ramp-up over the next few years. 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: 23-25 Mt. Kumba production is subject to the third-party rail and port performance. Unit cost for Kumba: c.$38/t and Minas-Rio: c.$35/t.
(7) Production excludes thermal coal by-product. FOB unit cost comprises managed operations and excludes royalties.}

Realised prices

^{(1) Average realised total copper price is a weighted average of the Copper Chile and Copper Peru realised prices.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 12-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 could 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 $119/t (FY 2022: $115/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. The average realised price for thermal coal by-product for 2023, decreased by 53% to $145/t (FY 2022: $310/t). H2 2023 was $123/t and H1 2023 was $169/t, a 27% decrease.}

Notes

• This Production Report for the fourth quarter ended 31 December 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, and includes the equity share of De Beers’ production. 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 17 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.

This document is for information purposes only and does not constitute, nor is to be construed as, an offer to sell or the recommendation, solicitation, inducement or offer to buy, subscribe for or sell shares in Anglo American or any other securities by Anglo American or any other party. Further, it should not be treated as giving investment, legal, accounting, regulatory, taxation or other advice and has no regard to the specific investment or other objectives, financial situation or particular needs of any recipient.

View full PDF of this press release (PDF, 418KB, opens in a new window)

View Anglo American Q4 2023 Production Tables (XLS, 154KB, opens in a new window)