Press releases - 2024

Production Report for the third quarter ended 30 September 2024

Duncan Wanblad, Chief Executive of Anglo American, said: “Our consistent focus on operational excellence continues to deliver stable production in line with our expectations. Our Minas-Rio iron ore operation in Brazil achieved a second successive record quarter while the reshaping of our copper operations continues to progress, with the older of the two Los Bronces plants placed on care and maintenance. Ongoing stability at the PGM processing assets allows us to increase full year refined PGM production guidance to 3.7–3.9 million ounces¹, and strong operational performance at Nickel increases production guidance to 38,000-39,000 tonnes¹, lowering the unit cost guidance to c.530 c/lb¹. All other production and unit cost² guidance is unchanged.

"Our accelerated portfolio simplification to unlock the inherent value in Anglo American is well under way. The PGMs demerger is on track to complete by the middle of 2025. Our Steelmaking Coal sale process continues to see significant competition for this world-class set of assets, with a final round of bidders in place, and we expect to announce execution of a sale agreement in the coming months. We are also encouraged by recent imagery that shows that the fire damage in the underground area of the Grosvenor mine appears limited, further supporting the sale process.

"As previously announced, we reduced rough diamond production from De Beers in response to market conditions. The diamond market remains challenging as the midstream continues to hold higher than normal levels of inventory and the expectation remains for a protracted recovery. As a result and together with our partners, we will continue to assess the options to reduce production going forward.

"We are making excellent progress with our portfolio simplification to create an exciting and differentiated investment proposition focused on our world-class copper, premium iron ore and crop nutrients assets - all future-enabling products. This highly cash generative and much higher margin portfolio will offer greater resilience through cycles with the benefit of significant high quality and well sequenced growth options, including a clear path to increase annual copper production to more than one million tonnes by the early 2030's."

 Q3 2024 highlights

• Copper production is on track to meet full year guidance, decreasing 13% in the quarter as expected versus the comparative period, due to the planned closure of the smaller and more costly Los Bronces plant, partially offset by higher grades at El Soldado. Production at Quellaveco in Peru is expected to increase in the fourth quarter as grades and recoveries improve.
• In Iron Ore, production was 2% higher as Minas-Rio achieved a record third quarter performance, reflecting enhanced operational stability, partially offset by a planned decrease at Kumba to align with third-party logistics constraints. In October, the Brazilian anti-trust regulator approved the Serpentina transaction with Vale, and this is on track to close in the fourth quarter.
• Steelmaking coal production decreased by 6%, primarily driven by the cessation of mining at Grosvenor following the underground fire in June 2024. Excluding the impacts of Grosvenor, steelmaking coal production increased by 3%, reflecting higher production from the Dawson open cut operation and Moranbah longwall operation.
• Production from our Platinum Group Metals (PGMs) operations decreased 10% versus the comparative period, primarily reflecting the expected lower metal in concentrate production in line with 2024 guidance. On a quarter-on-quarter basis, production was flat.
• Nickel production increased by 6% largely due to operational improvements at Barro Alto.
• Rough diamond production decreased by 25%, reflecting a production response to the prolonged period of lower demand, higher than normal levels of inventory in the midstream and a continued focus on managing working capital.

^{(1) Refined PGM production was previously 3.3-3.7 million ounces. Nickel production was previously 36,000-38,000 tonnes and the unit cost was c.550 c/lb.
(2) FX rates in 2024 unit cost guidance: c.850 CLP:USD, c.3.7 PEN:USD, c.5.0 BRL:USD, c.19 ZAR:USD, c.1.5 AUD:USD.
(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) Wet basis.
(5) Produced ounces of metal in concentrate. 5E + gold (platinum, palladium, rhodium, ruthenium and iridium plus gold). Reflects own mined production and purchase of concentrate.
(6) Production is on a 100% basis, except for the Gahcho Kué joint operation which is on an attributable 51% basis.
(7) Reflects nickel production from the Nickel operations in Brazil only (excludes 7.4 kt of Q3 2024 nickel production from the Platinum Group Metals business).}

Production and unit cost guidance summary

^{(1) Unit costs exclude royalties and depreciation and include direct support costs only. 2024 unit cost guidance was set at: c.850 CLP:USD, c.3.7 PEN:USD, c.5.0 BRL:USD, c.19 ZAR:USD, c.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. 2024 unit cost guidance for Chile: c.190 c/lb and Peru: c.110 c/lb. The copper unit costs are impacted by FX rates and pricing of by-products, such as molybdenum. Production in Chile is weighted to the first half of the year due to the planned closure of the Los Bronces plant at the end of July; production is also subject to water availability. Production in Peru is weighted to the second half of the year as a higher grade area of the mine is accessed.
(3) 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 third-party rail and port availability and performance. 2024 unit cost guidance for Kumba: c.$38/t and Minas-Rio: c.$35/t.
(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: c.45%, Palladium: c.35% and Other: c.20%. Refined production (5E + gold) is revised up to 3.7–3.9 million ounces (previously 3.3–3.7 million ounces) reflecting the benefit of no Eskom load-curtailment this year and good stability at the processing assets which has enabled a release of built-up work-in-progress inventory. 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 is on a 100% basis, except for the Gahcho Kué joint operation which is on an attributable 51% basis. As the midstream continues to hold higher than normal levels of inventory and the expectation for a recovery remains protracted, De Beers is actively assessing options with our partners to reduce production going forward. Unit cost is based on De Beers’ share of production.
(6) Production excludes thermal coal by-product. FOB unit cost comprises managed operations and excludes royalties. A planned longwall move at Moranbah is taking place during Q4 2024. A walk-on/walk-off longwall move at Aquila, that will have a minimal production impact, started initial commissioning in late Q3 and will occur during mid-Q4 2024.
(7) Nickel operations in Brazil only. The Group also produces approximately 20 kt of nickel on an annual basis from the PGM operations. Nickel production has been revised up reflecting strong operational performance and consequently, unit costs have been revised down.}

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) Average realised total iron ore price is a weighted average of the Kumba and Minas-Rio realised prices.
(4) 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 $96/t (Q3 YTD 2023: $112/t), higher than the dry 62% Fe benchmark price of $92/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) Realised price excludes trading.
(7) 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.
(8) Consolidated average realised price based on 100% selling value post-aggregation.
(9) Average of the De Beers price index for the Sights within the period. The De Beers price index is relative to 100 as at December 2006.
(10) Weighted average coal sales price achieved at managed operations. The average realised price for thermal coal by-product for Q3 YTD 2024, decreased by 24% to $118/t (Q3 YTD 2023: $156/t).
(11) Nickel realised price reflects the market discount for ferronickel (the product produced by the Nickel business).}

Notes

• This Production Report for the third quarter ended 30 September 2024 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.

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