Anglo American plc (LON:AAL) has announced its production report for the third quarter ended 30 September 2023
Duncan Wanblad, Chief Executive of Anglo American, said: “Production in the third quarter overall was consistent with the same period in 2022. A 42% increase in copper production as Quellaveco’s contribution ramps up was offset primarily by De Beers, as Venetia transitions to underground operations, and by performance at Moranbah and the Grosvenor ramp-up at the underground Steelmaking Coal operations.
“Our focus is on delivering our full year production guidance in line with a planned stronger second half of the year. Our production volumes increased by 4%(1) quarter-on-quarter, reflecting a step-up from our Steelmaking Coal operations driven by Aquila and at Grosvenor following the Q2 longwall move, operational improvements in the PGMs business and a progressive increase in volumes from Quellaveco. This was partially offset by planned maintenance programs at some operations and a planned reduction from Venetia, which continues to transition to underground operations. Copper production from Chile decreased due to ongoing ore hardness and an electrical substation fire at Los Bronces, resulting in a minor revision to guidance for our Chile operations. We are on track to deliver our full year guidance across all other products.”
Q3 2023 highlights
• Copper production increased by 42%, reflecting the progressive increase in production from Quellaveco in Peru, while production from our operations in Chile decreased by 4%.
• Production from our Platinum Group Metals (PGMs) operations was broadly flat despite planned mining in a lower grade area at Mogalakwena.
• Iron ore production decreased by 4%, principally driven by planned plant maintenance at Minas-Rio.
• Nickel production decreased by 7%, mainly reflecting the impact of lower grades.
• Steelmaking coal production decreased by 21%, reflecting challenging strata conditions at Moranbah and the ramp-up of Grosvenor during July following the longwall move in Q2.
• Rough diamond production decreased by 23%, primarily due to the planned reduction as Venetia transitions to underground operations.
| Production | Q3 2023 | Q3 2022 | % vs. Q3 2022 | YTD 2023 | YTD 2022 | % vs. YTD 2022 |
| Copper (kt)(2) | 209 | 147 | 42% | 596 | 420 | 42% |
| Nickel (kt)(3) | 9.3 | 10.0 | (7)% | 28.9 | 29.6 | (2)% |
| Platinum group metals (koz)(4) | 1,030 | 1,046 | (2)% | 2,874 | 3,034 | (5)% |
| Diamonds (Mct)(5) | 7.4 | 9.6 | (23)% | 23.9 | 26.5 | (10)% |
| Iron ore (Mt)(6) | 15.4 | 16.1 | (4)% | 46.1 | 43.6 | 6% |
| Steelmaking coal (Mt) | 4.4 | 5.5 | (21)% | 11.2 | 10.4 | 9% |
| Manganese ore (kt) | 1,012 | 973 | 4% | 2,823 | 2,756 | 2% |
(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. Copper equivalent production decreased by 1% compared to Q3 2022.
(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 5.4 kt of Q3 2023 nickel production from the Platinum Group Metals business).
(4) Produced ounces of metal in concentrate. 5E+Au (platinum, palladium, rhodium, ruthenium and iridium plus gold). Reflects own mined production and purchase of concentrate.
(5) De Beers Group 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
| 2023 production guidance | 2023 unit cost guidance(1) | ||
| Copper(2) | 830-870 kt | c.166 c/lb | |
| (previously 840-930 kt) | |||
| Nickel(3) | 38-40 kt | c.560 c/lb | |
| Platinum Group Metals(4) | 3.6-4.0 Moz | c.$1,000/oz | |
| Diamonds(5) | 30-33 Mct | c.$75/ct | |
| Iron Ore(6) | 57-61 Mt | c.$39/t | |
| Steelmaking Coal(7) | 16-19 Mt | c.$105/t | |
(1) Unit costs exclude royalties and depreciation and include direct support costs only. FX rates used for Q4 2023 costs: ~900 CLP:USD, ~3.9 PEN:USD, ~5.0 BRL:USD, ~19 ZAR:USD, ~1.6 AUD:USD (previously ~800 CLP:USD, ~3.7 PEN:USD, ~4.8 BRL:USD, ~18 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: c.520 kt (previously 530-580 kt) and Peru: 310-350 kt. Unit cost for Chile: c.205 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. Venetia continues to transition to underground operations. 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 for Kumba: c.$43/t and Minas-Rio: c.$33/t.
(7) Production excludes thermal coal by-product. FOB unit cost comprises managed operations and excludes royalties and study costs.
Realised prices
| Q3 YTD 2023 | Q3 YTD 2022 | Q3 YTD 2023 vs.Q3 YTD 2022 | |
| Copper (USc/lb)(1) | 387 | 377 | 3% |
| Copper Chile (USc/lb)(2) | 388 | 377 | 3% |
| Copper Peru (USc/lb) | 386 | 341 | 13% |
| Nickel (US$/lb) | 8.29 | 10.68 | (22)% |
| Platinum Group Metals | |||
| Platinum (US$/oz)(3) | 981 | 937 | 5% |
| Palladium (US$/oz)(3) | 1,437 | 2,107 | (32)% |
| Rhodium (US$/oz)(3) | 7,366 | 16,139 | (54)% |
| Basket price (US$/PGM oz)(4) | 1,766 | 2,627 | (33)% |
| Iron Ore – FOB prices(5) | 108 | 115 | (6)% |
| Kumba Export (US$/wmt)(6) | 110 | 115 | (4)% |
| Minas-Rio (US$/wmt)(7) | 106 | 114 | (7)% |
| Steelmaking Coal – HCC (US$/t)(8) | 264 | 324 | (19)% |
| Steelmaking Coal – PCI (US$/t)(8) | 215 | 279 | (23)% |
(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) Average realised total iron ore price is a weighted average of the Kumba and Minas-Rio realised prices.
(6) 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 $112/t (Q3 YTD 2022: $117/t), higher than the dry 62% Fe benchmark price of $102/t (FOB South Africa, adjusted for freight).
(7) Average realised export basket price (FOB Açu) (wet basis as product is shipped with ~9% moisture).
(8) Weighted average coal sales price achieved at managed operations. Australian thermal coal by-product for Q3 YTD 2023, decreased by 50% to $156/t (Q3 YTD 2022: $309/t).
Copper
| Copper(1) (tonnes) | Q3 | Q3 | Q3 2023 vs. Q3 2022 | Q2 | Q3 2023 vs. Q2 2023 | YTD | YTD | YTD 2023 vs. YTD 2022 |
| 2023 | 2022 | 2023 | 2023 | 2022 | ||||
| Copper | 209,100 | 146,800 | 42% | 209,100 | 0% | 596,300 | 420,200 | 42% |
| Copper Chile | 121,600 | 126,500 | (4)% | 130,800 | (7)% | 371,000 | 399,900 | (7)% |
| Copper Peru | 87,500 | 20,300 | n/a | 78,300 | 12% | 225,300 | 20,300 | n/a |
(1) Copper production shown on a contained metal basis. Reflects copper production from the Copper operations in Chile and Peru only (excludes copper production from the Platinum Group Metals business).
Copper production increased by 42% to 209,100 tonnes, due to the ramp-up of production from Quellaveco in Peru, while Chile’s production decreased by 4%.
Chile – Copper production decreased by 4% to 121,600 tonnes, driven by lower grade and throughput at Los Bronces, partially offset by planned higher grade at Collahuasi.
Production from Los Bronces decreased by 20% to 45,800 tonnes, primarily driven by lower grades (0.49% vs. 0.58%) and throughput, due to a combination of continued higher ore hardness and an electrical substation fire that interrupted plant facilities’ power supply for 16 days. The current unfavourable ore characteristics, including lower grade and higher ore hardness, in the current mining area will continue to impact operations until the next phase of the mine is accessed.
At Collahuasi, attributable production increased by 9% to 66,100 tonnes, driven by planned higher grades (1.19% vs. 1.08%) as well as higher throughput following the plant maintenance in Q2 2023.
Production from El Soldado increased by 5% to 9,700 tonnes, reflecting the benefit of mining in a higher grade area. However, this area had a known existing geotechnical fault line in the wall that was exacerbated by record levels of rain, with the production impact partially mitigated by processing lower grade ore from stockpiles. Mining operations have since resumed with a revised mine plan that aims to mitigate the ongoing risk of the geotechnical fault line.
The recent heavy rainfall in Chile´s central zone will reduce the need for alternative sources of water over the next couple of quarters. Towards the end of 2025, more than 45% of Los Bronces’ needs will be met through a desalinated water supply.
The year to date average realised price of 388 c/lb includes 146,000 tonnes of copper provisionally priced on 30 September at an average of 375 c/lb.
Peru – Quellaveco produced 87,500 tonnes, reflecting the progressive ramp-up in production volumes, with the plant achieving throughput beyond nameplate capacity more frequently during the quarter as the tailings dam develops according to plan.
The year to date average realised price of 386 c/lb includes 109,000 tonnes of copper provisionally priced on 30 September at an average of 375 c/lb.
2023 Guidance
Production guidance for 2023 is revised to 830,000-870,000 tonnes (previously 840,000-930,000 tonnes) (Chile’s guidance is revised to c.520,000 tonnes (previously 530,000-580,000 tonnes) due to unfavourable ore characteristics and an electrical substation fire at Los Bronces, as well as the impact of a geotechnical fault line on El Soldado’s production; Peru unchanged at 310,000-350,000 tonnes).
Unit cost guidance for 2023 is unchanged at c.166 c/lb(1) (Chile c.205 c/lb(1); Peru c.100 c/lb(1)).
(1) FX rate assumption for Q4 2023 costs of ~900 CLP:USD and ~3.9 PEN:USD (previously ~800 CLP:USD and ~3.7 PEN:USD).
| Copper(1) (tonnes) | Q3 | Q2 | Q1 | Q4 | Q3 | Q3 2023 vs. Q3 2022 | Q3 2023 vs. Q2 2023 | YTD | YTD | YTD 2023 vs. YTD 2022 |
| 2023 | 2023 | 2023 | 2022 | 2022 | 2023 | 2022 | ||||
| Total copper production | 209,100 | 209,100 | 178,100 | 244,300 | 146,800 | 42% | 0% | 596,300 | 420,200 | 42% |
| Total copper sales volumes | 211,700 | 203,100 | 185,900 | 242,700 | 132,900 | 59% | 4% | 600,700 | 397,800 | 51% |
| Copper Chile | ||||||||||
| Los Bronces mine(2) | ||||||||||
| Ore mined | 11,209,200 | 13,729,100 | 12,126,800 | 13,133,900 | 11,389,900 | (2)% | (18)% | 37,065,100 | 33,622,600 | 10% |
| Ore processed – Sulphide | 9,695,800 | 12,462,800 | 10,042,400 | 12,959,300 | 9,848,900 | (2)% | (22)% | 32,201,000 | 32,984,300 | (2)% |
| Ore grade processed -Sulphide (% TCu)(3) | 0.49 | 0.51 | 0.52 | 0.69 | 0.58 | (16)% | (4)% | 0.51 | 0.59 | (14)% |
| Production – Copper in concentrate | 38,600 | 52,800 | 44,000 | 74,100 | 46,400 | (17)% | (27)% | 135,400 | 157,400 | (14)% |
| Production – Copper cathode | 7,200 | 7,000 | 8,700 | 10,200 | 10,500 | (31)% | 3% | 22,900 | 29,200 | (22)% |
| Total production | 45,800 | 59,800 | 52,700 | 84,300 | 56,900 | (20)% | (23)% | 158,300 | 186,600 | (15)% |
| Collahuasi 100% basis(Anglo American share 44%) | ||||||||||
| Ore mined | 15,949,200 | 15,232,600 | 13,503,400 | 17,975,000 | 20,217,100 | (21)% | 5% | 44,685,200 | 64,247,600 | (30)% |
| Ore processed – Sulphide | 14,502,000 | 13,814,300 | 14,092,200 | 14,797,300 | 14,339,600 | 1% | 5% | 42,408,500 | 42,519,100 | 0% |
| Ore grade processed -Sulphide (% TCu)(3) | 1.19 | 1.09 | 1.05 | 1.08 | 1.08 | 10% | 9% | 1.11 | 1.12 | (1)% |
| Production – Copper in concentrate | 150,100 | 130,200 | 129,800 | 142,900 | 137,400 | 9% | 15% | 410,100 | 427,800 | (4)% |
| Anglo American’s 44% share of copper production for Collahuasi | 66,100 | 57,300 | 57,100 | 62,900 | 60,400 | 9% | 15% | 180,500 | 188,200 | (4)% |
| El Soldado mine(2) | ||||||||||
| Ore mined | 633,000 | 2,930,200 | 1,903,000 | 3,277,100 | 1,942,400 | (67)% | (78)% | 5,466,200 | 3,502,200 | 56% |
| Ore processed – Sulphide | 2,026,800 | 1,781,400 | 1,465,000 | 1,898,200 | 1,926,500 | 5% | 14% | 5,273,200 | 5,650,300 | (7)% |
| Ore grade processed -Sulphide (% TCu)(3) | 0.60 | 0.94 | 0.72 | 0.95 | 0.59 | 2% | (36)% | 0.75 | 0.55 | 36% |
| Production – Copper in concentrate | 9,700 | 13,700 | 8,800 | 15,100 | 9,200 | 5% | (29)% | 32,200 | 25,100 | 28% |
| Chagres smelter(2) | ||||||||||
| Ore smelted(4) | 28,600 | 27,800 | 29,000 | 23,400 | 25,700 | 11% | 3% | 85,400 | 77,200 | 11% |
| Production | 27,700 | 27,100 | 27,900 | 22,500 | 25,000 | 11% | 2% | 82,700 | 75,000 | 10% |
| Total copper production(5) | 121,600 | 130,800 | 118,600 | 162,300 | 126,500 | (4)% | (7)% | 371,000 | 399,900 | (7)% |
| Total payable copper production | 117,000 | 125,500 | 114,100 | 156,000 | 121,600 | (4)% | (7)% | 356,600 | 384,200 | (7)% |
| Total copper sales volumes | 120,300 | 120,700 | 116,900 | 170,500 | 127,600 | (6)% | 0% | 357,900 | 392,500 | (9)% |
| Total payable sales volumes | 115,600 | 117,100 | 112,300 | 164,000 | 122,200 | (5)% | (1)% | 345,000 | 376,600 | (8)% |
| Third-party sales(6) | 126,600 | 91,400 | 86,400 | 79,500 | 126,600 | 0% | 39% | 304,400 | 342,800 | (11)% |
| Copper Peru | ||||||||||
| Quellaveco mine(7) | ||||||||||
| Ore mined | 9,900,400 | 11,600,200 | 7,177,900 | 11,063,300 | 8,487,000 | 17% | (15)% | 28,678,500 | 16,367,700 | 75% |
| Ore processed – Sulphide | 11,240,600 | 9,660,800 | 7,042,200 | 8,851,800 | 2,867,600 | n/a | 16% | 27,943,600 | 2,867,600 | n/a |
| Ore grade processed -Sulphide (% TCu)(3) | 0.93 | 0.96 | 1.04 | 1.17 | 0.96 | (3)% | (3)% | 0.97 | 0.96 | 1% |
| Total copper production | 87,500 | 78,300 | 59,500 | 82,000 | 20,300 | n/a | 12% | 225,300 | 20,300 | n/a |
| Total payable copper production | 84,600 | 75,700 | 57,500 | 79,300 | 19,600 | n/a | 12% | 217,800 | 19,600 | n/a |
| Total copper sales volumes | 91,400 | 82,400 | 69,000 | 72,200 | 5,300 | n/a | 11% | 242,800 | 5,300 | n/a |
| Total payable sales volumes | 88,300 | 79,500 | 66,700 | 69,700 | 5,100 | n/a | 11% | 234,500 | 5,100 | n/a |
(1) Excludes copper production from the Platinum Group Metals business.
(2) Anglo American ownership interest of Los Bronces, El Soldado and the Chagres smelter is 50.1%. Production is stated at 100% as Anglo American consolidates these operations.
(3) TCu = total copper.
(4) Copper contained basis. Includes third-party concentrate. The Q1 and Q2 2023 ore smelted has been restated; H1 2023 was 56,800 tonnes.
(5) Total copper production includes Anglo American’s 44% interest in Collahuasi.
(6) Relates to sales of copper not produced by Anglo American operations.
(7) Anglo American ownership interest of Quellaveco is 60%. Production is stated at 100% as Anglo American consolidates this operation.
Nickel
| Nickel (tonnes) | Q3 | Q3 | Q3 2023 vs. Q3 2022 | Q2 | Q3 2023 vs. Q2 2023 | YTD | YTD | YTD 2023 vs. YTD 2022 |
| 2023 | 2022 | 2023 | 2023 | 2022 | ||||
| Nickel | 9,300 | 10,000 | (7)% | 9,900 | (6)% | 28,900 | 29,600 | (2)% |
Nickel production decreased by 7% to 9,300 tonnes, reflecting the impact of lower grades and planned maintenance at Barro Alto, despite operational improvements at Codemin.
2023 Guidance
Production guidance for 2023 is unchanged at 38,000-40,000 tonnes.
Unit cost guidance for 2023 is unchanged at c.560 c/lb(1).
| Nickel (tonnes) | Q3 | Q2 | Q1 | Q4 | Q3 | Q3 2023 vs. Q3 2022 | Q3 2023 vs. Q2 2023 | YTD | YTD | YTD 2023 vs. YTD 2022 |
| 2023 | 2023 | 2023 | 2022 | 2022 | 2023 | 2022 | ||||
| Barro Alto | ||||||||||
| Ore mined | 1,387,900 | 1,283,400 | 534,800 | 973,700 | 1,349,100 | 3% | 8% | 3,206,100 | 2,451,100 | 31% |
| Ore processed | 559,800 | 650,700 | 631,900 | 570,600 | 589,000 | (5)% | (14)% | 1,842,400 | 1,851,000 | 0% |
| Ore grade processed – %Ni | 1.48 | 1.46 | 1.36 | 1.51 | 1.52 | (3)% | 1% | 1.43 | 1.49 | (4)% |
| Production | 7,200 | 8,000 | 7,800 | 8,000 | 8,200 | (12)% | (10)% | 23,000 | 24,700 | (7)% |
| Codemin | ||||||||||
| Ore mined | – | – | 27,800 | 800 | – | n/a | n/a | 27,800 | – | n/a |
| Ore processed | 153,200 | 146,900 | 146,900 | 148,500 | 133,500 | 15% | 4% | 447,000 | 382,600 | 17% |
| Ore grade processed – %Ni | 1.44 | 1.42 | 1.34 | 1.48 | 1.46 | (1)% | 1% | 1.40 | 1.43 | (2)% |
| Production | 2,100 | 1,900 | 1,900 | 2,200 | 1,800 | 17% | 11% | 5,900 | 4,900 | 20% |
| Total nickel production(2) | 9,300 | 9,900 | 9,700 | 10,200 | 10,000 | (7)% | (6)% | 28,900 | 29,600 | (2)% |
| Sales volumes | 9,300 | 10,600 | 8,500 | 11,800 | 10,400 | (11)% | (12)% | 28,400 | 27,200 | 4% |
(1) FX rate assumption for Q4 2023 costs of ~5.0 BRL:USD (previously ~4.8 BRL:USD).
(2) Excludes nickel production from the Platinum Group Metals business.
Platinum Group Metals (PGMs)
| PGMs (000 oz)(1) | Q3 | Q3 | Q3 2023 vs. Q3 2022 | Q2 | Q3 2023 vs. Q2 2023 | YTD | YTD | YTD 2023 vs. YTD 2022 |
| 2023 | 2022 | 2023 | 2023 | 2022 | ||||
| Metal in concentrate production | 1,030 | 1,046 | (2)% | 943 | 9% | 2,874 | 3,034 | (5)% |
| Own mined(2) | 666 | 683 | (3)% | 613 | 9% | 1,865 | 1,993 | (6)% |
| Purchase of concentrate (POC)(3) | 364 | 363 | 0% | 330 | 10% | 1,009 | 1,041 | (3)% |
| Refined production(4) | 910 | 995 | (9)% | 1,074 | (15)% | 2,610 | 2,954 | (12)% |
(1) Ounces refer to troy ounces. PGMs consists of 5E+Au (platinum, palladium, rhodium, ruthenium and iridium plus gold).
(2) Includes managed operations and 50% of joint operation production.
(3) Includes the other 50% of joint operation production, as well as the purchase of concentrate from third parties.
(4) Refined production excludes toll refined material.
Metal in concentrate production
Own mined production decreased by 3% to 665,800 ounces, due to lower production from Mogalakwena and Amandelbult.
Production at Mogalakwena decreased by 5% to 246,800 ounces, primarily due to mining in a planned lower grade area. Production at Amandelbult decreased by 4% to 184,900 ounces, due to continued poor ground conditions. These were partly offset by joint operations which increased production by 2% to 97,500 ounces, mainly due to improved grade at Modikwa.
Purchase of concentrate was flat at 363,800 ounces.
Refined production
Refined production decreased by 9% to 909,700 ounces, primarily due to an unplanned municipal water stoppage at the processing complex in Rustenburg and lower metal in concentrate production.
Eskom load-curtailment had a minimal impact on production for the quarter, with less than 5,000 ounces deferred for future processing.
Sales
Sales volumes increased by 2%.
The year to date average realised basket price was $1,766/PGM ounce, reflecting lower market prices compared to the same period in 2022.
2023 Guidance
Production guidance (metal in concentrate) for 2023 is unchanged at 3.6-4.0 million ounces(1). Refined production guidance for 2023 is 3.6-4.0 million ounces, subject to the impact of Eskom load-curtailment.
Unit cost guidance for 2023 is unchanged at c.$1,000/PGM ounce(2).
(1) Metal in concentrate production is expected to be 1.6-1.8 million ounces of platinum, 1.2-1.3 million ounces of palladium and 0.8-0.9 million ounces of other PGMs and gold; with own mined output accounting for ~65%.
(2) FX rate assumption for Q4 2023 costs of ~19 ZAR:USD (previously ~18 ZAR:USD).
| Q3 | Q2 | Q1 | Q4 | Q3 | Q3 2023 vs. Q3 2022 | Q3 2023 vs. Q2 2023 | YTD | YTD | YTD 2023 vs. YTD 2022 | |
| 2023 | 2023 | 2023 | 2022 | 2022 | 2023 | 2022 | ||||
| M&C PGMs production (000 oz)(1) | 1,029.6 | 943.1 | 901.2 | 990.4 | 1,046.1 | (2)% | 9% | 2,873.9 | 3,033.6 | (5)% |
| Own mined | 665.8 | 612.7 | 586.0 | 656.6 | 683.2 | (3)% | 9% | 1,864.5 | 1,992.6 | (6)% |
| Mogalakwena | 246.8 | 242.4 | 219.0 | 256.7 | 259.3 | (5)% | 2% | 708.2 | 769.5 | (8)% |
| Amandelbult | 184.9 | 147.9 | 151.5 | 176.6 | 192.6 | (4)% | 25% | 484.3 | 535.9 | (10)% |
| Unki | 60.5 | 59.0 | 62.5 | 52.6 | 59.9 | 1% | 3% | 182.0 | 179.5 | 1% |
| Mototolo | 76.1 | 77.4 | 68.7 | 71.7 | 75.4 | 1% | (2)% | 222.2 | 218.2 | 2% |
| Joint operations(2) | 97.5 | 86.0 | 84.3 | 99.0 | 96.0 | 2% | 13% | 267.8 | 289.5 | (7)% |
| Purchase of concentrate | 363.8 | 330.4 | 315.2 | 333.8 | 362.9 | 0% | 10% | 1,009.4 | 1,041.0 | (3)% |
| Joint operations(2) | 97.5 | 86.0 | 84.3 | 99.0 | 96.0 | 2% | 13% | 267.8 | 289.5 | (7)% |
| Third parties | 266.3 | 244.4 | 230.9 | 234.8 | 266.9 | 0% | 9% | 741.6 | 751.5 | (1)% |
| Refined PGMs production (000 oz)(1)(3) | 909.7 | 1,073.8 | 626.0 | 877.2 | 994.8 | (9)% | (15)% | 2,609.5 | 2,953.9 | (12)% |
| By metal: | ||||||||||
| Platinum | 428.5 | 489.4 | 266.0 | 391.2 | 457.2 | (6)% | (12)% | 1,183.9 | 1,391.7 | (15)% |
| Palladium | 285.5 | 352.6 | 230.5 | 278.5 | 317.1 | (10)% | (19)% | 868.6 | 920.0 | (6)% |
| Rhodium | 57.1 | 68.4 | 38.8 | 51.7 | 64.8 | (12)% | (17)% | 164.3 | 197.5 | (17)% |
| Other PGMs and gold | 138.6 | 163.4 | 90.7 | 155.8 | 155.7 | (11)% | (15)% | 392.7 | 444.7 | (12)% |
| Nickel (tonnes) | 5,400 | 6,100 | 3,300 | 4,800 | 5,700 | (5)% | (11)% | 14,800 | 16,500 | (10)% |
| Tolled material (000 oz)(4) | 159.8 | 139.6 | 146.1 | 173.1 | 151.3 | 6% | 14% | 445.5 | 449.5 | (1)% |
| PGMs sales from production (000 oz)(1)(5) | 951.8 | 1,108.7 | 698.6 | 883.4 | 933.5 | 2% | (14)% | 2,759.1 | 2,977.9 | (7)% |
| Third-party PGMs sales (000 oz)(1)(6) | 1,220.9 | 1,153.0 | 912.2 | 789.6 | 403.4 | 203% | 6% | 3,286.1 | 1,060.3 | 210% |
| 4E head grade (g/t milled)(7) | 3.29 | 3.15 | 3.11 | 3.19 | 3.33 | (1)% | 4% | 3.18 | 3.30 | (4)% |
(1) M&C refers to metal in concentrate. Ounces refer to troy ounces. PGMs consists of 5E+Au (platinum, palladium, rhodium, ruthenium and iridium plus gold).
(2) The joint operations are Modikwa and Kroondal. Platinum owns 50% of these operations, which is presented under ‘Own mined’ production, and purchases the remaining 50% of production, which is presented under ‘Purchase of concentrate’.
(3) Refined production excludes toll material.
(4) Tolled volume measured as the combined content of: platinum, palladium, rhodium and gold, reflecting the tolling agreements in place.
(5) PGMs sales volumes from production are generally ~65% own mined and ~35% purchases of concentrate though this may vary from quarter to quarter.
(6) Relates to sales of metal not produced by Anglo American operations, and includes metal lending and borrowing activity.
(7) 4E: the grade measured as the combined content of: platinum, palladium, rhodium and gold, excludes tolled material. Minor metals are excluded due to variability.
De Beers
| De Beers(1) (000 carats) | Q3 | Q3 | Q3 2023 vs. Q3 2022 | Q2 | Q3 2023 vs. Q2 2023 | YTD | YTD | YTD 2023 vs. YTD 2022 |
| 2023 | 2022 | 2023 | 2023 | 2022 | ||||
| Botswana | 5,837 | 6,647 | (12)% | 5,829 | 0% | 18,565 | 18,352 | 1% |
| Namibia | 530 | 531 | 0% | 612 | (13)% | 1,761 | 1,547 | 14% |
| South Africa | 365 | 1,651 | (78)% | 466 | (22)% | 1,570 | 4,567 | (66)% |
| Canada | 676 | 741 | (9)% | 683 | (1)% | 2,032 | 1,988 | 2% |
| Total carats recovered | 7,408 | 9,570 | (23)% | 7,590 | (2)% | 23,928 | 26,454 | (10)% |
Rough diamond production decreased by 23% to 7.4 million carats, primarily due to the planned reduction in South Africa as Venetia transitions to underground operations and begins the ramp-up of production, as well as planned maintenance in Botswana.
In Botswana, production decreased by 12% to 5.8 million carats, driven by lower throughput at Orapa due to planned maintenance.
Production in Namibia was flat.
In South Africa, production decreased by 78% to 0.4 million carats, due to the planned end of Venetia’s open pit operations in December 2022. Venetia will continue to process lower grade surface stockpiles as the underground operations ramp-up production over the next few years.
Production in Canada decreased by 9% to 0.7 million carats, due to planned treatment of lower grade ore.
As a result of the uncertain macro-economic environment and high levels of diamond inventory in the midstream, Sightholders took a cautious approach to their purchasing during the quarter. Rough diamond sales totalled 7.4 million carats (6.7 million carats on a consolidated basis)(2) from three Sights, compared with 9.1 million carats (8.5 million carats on a consolidated basis)(2) from three Sights in Q3 2022, and 7.6 million carats (6.4 million carats on a consolidated basis)(2) from two Sights in Q2 2023.
Going forward, De Beers will continue to support its Sightholders to help re-establish equilibrium between wholesale supply and demand by providing full flexibility for rough diamond allocations in Sights 9 and 10 of 2023.
2023 Guidance
Production guidance(1) for 2023 is unchanged at 30-33 million carats (100% basis).
Unit cost guidance for 2023 is unchanged at c.$75/carat(3).
(1) De Beers Group production is on a 100% basis, except for the Gahcho Kué joint operation which is on an attributable 51% basis.
(2) Consolidated sales volumes exclude De Beers Group’s JV partners’ 50% proportionate share of sales to entities outside De Beers Group from the Diamond Trading Company Botswana and the Namibia Diamond Trading Company, which are included in total sales volume (100% basis).
(3) FX rate assumption for Q4 2023 costs of ~19 ZAR:USD (previously ~18 ZAR:USD).
| De Beers(1) | Q3 | Q2 | Q1 | Q4 | Q3 | Q3 2023 vs. Q3 2022 | Q3 2023 vs. Q2 2023 | YTD | YTD | YTD 2023 vs. YTD 2022 |
| 2023 | 2023 | 2023 | 2022 | 2022 | 2023 | 2022 | ||||
| Carats recovered (000 carats) | ||||||||||
| 100% basis (unless stated) | ||||||||||
| Jwaneng | 3,400 | 2,955 | 3,782 | 3,126 | 3,567 | (5)% | 15% | 10,137 | 10,319 | (2)% |
| Orapa(2) | 2,437 | 2,874 | 3,117 | 2,664 | 3,080 | (21)% | (15)% | 8,428 | 8,033 | 5% |
| Total Botswana | 5,837 | 5,829 | 6,899 | 5,790 | 6,647 | (12)% | 0% | 18,565 | 18,352 | 1% |
| Debmarine Namibia | 423 | 503 | 498 | 439 | 423 | 0% | (16)% | 1,424 | 1,286 | 11% |
| Namdeb (land operations) | 107 | 109 | 121 | 151 | 108 | (1)% | (2)% | 337 | 261 | 29% |
| Total Namibia | 530 | 612 | 619 | 590 | 531 | 0% | (13)% | 1,761 | 1,547 | 14% |
| Venetia | 365 | 466 | 739 | 948 | 1,651 | (78)% | (22)% | 1,570 | 4,567 | (66)% |
| Total South Africa | 365 | 466 | 739 | 948 | 1,651 | (78)% | (22)% | 1,570 | 4,567 | (66)% |
| Gahcho Kué (51% basis) | 676 | 683 | 673 | 827 | 741 | (9)% | (1)% | 2,032 | 1,988 | 2% |
| Total Canada | 676 | 683 | 673 | 827 | 741 | (9)% | (1)% | 2,032 | 1,988 | 2% |
| Total carats recovered | 7,408 | 7,590 | 8,930 | 8,155 | 9,570 | (23)% | (2)% | 23,928 | 26,454 | (10)% |
| Sales volumes | ||||||||||
| Total sales volume (100%) (Mct)(3) | 7.4 | 7.6 | 9.7 | 7.3 | 9.1 | (19)% | (3)% | 24.7 | 26.4 | (6)% |
| Consolidated sales volume (Mct)(3) | 6.7 | 6.4 | 8.9 | 6.6 | 8.5 | (21)% | 5% | 22.0 | 23.8 | (8)% |
| Number of Sights (sales cycles) | 3 | 2 | 3 | 2 | 3 | 8 | 8 |
(1) De Beers Group production is on a 100% basis, except for the Gahcho Kué joint operation which is on an attributable 51% basis.
(2) Orapa constitutes the Orapa Regime which includes Orapa, Letlhakane and Damtshaa.
(3) Consolidated sales volumes exclude De Beers Group’s JV partners’ 50% proportionate share of sales to entities outside De Beers Group from the Diamond Trading Company Botswana and the Namibia Diamond Trading Company, which are included in total sales volume (100% basis).
Iron Ore
| Iron Ore (000 t) | Q3 | Q3 | Q3 2023 vs. Q3 2022 | Q2 | Q3 2023 vs. Q2 2023 | YTD | YTD | YTD 2023 vs. YTD 2022 |
| 2023 | 2022 | 2023 | 2023 | 2022 | ||||
| Iron Ore | 15,397 | 16,060 | (4)% | 15,647 | (2)% | 46,120 | 43,599 | 6% |
| Kumba(1) | 9,736 | 9,977 | (2)% | 9,320 | 4% | 28,481 | 27,738 | 3% |
| Minas-Rio(2) | 5,661 | 6,083 | (7)% | 6,327 | (11)% | 17,639 | 15,861 | 11% |
(1) Volumes are reported as wet metric tonnes. Product is shipped with ~1.6% moisture.
(2) Volumes are reported as wet metric tonnes. Product is shipped with ~9% moisture.
Iron ore production decreased by 4% to 15.4 million tonnes, primarily due to a 7% decrease at Minas-Rio, driven by planned plant maintenance and a 2% decrease at Kumba.
Kumba – Total production decreased by 2% to 9.7 million tonnes, driven by a 6% decrease in Sishen’s production to 6.7 million tonnes due to high levels of finished stock at the mine as a result of third-party rail constraints. This was partially offset by a 6% increase at Kolomela to 3.1 million tonnes, as a result of improved operational stability and plant feedstock.
Total sales decreased by 11% to 8.9 million tonnes(1) primarily due to equipment failures at the port, operated by the third-party Transnet, which impacted ship loading as well as weather-related delays.
Total finished stock increased to 9.0 million tonnes(1), with stock at the port increasing to 1.8 million tonnes(1) (Q2 2023: 0.6 million tonnes(1)), which will support an efficient ramp-up in operations at the port following the Transnet annual shut-down for rail and port maintenance in October.
Kumba’s iron (Fe) content averaged 63.5% (YTD 2022: 63.9%), while the average lump:fines ratio was 66:34 (YTD 2022: 66:34).
The year to date average realised price of $110/tonne(1) (FOB South Africa, wet basis) was 10% higher than the 62% Fe benchmark price of $100/tonne (FOB South Africa, adjusted for freight and moisture), driven by the lump and Fe content quality premiums that the Kumba products attract.
Minas-Rio – Production decreased by 7% to 5.7 million tonnes, driven by planned plant maintenance.
The year to date average realised price of $106/tonne (FOB Brazil, wet basis) was 7% higher than the Metal Bulletin 65 price of $99/tonne (FOB Brazil, adjusted for freight and moisture), driven by the premium for our high quality product, including higher (~67%) Fe content.
2023 Guidance
Production guidance for 2023 is unchanged at 57-61 million tonnes (Kumba 35-37 million tonnes; Minas-Rio 22-24 million tonnes). Kumba is subject to third-party rail and port performance.
Unit cost guidance for 2023 is unchanged at c.$39/tonne(2) (Kumba c.$43/tonne(2); Minas-Rio c.$33/tonne(2)).
(1) Sales volumes, stock and realised price are reported on a wet basis and could differ to Kumba’s stand-alone results due to sales to other Group companies.
(2) FX rate assumption for Q4 2023 costs of ~19 ZAR:USD for Kumba and ~5.0 BRL:USD for Minas-Rio (previously ~18 ZAR:USD and ~4.8 BRL:USD).
| Iron Ore (000 t) | Q3 | Q2 | Q1 | Q4 | Q3 | Q3 2023 vs. Q3 2022 | Q3 2023 vs. Q2 2023 | YTD | YTD | YTD 2023 vs. YTD 2022 |
| 2023 | 2023 | 2023 | 2022 | 2022 | 2023 | 2022 | ||||
| Iron Ore production(1) | 15,397 | 15,647 | 15,076 | 15,682 | 16,060 | (4)% | (2)% | 46,120 | 43,599 | 6% |
| Iron Ore sales(1) | 14,748 | 15,781 | 14,546 | 13,887 | 15,799 | (7)% | (7)% | 45,075 | 44,099 | 2% |
| Kumba production | 9,736 | 9,320 | 9,425 | 9,961 | 9,977 | (2)% | 4% | 28,481 | 27,738 | 3% |
| Lump | 6,288 | 6,086 | 6,146 | 6,523 | 6,530 | (4)% | 3% | 18,520 | 18,148 | 2% |
| Fines | 3,448 | 3,234 | 3,279 | 3,438 | 3,447 | 0% | 7% | 9,961 | 9,590 | 4% |
| Kumba production by mine | ||||||||||
| Sishen | 6,680 | 6,442 | 6,341 | 7,010 | 7,085 | (6)% | 4% | 19,463 | 20,007 | (3)% |
| Kolomela | 3,056 | 2,878 | 3,084 | 2,951 | 2,892 | 6% | 6% | 9,018 | 7,731 | 17% |
| Kumba sales volumes(2) | ||||||||||
| Export iron ore(2) | 8,873 | 9,456 | 9,499 | 7,054 | 9,982 | (11)% | (6)% | 27,828 | 29,617 | (6)% |
| Minas-Rio production | ||||||||||
| Pellet feed | 5,661 | 6,327 | 5,651 | 5,721 | 6,083 | (7)% | (11)% | 17,639 | 15,861 | 11% |
| Minas-Rio sales volumes | ||||||||||
| Export – pellet feed | 5,875 | 6,325 | 5,047 | 6,833 | 5,817 | 1% | (7)% | 17,247 | 14,482 | 19% |
(1) Total iron ore is the sum of Kumba and Minas-Rio and reported in wet metric tonnes. Kumba product is shipped with ~1.6% moisture and Minas-Rio product is shipped with ~9% moisture.
(2) Sales volumes could differ to Kumba’s standalone results due to sales to other Group companies.
Steelmaking Coal
| Steelmaking Coal(1) (000 t) | Q3 | Q3 | Q3 2023 vs. Q3 2022 | Q2 | Q3 2023 vs. Q2 2023 | YTD | YTD | YTD 2023 vs. YTD 2022 |
| 2023 | 2022 | 2023 | 2023 | 2022 | ||||
| Steelmaking Coal | 4,356 | 5,510 | (21)% | 3,356 | 30% | 11,245 | 10,357 | 9% |
(1) Anglo American’s attributable share of production. Includes production relating to processing of third-party product.
Steelmaking coal production decreased by 21% to 4.4 million tonnes, impacted by challenging strata conditions at the Moranbah longwall operation and the ramp-up of Grosvenor during July following the longwall move in Q2. This was partially offset by higher production from the Capcoal open cut operation and the Aquila longwall.
During the quarter, the ratio of hard coking coal production to PCI/semi-soft coking coal was 74:26, lower than Q3 2022 (83:17), reflecting lower production from the underground longwall operations that produce premium hard coking coal.
The realised price differs from the average market price due to differences in material grade and timing of shipments. The year to date average realised price for hard coking coal was $264/tonne, compared to the benchmark price of $284/tonne. The year to date price realisation increased to 93% (YTD 2022: 82%), driven by higher sales volumes of premium hard coking coal from the underground longwall operations in 2023 and the impact of sales timing.
2023 Guidance
Production guidance for 2023 is unchanged at 16-19 million tonnes.
Unit cost guidance for 2023 is unchanged at c.$105/tonne(1).
(1) FX rate assumption for Q4 2023 costs of ~1.6 AUD:USD (previously ~1.5 AUD:USD).
| Coal, by product (000 t)(1) | Q3 | Q2 | Q1 | Q4 | Q3 | Q3 2023 vs. Q3 2022 | Q3 2023 vs. Q2 2023 | YTD | YTD | YTD 2023 vs. YTD 2022 |
| 2023 | 2023 | 2023 | 2022 | 2022 | 2023 | 2022 | ||||
| Production volumes | ||||||||||
| Steelmaking Coal(2)(3) | 4,356 | 3,356 | 3,533 | 4,650 | 5,510 | (21)% | 30% | 11,245 | 10,357 | 9% |
| Hard coking coal(2) | 3,235 | 2,358 | 2,842 | 3,647 | 4,562 | (29)% | 37% | 8,435 | 8,441 | 0% |
| PCI / SSCC | 1,121 | 998 | 691 | 1,003 | 948 | 18% | 12% | 2,810 | 1,916 | 47% |
| Export thermal coal | 284 | 481 | 284 | 428 | 424 | (33)% | (41)% | 1,049 | 1,217 | (14)% |
| Sales volumes | ||||||||||
| Steelmaking Coal(2)(3) | 4,226 | 3,585 | 3,334 | 4,233 | 5,245 | (19)% | 18% | 11,145 | 10,451 | 7% |
| Hard coking coal(2) | 3,199 | 2,681 | 2,699 | 3,114 | 4,289 | (25)% | 19% | 8,579 | 8,198 | 5% |
| PCI / SSCC | 1,027 | 904 | 635 | 1,119 | 956 | 7% | 14% | 2,566 | 2,253 | 14% |
| Export thermal coal | 387 | 390 | 402 | 473 | 480 | (19)% | (1)% | 1,179 | 1,208 | (2)% |
| Steelmaking coal, by operation (000 t)(1) | Q3 | Q2 | Q1 | Q4 | Q3 | Q3 2023 vs. Q3 2022 | Q3 2023 vs. Q2 2023 | YTD | YTD | YTD 2023 vs. YTD 2022 |
| 2023 | 2023 | 2023 | 2022 | 2022 | 2023 | 2022 | ||||
| Steelmaking Coal(2)(3) | 4,356 | 3,356 | 3,533 | 4,650 | 5,510 | (21)% | 30% | 11,245 | 10,357 | 9% |
| Moranbah(2) | 946 | 948 | 576 | 1,490 | 1,523 | (38)% | 0% | 2,470 | 1,905 | 30% |
| Grosvenor | 560 | 240 | 976 | 777 | 1,277 | (56)% | 133% | 1,776 | 2,259 | (21)% |
| Aquila (incl. Capcoal)(2) | 1,338 | 874 | 745 | 1,023 | 1,150 | 16% | 53% | 2,957 | 2,423 | 22% |
| Dawson | 688 | 576 | 520 | 584 | 741 | (7)% | 19% | 1,784 | 1,504 | 19% |
| Jellinbah | 824 | 718 | 716 | 776 | 819 | 1% | 15% | 2,258 | 2,266 | 0% |
| (1) Anglo American’s attributable share of production.(2) Includes production relating to processing of third-party product.(3) Steelmaking coal volumes exclude thermal coal by-product. | ||||||||||
Manganese
| Manganese (000 t) | Q3 | Q3 | Q3 2023 vs. Q3 2022 | Q2 | Q3 2023 vs. Q2 2023 | YTD | YTD | YTD 2023 vs. YTD 2022 |
| 2023 | 2022 | 2023 | 2023 | 2022 | ||||
| Manganese ore(1) | 1,012 | 973 | 4% | 970 | 4% | 2,823 | 2,756 | 2% |
(1) Anglo American’s attributable share of saleable production.
Manganese ore production increased by 4% to 1,012,100 tonnes, driven by improved mining performance and equipment reliability at the South African operations.
| Manganese (tonnes) | Q3 | Q2 | Q1 | Q4 | Q3 | Q3 2023 vs. Q3 2022 | Q3 2023 vs. Q2 2023 | YTD | YTD | YTD 2023 vs. YTD 2022 |
| 2023 | 2023 | 2023 | 2022 | 2022 | 2023 | 2022 | ||||
| Samancor production | ||||||||||
| Manganese ore(1) | 1,012,100 | 969,800 | 840,900 | 984,300 | 973,300 | 4% | 4% | 2,822,800 | 2,756,400 | 2% |
| Samancor sales volumes | ||||||||||
| Manganese ore | 971,500 | 937,900 | 823,600 | 954,700 | 834,400 | 16% | 4% | 2,733,000 | 2,641,500 | 3% |
(1) Anglo American’s attributable share of saleable production.
Exploration and evaluation
Exploration and evaluation expenditure was broadly flat at $90 million (Q3 2022: $87 million). Exploration expenditure decreased by 5% to $38 million. Evaluation expenditure increased by 11% to $52 million, primarily driven by higher spend in PGMs and steelmaking coal.
Corporate and other activities
Despite a strong focus on working capital through the second half of the year, opportunities to unwind the largely price-driven builds reported in the first half of the year have been limited. In addition, inventory at De Beers continues to build, reflecting weaker market sentiment.
Following a successful ramp-up, it is expected that Quellaveco will distribute ~$0.8 billion to its shareholders by the end of year, with the payment of Mitsubishi’s 40% share increasing the Group’s net debt.
Notes
• This Production Report for the third quarter ended 30 September 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.
