Anglo American plc Production Report for the third quarter ended 30 September 2020
Mark Cutifani, Chief Executive of Anglo American, said: 'Anglo American has continued its strong operational recovery, with a 24%(1) increase in production compared to Q2. We are currently operating at about 95%(2) of our normal capacity - testament to our efforts to protect operational continuity across our business, whilst maintaining comprehensive measures across our operations to safeguard the lives and livelihoods of our workforce and host communities, as part of our holistic response to Covid-19.
'Continued strong performance at the Collahuasi copper operation in Chile helped mitigate our overall year-on-year production decrease to 3%(1) compared to Q3 2019, despite planned maintenance at Minas-Rio iron ore in Brazil and excluding the effect of the suspended Grosvenor metallurgical coal operation in Australia.
'We have also seen encouraging improvement in demand for rough diamonds as we approach the holiday selling season, although there is still some uncertainty in terms of the timing of a sustained recovery.'
Copper production increased by 4% as Collahuasi in Chile increased production by 17% due to ongoing strong performance.
PGMs production was broadly flat as a strong performance from the open pit Mogalakwena mine, with 12% higher palladium production, largely mitigated lower production from the underground Amandelbult.
In Iron ore, the pipeline inspection and maintenance at Minas-Rio in Brazil was completed successfully and on schedule, with operations restarted in early October.
Rough diamond sales improved ahead of the key Q4 holiday selling season for diamond jewellery.
% vs. Q3 2019
% vs. YTD 2019
Iron ore - Kumba (Mt)
Iron ore - Minas-Rio (Mt)(6)
Metallurgical coal (Mt)
Thermal coal (Mt)(7)
Manganese ore (kt)
(1) Excludes the impact of the Grosvenor suspension. Including the impact of Grosvenor, copper equivalent production increased 21% compared to Q2 2020 and decreased 7% compared to Q3 2019. (2) Excludes the impact of the Grosvenor suspension and the strike at Cerrejón. (3) De Beers production is on a 100% basis, except for the Gahcho Kué joint venture which is on an attributable 51% basis. (4) Contained metal basis. Reflects copper production from the Copper business unit only (excludes copper production from the Platinum Group Metals business unit). (5) Produced ounces of metal in concentrate. Reflects own mine production and purchase of concentrate. (6) Volumes are reported as wet metric tonnes. Product is shipped with ~9% moisture. (7) Reflects export primary production, secondary production sold into export markets and production sold domestically at export parity pricing from South Africa, and attributable export production (33.3%) from Colombia. (8) Reflects nickel production from the Nickel business unit only (excludes nickel production from the Platinum Group Metals business unit).
This Production Report for the third quarter ended 30 September 2020 is unaudited.
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, development projects and undeveloped resources, provides many of the metals and minerals that enable a cleaner, greener, more sustainable world and that meet the fast growing consumer-driven demands of developed and maturing economies. With our people at the heart of our business, we use innovative practices and the latest technologies to mine, process, move and market our products to our customers - and to discover new resources - safely and sustainably.
As a responsible producer of diamonds (through De Beers), copper, platinum group metals, the steelmaking ingredients of iron ore and metallurgical coal, and nickel - with crop nutrients in development and thermal coal operations planned for divestment - we are committed to being carbon neutral across our operations by 2040. We work together with our business partners and diverse stakeholders to unlock sustainable 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.
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 (including development plans and objectives relating to Anglo American's products, production forecasts and Ore Reserves and Mineral Resource estimates), 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, mineral resource exploration and development capabilities, recovery rates and other operational capabilities, the effects of global pandemics and outbreaks of infectious diseases, sustainability aspirations, the availability of mining and processing equipment, the ability to produce and transport products profitably, the availability of transportation infrastructure, the impact of foreign currency exchange rates on market prices and operating costs, the availability of sufficient credit, the effects of inflation, political uncertainty and economic conditions in relevant areas of the world, the actions of competitors, activities by governmental authorities such as permitting 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.
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Anglo American plc published this content on 22 October 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 22 October 2020 06:04:09 UTC