Anglo American delivers strong Q2 performance overall

Anglo American, reports it has delivered a strong second quarter performance overall as it continues to embed operational excellence across the asset base. Minas-Rio achieved record second quarter production, while our copper operations in Chile and Peru both performed well against its plans. Anglo American is focused on continuing to deliver its strategic priority of operational excellence – improving performance stability is driving increased confidence in operational plans, including production volumes and unit costs.

Duncan Wanblad, Chief Executive of Anglo American, said: “De Beers’ diamond production reflects the lower revised guidance announced in our first quarter production report. Trading conditions became more challenging in the second quarter as Chinese consumer demand remained subdued. With higher than normal levels of inventory remaining in the midstream and an expectation for a protracted recovery, we are therefore actively assessing options with our partners to further reduce production to manage our working capital and preserve cash.

“At the end of June, the Grosvenor mine experienced an underground fire and the workforce was safely evacuated without injury. As a result of the incident, the operation is suspended and Grosvenor’s production is excluded from the Steelmaking Coal guidance for the second half of the year.

“In May, we announced our plan to accelerate our strategy by simplifying the portfolio and focusing on our world-class assets in copper, premium iron ore and crop nutrients. We are working at pace to execute on the asset divestments, including Steelmaking Coal – with the intention of optimising value for our shareholders, while minimising frictional costs, mitigating execution risks, and enabling the delivery of significant sustainable cost savings. Work is progressing with the aim of substantively completing this transformation by the end of 2025.”

Q2 2024 highlights

• Copper production is tracking well to our full year plan and is 2% higher than the first half of 2023, with the 6% decrease in the second quarter driven by lower throughput at Los Bronces and El Soldado, and planned lower grades at Quellaveco, partially offset by higher throughput at Collahuasi driven by the fifth ball mill.
• Minas-Rio achieved a record second quarter performance, offset by a planned decrease at Kumba to align with third-party logistics constraints, resulting in flat production year-on-year for the iron ore businesses.
• Production from our Platinum Group Metals (PGMs) operations was 2% lower, reflecting expected lower volumes from Kroondal (which is reported as third-party purchase of concentrate from November 2023) and lower production at Mototolo, Mogalakwena and Unki, partially offset by 7% higher production at Amandelbult.
• Steelmaking coal production increased by 26%, driven by higher production from the Grosvenor underground mine and at the Dawson open cut operation, partially offset by challenging strata conditions at the Aquila underground longwall and higher waste tonnes extracted at the Capcoal open cut operation. As a result of the underground fire at Grosvenor, the operation is currently suspended and Grosvenor’s production is excluded from Steelmaking Coal guidance for the second half of the year. The new guidance range for the year is 14-15.5 million tonnes, with unit costs revised to $130-140/tonne(1).
• Rough diamond production decreased by 15%, driven by a proactive approach to manage inventory and preserve cash.
• Nickel production was broadly flat, reflecting operational stability.