| Tue 29 Apr 2008, 8:30 | | AGL - Anglo American Plc - Interim management stat |
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AGL
ANAAL
AGL - Anglo American Plc - Interim management statement for the quarter ended 31
March 2008
Anglo American Plc
Incorporated in the United Kingdom
(Registration number: 3564138)
Short name: Anglo
Share code: AGL
ISIN number: GB00B1XZS820
("Anglo American Plc" or "the company")
Review and Production Report
Interim Management Statement for the quarter ended 31 March 2008
First quarter overview
* Production increases in copper, zinc, iron ore, manganese ore, and
metallurgical coal versus prior year.
* Platinum remains on target for full year refined production of 2.4 million
ounces.
* Rhodium sales contracts renegotiated with improved pricing.
* Production in the first quarter, particularly of PGMs and coal, was
adversely affected by power supply constraints in South Africa and adverse
weather conditions in Australia and South Africa.
* Acquisition of 70% interest in Foxleigh mine completed in February 2008.
Integration underway and first month production contribution of 78,000
tonnes of metallurgical coal.
* Anglo American to acquire control of the Minas-Rio and Amapa iron ore
projects in Brazil.
* On 20 February, the South African Department of Minerals and Energy and
Anglo American confirmed agreement on all remaining matters regarding
mining rights conversions, subject to completion of outstanding
documentation.
* Anglo American`s energy task team continues to address critical issues in
relation to power supply constraints in South Africa, focusing on short
term supply constraints, enhanced emergency power provisions and
supplementary power generation for the short, medium and longer term
requirements of mining operations.
There has been no material change to the financial position of the Group since
31 December 2007.
Interim results for the half year to 30 June will be announced on 31 July 2008.
This report forms Anglo American plc`s Interim Management Statement for the
purpose of the UK Listing Authority`s Disclosure and Transparency Rules.
Production report
PLATINUM Mar Mar Mar Q08
2008 2007 vs.
QTR QTR Mar Q07
Platinum(1) 000 oz 517.5 638.1 -18.9%
Platinum 000 oz 428.6 565.1 -24.2%
Palladium 000 oz 245.8 326.8 -24.8%
Rhodium 000 oz 57.5 78.4 -26.7%
Nickel 000 t 3.7 5.0 -26.0%
(1) Equivalent refined platinum production
Platinum, Palladium, Rhodium and Nickel - Platinum production from the mines
managed by Anglo Platinum and its joint venture partners (equivalent refined
platinum production) for Q1 2008 decreased 18.9% when compared to Q1 2007. The
main factors affecting production included electricity supply constraints
experienced in January and February and the associated ramp up period when
supply resumed; the disruption of operations at the Amandelbult mine as a result
of underground working areas being flooded; and higher than planned mining from
the lower grade North pit of the Mogalakwena (formerly Potgietersrust or
"PPRust") mine.
Refined platinum production decreased by 24.2% as a result of the above and an
increase in pipeline stocks caused by repair work at the Polokwane Smelter and
power supply constraints. The repair work has been completed and normal smelting
operations have resumed.
The Kroondal concentrate off-take agreement with Impala was completed, as
expected, in Q1 2008, resulting in increased concentrate ounces delivered to the
smelters.
During the quarter, the terms of Anglo Platinum`s rhodium sales contracts that
impact the portion of sales being made at prices significantly below the spot
price were renegotiated. As a result of the revised contract terms, the specific
details of which are subject to contractual confidentiality, the price to be
received by Anglo Platinum will change during 2008 and 2009. Should the current
spot price of rhodium of $9,000 per ounce and rhodium production at the 2007
level of approximately 330,000 ounces remain constant for the remainder of 2008
and for 2009, the impact of the contract renegotiations will result in an
increase in Anglo Platinum`s after tax earnings of approximately $213 million in
2008 and a further $384 million in 2009 (earnings impact examples unaudited).
BASE METALS Mar Mar Mar Q08
2008 2007 vs.
QTR QTR Mar Q07
Copper t 159,733 146,387 +9.1%
Nickel t 4,622 6,462 -28.5%
Zinc t 82,877 82,072 +1.0%
Copper - Production for the quarter was higher than Q1 2007 due to improved
grades at Los Bronces. Adverse weather conditions in January 2008 and earlier
than scheduled maintenance impacted production at Collahuasi. The hardness of
the Donoso Este ore reduced throughput at Los Bronces.
Nickel - Year to date production has been impacted by the strike action which
started on 22 February 2008 at Loma de Niquel and halted production for the
month of March. The duration of the strike was 35 days and partial production
resumed in the first half of April.
Zinc - Year to date production is higher than the same period in 2007 mainly as
a result of higher grades at Lisheen and the resolution of the various
operational issues at Black Mountain which impacted production in 2007.
However, there was reduced output at Skorpion in Q1 2008, mainly due to power
shedding in South Africa.
FERROUS METALS & INDUSTRIES Mar Mar Mar Q08
2008 2007 vs.
QTR QTR Mar Q07
Iron ore 000 t 8,190 7,638 +7.2%
- Lump 000 t 4,888 4,495 +8.7%
- Fines 000 t 3,302 3,143 +5.1%
Manganese ore 000 t 666 581 +14.6%
Manganese alloys 000 t 77 78 -1.3%
Iron ore - Total iron ore production increased 7.2% in Q1 2008 to 8.2 million
tonnes. This was mainly due to the additional production delivered by the
Sishen Expansion Project which was commissioned towards the end of 2007.
Manganese ore - Record production achieved in Q1 2008 with improvement versus Q1
2007 due to record or near record performance from all operations. This was
achieved despite a mandatory 10% reduction in power consumption for the South
African sinter plant and weather related interruptions at GEMCO in Australia.
Manganese alloys - Production in Q1 2008 was 1.3% lower than Q1 2007, impacted
by the mandatory 10% reduction in power consumption in South Africa.
COAL - Total(1) Mar Mar Mar Q08
2008 2007 vs.
QTR QTR Mar Q07
Eskom 000 t 8,363 8,670 -3.5%
Thermal 000 t 11,163 11,629 -4.0%
Metallurgical 000 t 2,773 2,644 +4.9%
TOTAL 000 t 22,299 22,943 -2.8%
(1) Includes contribution from Peace River Coal which commenced production at
the end of 2007, producing 163,000 t thermal and 89,000 t metallurgical coal for
the period.
COAL - South Africa Mar Mar Mar Q08
2008 2007 vs.
QTR QTR Mar Q07
Eskom 000 t 8,363 8,670 -3.5%
Thermal 000 t 4,798 5,948 -19.3%
Metallurgical 000 t 216 335 -35.5%
Eskom coal - Production decreased by 3.5% on Q1 2007 following heavy rainfall in
the quarter, which impacted open pit production at Kriel in particular.
Thermal coal - Production has been impacted by power shortages in Q1 2008,
resulting in a decline in volumes against the prior year.
COAL - Australia Mar Mar Mar Q08
2008 2007 vs.
QTR QTR Mar Q07
Thermal 000 t 3,374 3,118 +8.2%
Metallurgical 000 t 2,468 2,309 +6.9%
Thermal coal - The increase of 8.2% versus Q1 2007 was principally due to
additional volumes at Dawson, following ramp up of the expansion project at the
mine.
Metallurgical coal - Production in Q1 2008 was higher than Q1 2007, despite the
severe flooding in Central Queensland in the quarter. The increased volumes are
principally due to the productivity improvements at the metallurgical coal
underground mines, the ramp up of the Dawson expansion project and the first
month`s contribution from Foxleigh, following completion of the acquisition. In
any given calendar year, a significant percentage of metallurgical coal sales
are priced at the previous fiscal year settlement prices due to the overlap of
calendar and fiscal years; however, a significant amount of metallurgical coal
sales for 2008 remain unpriced.
COAL - South America Mar Mar Mar Q08
2008 2007 vs.
QTR QTR Mar Q07
Thermal 000 t 2,828 2,563 +10.3%
Thermal coal - Production in South America increased by 10.3% versus Q1 2007,
reflecting less rainfall, better equipment utilisation and improved recovery at
Cerrejon.
DIAMONDS - Carats recovered Mar Mar Mar Q08
2008 2007 vs.
QTR QTR Mar Q07
Total 000 carats 11,774 12,632 -6.8%
Production in Q1 2008 was lower than Q1 2007 principally as a result of fewer
carats recovered at Venetia. This was due to power shortages and unplanned
maintenance.
Production summary
The figures below include the entire output of consolidated entities and the
Group`s share of joint ventures, joint arrangements and associates where
applicable, except for De Beers, which is quoted on a 100% basis.
Quarter ended Change
Mar Q08
Mar Mar vs.
2008 2007 Mar Q07
Anglo Platinum(1)
Platinum 000 oz 428.6 565.1 -24.2%
Palladium 000 oz 245.8 326.8 -24.8%
Rhodium 000 oz 57.5 78.4 -26.7%
Nickel 000 t 3.7 5.0 -26.0%
Copper 000 t 2.1 3.0 -30.0%
Gold 000 oz 23.7 26.8 -11.6%
Anglo Base Metals
Copper t 159,733 146,387 +9.1%
Molybdenum t 733 893 -17.9%
Nickel t 4,622 6,462 -28.5%
Zinc t 82,877 82,072 +1.0%
Lead t 17,110 16,903 +1.2%
Anglo Ferrous Metals
Iron ore 000 t 8,190 7,638 +7.2%
Manganese Ore 000 t 666 581 +14.6%
Manganese Alloys 000 t 77 78 -1.3%
Anglo Coal
Eskom 000 t 8,363 8,670 -3.5%
Thermal 000 t 11,163 11,629 -4.0%
Metallurgical 000 t 2,773 2,644 +4.9%
De Beers
Diamonds recovered 000 carats 11,774 12,632 -6.8%
(1) Production volumes for 2007 and 2008 exclude the contribution of Northam
Platinum Limited (a 22.5% associate of Anglo Platinum) which was transferred to
a disposal group on 30 September 2007.
Project report
Selected major growth and replacement projects
As reported at the year end, Anglo American has major growth and replacement
projects under development totalling $12 billion, on an attributable basis,
across all business units and geographies. The Group is considering further
major projects with an estimated potential cost of around $29 billion.
Selected major approved projects
Project Count First Cape Produc Status
ry product x $m tion
ion (100 volume
date %) (1)
Platinum
Mogalakw South In 692 230 Plant
ena Afric product kozpa commissioned in
North a ion refine March 2008.
expansio d Production ramp-
n platin up continues.
um
Twickenh South 2012 800 180 Project approved
am Afric (2) kozpa in February
expansio a refine 2008.
n d
platin
um
Base
Metals
Barro Brazi 2010 36 Under
Alto l 1,50 ktpa construction and
0 nickel on schedule for
first production
in 2010.
Los Chile 2011 170 Under
Bronces 1,70 ktpa construction and
expansio 0 copper on schedule for
n (3) first production
in 2011.
Ferrous Metals
Sishen South In 754 13 Mtpa Commissioned in
Expansio Afric product iron Q4 2007.
n a ion ore
MMX Brazi 2010 26.5 Under
Minas- l 3,45 Mtpa construction.
Rio 6 iron 49% stake
phase 1 ore acquired in
pellet July 2007.
feed Agreement
(wet signed to
base)(4 acquire control
) of Minas-Rio
iron ore
project and
Amapa iron ore
mine, announced
31 March 2008.
Selected major approved projects continued
Project Count First Capex Produc Status
ry product $m tion
ion (100% volume
date ) (1)
Coal
Dawson Austr In 835 5.7 Commissioned in
alia product Mtpa Q4 2007.
ion coking
, semi-
soft
and
therma
l
Lake Austr In 726 4.0 Development
Lindsay alia product Mtpa progressing,
ion coking completion
and estimated
semi- during second
soft half of 2008.
Zondagsf South 2009 505 6.6 On schedule for
ontein Afric Mtpa first
implemen a therma production in
tation l 2009.
Diamonds
Snap Canad In 997 1.6 M Full production
Lake a product carats expected during
ion pa 2008.
Victor Canad 2008 0.6 M Expected to
a 1,021 carats enter
pa production by
mid-2008.
Production represents 100% of average incremental or replacement production, at
full production, unless otherwise stated.
Nominal basis. Capex of $735 million disclosed at 31 December 2007 on a real
basis.
Average volume over first 10 years of project.
MMX Minas-Rio phase 1 is also expected to produce 0.8 Mtpa lump iron ore.
Forward looking statements:
This Interim Management Statement contains certain forward looking statements
which involve risk and uncertainty because they relate to events and depend on
circumstances that occur in the future. There are a number of factors that
could cause actual results or developments to differ materially from those
expressed or implied by these forward looking statements.
For further information, please contact:
United Kingdom
James Wyatt-Tilby, Media Relations
Tel: +44 (0)20 7968 8759
Anna Poulter, Investor Relations
Tel: +44 (0)20 7968 2155
Ralf Rueller, Investor Relations
Tel : +44 (0)20 7968 8878
South Africa
Pranill Ramchander, Media Relations
Tel: +27 (0)11 638 2592
Notes to Editors:
Anglo American plc is one of the world`s largest mining and natural resource
groups. With its subsidiaries, joint ventures and associates, it is a global
leader in platinum group metals and diamonds, with significant interests in
coal, base and ferrous metals, as well as an industrial minerals business. The
Group is geographically diverse, with operations in Africa, Europe, South and
North America, Australia and Asia. (www.angloamerican.co.uk)
Date: 29/04/2008 08:30:05 Produced by the JSE SENS Department.
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