| Thu 30 Apr 2009, 8:00 | | AGL - Anglo American Plc - Interim Management Statement: Production Report for |
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AGL
ANAAL
AGL - Anglo American Plc - Interim Management Statement: Production Report for
the first quarter ended 31 March 2009
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")
Interim Management Statement: Production Report for the first quarter ended 31
March 2009
Overview
Platinum equivalent refined production in line with full year target; planned
higher rates of smelting for the balance of 2009 are in line with expected
refined platinum production of 2.4 million ounces for the year
Iron ore production in line with previous quarter and up 22% on the first
quarter of 2008 as Sishen jig plant continues to ramp up
Coal and diamond production reduced in response to lower anticipated demand
Copper production decreased due to lower ore grades at Los Bronces, partly
offset by higher production at Collahuasi
Balance sheet strengthened through series of measures to provide financial
flexibility:
$4.7 billion of new financing secured
$2 billion bond issued - strong demand and priced at bottom of range
$1.7 billion convertible bond issued - strong demand, 35% conversion premium and
priced below indicative range at 4% coupon
$1 billion BNDES loan finalised to finance Minas-Rio iron ore project
$1.8 billion of total cash proceeds from sale of residual stake in AngloGold
Ashanti - sold at a strong price
Undrawn committed bank facilities and cash increased to over $9 billion
Anglo American has taken a series of proactive measures in response to the
current economic environment and is positioned strongly to weather those
conditions and to deliver long term shareholder value through its existing
operations and its well funded growth pipeline of world class development
projects.
Results for the half year to 30 June 2009 will be announced on 3 August 2009.
This report forms Anglo American plc`s Interim Management Statement for the
purpose of the UK Listing Authority`s Disclosure and Transparency Rules.
PLATINUM Mar Mar Mar Q09 Mar Q09
2009 2008 vs. vs.
QTR QTR Mar Q08 Dec Q08
Refined
Platinum 000 oz 404 429 -5.8% -52.0%
Palladium 000 oz 235 246 -4.5% -47.9%
Rhodium 000 oz 74 58 27.6% -30.8%
Nickel t 3,300 3,700 -10.8% -19.5%
Equivalent refined
Platinum 000 oz 613 517 18.6% -6.1%
Platinum - Mining operations performed in line with the full year production
target during the first quarter, with equivalent refined platinum ounces from
mining and purchase of concentrate activities attributable to Anglo Platinum
increasing 18.6% to 613,000 ounces compared to the first quarter of 2008.
Refined production of 404,000 ounces in the first quarter decreased by 5.8%
compared to the first quarter of 2008. Refined production was reduced by
shutdowns for furnace maintenance at the Waterval and Polokwane smelters. At
the Polokwane smelter, the complete set of furnace lower copper coolers, in
service since 2005, was replaced. Higher than normal refined metal stocks at
the start of the quarter avoided any disruption of supply to the market.
Rhodium production, which was higher than the first quarter of 2008, was not
impacted by the shutdown at the Waterval smelter due to rhodium`s longer
processing time. Palladium and nickel production were lower in the period
relative to the first quarter of 2008 for the same reasons associated with
platinum production.
Following the decision in December 2008 to produce 2.4 million ounces of refined
platinum in 2009, a number of cost and value management initiatives were
implemented. Headcount has been reduced by 4,195 since December 2008, in line
with the announced reduction of 10,000 employees by the end of 2009. Mining
output at Mogalakwena has been reduced by 50%, with full concentrating
throughput being maintained from surface ore stockpiles. At Siphumelele Mine`s
Bleskop shaft in Rustenburg, the process to suspend mining operations has been
initiated and unions are being consulted.
Good progress was made in the period with the efficiency enhancing operational
restructuring at the Rustenburg and Amandelbult operations. The restructuring
was undertaken to establish separate entities that are more easily manageable
with an increased focus on costs and productivity.
BASE METALS Mar Mar Mar Q09 Mar Q09
2009 2008 vs. vs.
QTR QTR Mar Q08 Dec Q08
Copper t 151,000 159,700 -5.4% -12.2%
Nickel t 4,500 4,600 -2.2% -6.3%
Zinc t 82,800 82,900 -0.1% -0.1%
Copper - Production for the quarter was lower than Q1 2008 due to lower
production at Los Bronces as a result of the new mining plan which included
lower grade areas. This was partly offset by increased production at Collahuasi
due to higher operational stability at the concentrator plant and improved SAG
mill utilisation.
Production was lower than Q4 2008 due to the lower grades and recoveries at Los
Bronces and, at Collahuasi, due to a failure at the Coposa Norte water pipeline,
climate related energy cuts and lower primary crusher availability.
Nickel - Production for the quarter was lower than Q1 2008 due to maintenance
stoppages at the reduction furnace and lower grades at Codemin.
Production for the quarter was lower than Q4 2008, due to the suspension of
operations from 23rd December 2008 to 28th January 2009 at Loma de Niquel,
following the expiration of the slag deposition permit on 23rd November 2008,
which has still not been renewed. A temporary alternative operating and
deposition approach was developed which enabled operations to restart on 28th
January.
Zinc - Year to date production is broadly in line with the previous quarter and
prior year.
FERROUS METALS & INDUSTRIES Mar Mar Mar Q09 Mar Q09
2009 2008 vs. vs.
QTR QTR Mar Q08 Dec Q08
Iron ore 000 t 9,992 8,190 22.0% -1.0%
Manganese Ore 000 t 293 666 -56.0% -48.1%
Manganese Alloys 000 t 42 77 -45.5% -41.7%
Scaw Metals
South Africa products 000 t 179 206 -13.1% +7.2%
International products 000 t 219 213 +2.8% +1.9%
Iron ore - Total iron ore production increased 22% in the first quarter compared
to the previous year, to 10 million tonnes. This was mainly due to the
additional production delivered by the Sishen Mine`s jig plant, which continues
to ramp up. Kumba remains on schedule to achieve an annualised rate of 13Mtpa
from the Jig plant during the fourth quarter of 2009. Finished product
stockpiles have increased to 7.5Mt due to domestic iron ore sales falling below
contractual volumes and difficult export market conditions. Kumba continues to
monitor stock levels and market developments and, should conditions deteriorate,
production cuts will be considered.
Manganese - Production of both manganese ore and alloy decreased versus all
comparative periods, as previously announced production cuts were implemented in
response to weak market demand.
Scaw Metals - Production of South African steel products decreased 13.1%
compared to Q1 2008 due to lower demand for rolled, cast and wire rod products,
and increased 7.2% versus Q4 2008 due to the December seasonal plant shutdowns.
Production of International steel products increased 2.8% versus Q1 2008 and
1.9% versus Q4 2008.
COAL Mar Mar Mar Q09 Mar Q09
2009 2008 vs. vs.
QTR QTR Mar Q08 Dec Q08
Total
Eskom 000 t 8,438 8,363 +0.9% -10.9%
Thermal (1) 000 t 11,071 11,163 -0.8% -9.6%
Metallurgical 000 t 2,713 2,773 -2.2% -31.4%
South Africa
Eskom 000 t 8,438 8,363 +0.9% -10.9%
Thermal 000 t 5,112 4,798 +6.5% -10.4%
Metallurgical 000 t 220 216 +1.9% -3.9%
Australia
Thermal 000 t 3,211 3,374 -4.8% -20.7%
Metallurgical 000 t 2,315 2,468 -6.2% -32.1%
South America
Thermal 000 t 2,748 2,828 -2.8% +3.6%
Canada
Metallurgical 000 t 178 89 100.0% -43.6%
(1) Q1 2008 includes contribution from Peace River Coal in Canada which produced
163,000 t of thermal coal in the period
Coal - Demand for metallurgical and thermal coal weakened across many markets.
In order to align production with demand, production was reduced in Q1 2009
versus the previous quarter, but is in line with production for Q1 2008.
Eskom coal - Production was 10.9% lower than Q4 2008, in line with Eskom demand,
with power station stock levels approaching their relative capacities.
Thermal coal - Production was 9.6% lower than Q4 2008 due to reduced demand for
both domestic and export thermal coal. In Australia, this reduced demand has
been accommodated through selective stock building of premium grade coals and
opportunistic maintenance of key equipment at mining operations.
Metallurgical coal - Production was 31.4% lower than Q4 2008 in response to
lower demand from steel customers. This production cut was achieved through
closure of higher cost mines in Australia and selective restructuring of mining
activities at core operations.
DIAMONDS - Carats Mar Mar Mar Q09 Mar Q09
recovered
2009 2008 vs. vs.
QTR QTR Mar Q08 Dec Q08
Total 000 Carats 1,082 11,774 -90.8% -90.0%
In light of lower market demand, De Beers reduced production at all its mines
through a combination of production holidays and reducing shifts worked,
allowing sales from existing inventories in order that sales demand was met.
Second quarter 2009 production will increase as the major Debswana mines, which
accounted for over 65% of total De Beers production in 2008, recommenced
production in April 2009.
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 Q09 Mar Q09
Mar Dec Mar vs. vs.
2009 2008 2008 Dec Q08 Mar Q08
Platinum (refined) 000 oz 404 842 -52.0% -5.8%
429
Platinum (eq. 000 oz 613 653 517 -6.1% 18.6%
refined) (1)
Palladium 000 oz 235 451 -47.9% -4.5%
246
Rhodium 000 oz 74 107 -30.8% 27.6%
58
Nickel (Platinum) t 3,300 4,100 -19.5% -10.8%
3,700
Coal - Eskom 000 t 8,438 9,466 -10.9% 0.9%
8,363
Coal - thermal 000 t 11,071 12,247 -9.6% -0.8%
11,163
Coal - metallurgical 000 t 2,713 3,955 -31.4% -2.2%
2,773
Copper t 151,000 172,000 -12.2% -5.4%
159,700
Nickel t 4,500 4,800 -6.3% -2.2%
4,600
Zinc t 82,800 82,900 -0.1% -0.1%
82,900
Lead t 14,600 14,400 1.4% -14.6%
17,100
Iron ore (2) 000 t 9,992 10,098 -1.0% 22.0%
8,190
Manganese Ore (3) 000 t 293 565 -48.1% -56.0%
666
Manganese Alloys (3) 000 t 42 72 -41.7% -45.5%
(4) 77
000 t 179 167 206 7.2% -13.1%
South Africa Steel
products
000 t 219 215 213 1.9% 2.8%
International Steel
products
Diamonds recovered 1,082 10,795 -90.0% -90.8%
000 cts 11,774
(1) Equivalent refined platinum production
(2) Includes contribution of production of 669,000 tonnes from the Amapa iron
ore system in Brazil in Q1 2009 and 546,000 tonnes in Q4 2008.
(3) Saleable production
(4) Production includes Medium Carbon Ferro manganese
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
Caroline Metcalfe, Investor Relations
Tel: +44 (0)20 7968 2192
South Africa
Anna Poulter, Investor Relations
Tel: +27 (0)11 638 2079
Pranill Ramchander, Media Relations
Tel: +27 (0)11 638 2592
Notes to Editors:
Anglo American plc is one of the world`s largest mining 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)
30 April 2009
Sponsor: UBS South Africa (Pty) Ltd
Date: 30/04/2009 08:00:06 Produced by the JSE SENS Department.
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