| Thu 22 Apr 2010, 8:15 | | AGL - Anglo American plc - Interim Management Statement - Production Report |
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AGL
ANAAL
AGL - Anglo American plc - Interim Management Statement - Production Report
for the first quarter ended 31 March 2010
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 2010
Overview
- Iron ore production increased by 23% to 12.3 million tonnes as Sishen`s
jig plant continues to ramp up to full production
- Platinum refined production increased by 11% to 447,000 ounces, on track
to meet full year target of 2.5 million ounces, with upside flexibility
to meet market demand
- Unit costs on track to remain flat vs. 2009
- Further labour productivity increase; improved by 17% since Q1 2009
- Copper production increased by 7% to 161,000 tonnes, due to higher grades
and recoveries at Los Bronces and higher grades and throughput at
Collahuasi
- Nickel (1) production increased by 7% to 4,800 tonnes
- Metallurgical coal production increased by 32% to 3.6 million tonnes
- Thermal coal production decreased by 2% to 19.2 million tonnes
- Diamond production increased to 7 million carats to meet strengthening
market demand
- Major divestment programme progressing well
- Zinc sale process well advanced and highly competitive
- Tarmac Polish Concrete Products sale completed and Tarmac European
Aggregates sale agreed, for an aggregate consideration of
approximately $400 million
- Anglo Platinum and De Beers rights issues successfully completed,
supported by Anglo American. Strong demand for $1.7 billion Anglo
Platinum rights issue, with minority shareholders over-subscribing by
almost 3 times.
Results for the half year to 30 June 2010 will be announced on 30 July 2010.
This report forms Anglo American plc`s Interim Management Statement for the
purpose of the UK Listing Authority`s Disclosure and Transparency Rules.
(1) Nickel production from the Nickel Business Unit.
Q1 2010 Production Summary by Business Unit
Platinum Q1 Q1 Q1 2010 Q4 Q1 2010
2010 2009 vs. 2009 vs.
Q1 2009 Q4 2009
Refined
Platinum 000 oz 447 404 11% 766 -42%
Palladium 000 oz 247 235 5% 426 -42%
Rhodium 000 oz 62 74 -16% 94 -34%
Nickel t 4,400 3,300 33% 5,300 -17%
Equivalent refined
Platinum 000 oz 595 613 -3% 604 -1%
Platinum - Refined production increased by 11% to 446,700 ounces. Processing
performance was in line with expectations during the quarter, with the planned
Polokwane Smelter furnace re-build completed successfully, ahead of schedule.
Anglo Platinum continues to target full year production of 2.5 million ounces
of refined platinum and retains the flexibility to increase that level to meet
market demand.
Equivalent refined platinum ounces from mining and purchase activities were
594,700 ounces for the quarter. Production in Q1 2009 included some 31,000
equivalent refined platinum ounces from higher cost operations that were
placed on care and maintenance during Q2 and Q3 2009.
Palladium, Rhodium & Nickel - Refined production of palladium and nickel
increased by 5% and 33% respectively, whilst rhodium decreased by 16%. The
increases vary due to a different source mix from operations and different
pipeline processing times per metal.
Copper Q1 Q1 Q1 2010 Q4 Q1 2010
2010 2009 vs. 2009 vs.
Q1 2009 Q4 2009
Copper t 160,800 150,500 7% 185,900 -14%
Copper - Production increased by 7% to 160,800 tonnes. Collahuasi benefited
from improved grades and higher throughput levels. Production at Los Bronces
increased as a result of higher grades and recovery. These increases were
partially offset by lower production at Mantos Blancos, primarily due to a
conveyor belt failure.
Production decreased by 14% compared to Q4 2009, principally due to lower ore
grades at Los Bronces and Collahuasi. At Collahuasi, lower throughput as a
result of high clay content and scheduled mill stoppages also impacted
production.
Nickel Q1 Q1 Q1 2010 Q4 Q1 2010
2010 2009 vs. 2009 vs.
Q1 2009 Q4 2009
Nickel t 4,800 4,500 7% 4,900 -2%
Nickel - Production increased by 7% compared to Q1 2009, when production was
impacted by maintenance stoppages at the Codemin reduction furnace and by the
temporary suspension of operations at Loma de Niquel following the expiration
of the slag deposition permit.
Iron Ore and Manganese Q1 Q1 Q1 2010 Q4 Q1 2010
2010 2009 vs. 2009 vs.
Q1 2009 Q4 2009
Iron ore 000 t 12,328 9,992 23% 12,407 -1%
Manganese ore 000 t 684 293 133% 615 11%
Manganese alloys 000 t 68 42 62% 52 31%
Iron ore - Total production increased by 23% to 12.3Mt and was flat compared
to Q4 2009. Sishen Mine`s production increased by 0.3Mt compared to Q4 2009
to 11.0Mt. The 3.3Mt produced by the jig plant accounted for 30% of Sishen
Mine`s production.
Production from the jig plant increased by 7% or 0.2Mt compared to Q4 2009.
The ramp up of the jig plant to produce 12.5-13Mt during 2010 continues as
planned.
Production from Thabazimbi Mine decreased by 23% compared to Q4 2009, to
0.5Mt.
Demand for iron ore continues to recover in Europe, Japan and Korea which
coupled with continued strong demand from China, resulted in Kumba`s export
sales in the quarter of 9.3Mt, an increase of 21% on Q4 2009.
Manganese ore - Production increased by 133% as market conditions continued to
recover during the quarter. Samancor is operating at close to full capacity.
Manganese alloys - Production increased by 62% as market conditions continued
to recover during the quarter.
Metallurgical Coal Q1 Q1 Q1 2010 Q4 Q1 2010
2010 2009 vs. 2009 vs.
Q1 2009 Q4 2009
Production
Export 000 t 3,282 2,315 42% 3,806 -14%
metallurgical
Thermal 000 t 3,350 3,212 4% 3,487 -4%
Weighted average
achieved FOB prices
Export US$/t 131 203 -35% 123 7%
metallurgical
Export thermal US$/t 79 84 -6% 67 18%
Domestic thermal US$/t 31 23 35% 30 3%
Attributable sales volumes
Export 000 t 3,258 1,877 74% 3,285 -1%
metallurgical
Export thermal 000 t 1,317 1,458 -10% 1,614 -18%
Domestic thermal 000 t 1,949 2,017 -3% 2,222 -12%
Metallurgical Coal - Production of metallurgical coal from Anglo American`s
Australian operations increased by 42%, in response to strengthening market
demand. Sales volumes benefited from preparations that were made in Q4 2009 as
cyclonic rain conditions struck Queensland in Q1 2010.
The business unit increased production of thermal coal from mines in Australia
by 4%, again in response to increasing market demand.
Thermal Coal Q1 Q1 Q1 2010 Q4 Q1 2010
2010 2009 vs. 2009 vs.
Q1 2009 Q4 2009
Production
Thermal 000 t 7,460 7,729 -3% 7,785 -4%
Eskom 000 t 8,170 8,438 -3% 8,448 -3%
Metallurgical 000 t 111 220 -50% 131 -15%
Weighted average achieved FOB
prices
RSA export thermal US$/t 78 65 20% 66 18%
RSA domestic thermal US$/t 18 17 6% 21 -14%
South American export US$/t 69 82 -16% 70 -1%
thermal
Attributable sales volumes
RSA export thermal 000 t 3,932 3,947 0% 4,206 -7%
RSA domestic thermal 000 t 1,190 1,642 -28% 1,448 -18%
South American export 000 t 2,425 2,409 1% 2,735 -11%
thermal
Thermal Coal - Production of thermal coal, from the Group`s South African and
Colombian operations, was marginally lower than the Q1 2009 performance, due
to above average rainfall in South Africa that hampered open-cast operations.
Diamonds Q1 Q1 Q1 2010 Q4 Q1 2010
2010 2009 vs. 2009 vs.
Q1 2009 Q4 2009
Total 000 carats 7,012 1,082 548% 10,124 -31%
Diamonds - Production increased to 7 million carats in the first quarter of
2010 as the market continued to improve. Sales in Q1 2010 were nearly three
times higher than the same period of 2009. This followed re-stocking in the
pipeline in the first quarter, improving US consumer confidence and strong
growth continuing in China and India.
Production is significantly ahead of Q1 2009, during which production was
scaled back across all mines in response to weak market sentiment.
Relative to Q4 2009, heavy seasonal rainfall in Southern Africa imposed
operational challenges, whilst production at De Beers` Canadian operations was
favourable.
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.
% Change
Q1 Q1
2010 2010
Q1 Q4 Q3 Q2 Q1 vs. vs.
2010 2009 2009 2009 2009 Q4 Q1
2009 2009
Platinum
Platinum 446,700 766,000 629,200 652,400 404,000 -42% 11%
(troy ounces)
Palladium 247,000 426,300 337,500 361,600 235,100 -42% 5%
(troy ounces)
Rhodium (troy 61,600 93,900 92,100 90,100 73,800 -34% -16%
ounces)
Nickel 4,400 5,300 5,500 5,400 3,300 -17% 33%
(tonnes)
Equivalent
refined
Platinum 594,700 603,900 616,500 630,400 613,400 -1% -3%
(troy
ounces)(1)
Diamonds (De
Beers)
(diamonds
recovered -
000 carats)
Diamonds 7,012 10,124 7,885 5,509 1,082 -31% 548%
Copper 160,800 185,900 168,100 165,300 150,500 -14% 7%
(tonnes)
Nickel 4,800 4,900 4,900 5,600 4,500 -2% 7%
(tonnes)
Iron Ore and
Manganese
(tonnes)
Iron ore 12,328,000 12,407,200 11,861,000 10,336, 9,992,000 -1% 23%
000
Manganese 684,000 615,000 462,000 200,000 293,000 11% 133%
ore(2)
Manganese 68,100 52,000 25,000 10,000 42,000 31% 62%
alloys(2)
Metallurgical
Coal (tonnes)
Metallurgical 3,281,600 3,805,500 3,147,800 3,354,0 2,315,300 -14% 42%
00
Thermal 3,349,800 3,487,400 3,614,300 3,738,6 3,211,500 -4% 4%
00
Thermal Coal
(tonnes)(3)
Thermal 7,460,000 7,785,400 8,431,600 8,429,3 7,729,200 -4% -3%
00
Eskom 8,170,100 8,448,400 10,400,200 8,938,4 8,438,100 -3% -3%
00
Metallurgical 111,400 130,500 224,300 172,300 220,000 -15% -50%
Other Mining
and
Industrial
(tonnes)
Metallurgical 194,700 149,900 164,900 152,600 177,900 30% 9%
coal
Thermal coal 173,000 310,200 214,500 169,000 130,000 -44% 33%
Zinc 87,700 86,500 94,000 87,100 82,800 1% 6%
Lead 15,400 18,900 18,400 16,400 14,600 -19% 5%
South Africa 182,000 167,000 183,000 164,000 179,000 9% 2%
Steel
Products
International 190,000 177,000 164,000 158,000 195,000 7% -3%
Steel
Products
Coal
production by
commodity
(tonnes)
Metallurgical 3,587,700 4,085,900 3,537,000 3,678,9 2,713,200 -12% 32%
00
Thermal 10,982,800 11,583,000 12,260,400 12,336, 11,070,700 -5% -1%
900
Eskom 8,170,100 8,448,400 10,400,200 8,938,4 8,438,100 -3% -3%
00
(1) Equivalent refined platinum production.
(2) Saleable production.
(3) Zibulo (previously Zondagsfontein) is currently not in commercial
production and therefore all revenue and related costs associated with 134,000
tonnes (119,000 tonnes in Q4 2009) of production in Q1 2010 have been
capitalised.
As production figures are sometimes more precise than the rounded numbers
shown in this report, small differences may arise throughout the report
between the summation of quarters and the year-to-date totals. The percentage
change will reflect the percentage change in the rounded production figures
shown in this report.
Due to the portfolio and management structure changes announced in October
2009, the Business Units have changed from those reported at 31 March 2009, 30
June 2009 and 30 September 2009. Comparatives have been reclassified to align
with current presentation.
22 April 2010
Sponsor: UBS
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
Leisha Wemyss, Investor Relations
Tel: +44 (0)20 7968 8607
South Africa
Anna Mulholland, 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 companies, is
headquartered in the UK and listed on the London and Johannesburg stock
exchanges. Its portfolio of mining businesses spans precious metals and
minerals - in which it is a global leader in both platinum and diamonds; base
metals - copper and nickel; and bulk commodities - iron ore, metallurgical
coal and thermal coal. Anglo American is committed to the highest standards of
safety and responsibility across all its businesses and geographies and to
making a sustainable difference in the development of the communities around
its operations. The company`s mining operations and extensive pipeline of
growth projects are located in southern Africa, South America, Australia,
North America and Asia.
www.angloamerican.co.uk
Date: 22/04/2010 08:15:57 Produced by the JSE SENS Department.
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