| Thu 21 Oct 2010, 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 third quarter ended 30 September 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 third quarter ended 30 September 2010
Overview
- Platinum refined production increased by 11% to 697,000 ounces and expect
to achieve full year target of 2.5 million ounces
- Year to date cash operating costs of R11,647 per equivalent refined
platinum ounce
- Labour productivity increased by 4%
- Copper production decreased by 9% to 153,400 tonnes, mainly due to expected
lower grades, ore hardness and scheduled maintenance at Los Bronces
- Nickel (1) production increased by 16% to 5,700 tonnes
- Iron ore production was flat at 11.8 million tonnes and showed a 3%
increase compared to the second quarter of 2010
- Metallurgical coal production from the Australian operations increased by
26% to 4.0 million tonnes
- Thermal coal production decreased by 2% to 22.2 million tonnes
- Diamond production increased by 15% to 9.0 million carats
- 36,000 tpa Barro Alto nickel project, on schedule to more than double
nickel production, was 98% complete at the end of Q3 2010. First production
is expected in Q1 2011
- Further strengthening of balance sheet through US$1.25 billion bond issue
- US$750 million 2.150% Senior Notes Due 2013
- US$500 million 4.450% Senior Notes Due 2020
Preliminary Results for the full year to 31 December 2010 will be announced on
17 February 2011.
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
Platinum Q3 Q3 Q3 2010 Q2 Q3 2010
2010 2009 vs. 2010 vs.
Q3 2009 Q2 2010
Refined
Platinum 000 oz 697 629 11% 554 26%
Palladium 000 oz 405 338 20% 294 38%
Rhodium 000 oz 89 92 -3% 67 33%
Nickel t 4,300 5,500 -22% 4,800 -10%
Equivalent
refined
Platinum 000 oz 648 617 5% 601 8%
Platinum - Refined production increased to 697,000 ounces, 11% higher than Q3
2009 and 26% higher than the prior quarter, largely driven by an increase in own
mines` production, most notably at Mogalakwena, Thembelani and Tumela.
Processing performance was in line with expectations during the quarter.
Platinum remains confident that it will meet its full year production target of
2.5 million ounces of refined platinum.
Equivalent refined platinum ounces from mining and purchase activities amounted
to 648,000 ounces, 5% higher than Q3 2009 and 8% higher than the prior quarter,
mainly due to an increase in own mines` production, partly offset by lower
purchases from third parties. The Q3 2009 production results included some
12,000 ounces from higher cost operations that were placed on care and
maintenance during August 2009.
Palladium, Rhodium & Nickel - Refined production of palladium increased by 20%,
while rhodium and nickel decreased by 3% and 22% respectively. The variations
are due to a different ore mix from operations and different pipeline processing
times per metal.
Copper Q3 Q3 Q3 2010 Q2 Q3 2010
2010 2009 vs. 2010 vs.
Q3 2009 Q2 2010
Copper t 153,400 168,100 -9% 154,700 -1%
Copper - Production decreased by 9% to 153,400 tonnes mainly as a result of
lower grades, ore hardness and scheduled maintenance in the mill at Los Bronces.
Collahuasi`s production was also marginally lower due to lower grades and
planned maintenance in the concentrator plant, although mostly offset by higher
throughput.
Production was 1% lower compared to Q2 2010, principally due to the consequence
of lower ore grades and scheduled maintenance at Los Bronces.
Nickel Q3 Q3 Q3 2010 Q2 Q3 2010
2010 2009 vs. 2010 vs.
Q3 2009 Q2 2010
Nickel t 5,700 4,900 16% 5,300 8%
Nickel - Production increased by 16% compared to Q3 2009, when production was
impacted by a metal run-out from Loma de Niquel`s EF2 furnace. The furnace,
which was shut down in May 2009, resumed operations in the first quarter of
2010. However, production of 660 tonnes was lost in the third quarter of 2010
as a result of electricity rationing imposed by the Venezuelan government.
Production at Codemin has been stable and is in line with Q3 2009. Planned
furnace relining is expected to stop production for approximately 75 days in the
fourth quarter of 2010.
The 36,000 tpa Barro Alto nickel project, which will more than double Anglo
American`s nickel production, was 98% complete at the end of September and is on
schedule for first production in Q1 2011.
Iron Ore and Manganese Q3 Q3 Q3 2010 Q2 Q3 2010
2010 2009 vs. 2010 vs.
Q3 2009 Q2 2010
Iron ore 000 t 11,819 11,861 - 11,458 3%
Manganese 000 t 849 462 84% 674 26%
Ore
Manganese 000 t 80 25 220% 87 -8%
Alloys
Iron ore - Total production of 11.8 Mt was flat compared with Q3 2009 and 3%
higher than Q2 2010.
Sishen Mine`s production was 10.1 Mt, a decrease of 0.6 Mt compared to Q3 2009,
as a result of decreased production from the DMS plant, due to unplanned primary
crusher maintenance and the shut down of the plant due to full finished product
stockpiles. Production from the Jig plant increased by 20% or 0.6 Mt compared to
Q3 2009 and by 13% or 0.4 Mt compared to Q2 2010. The ramp up of the Jig plant
to produce 12.5-13 Mt during 2010 continues as planned. The 3.5 Mt produced by
the Jig plant in Q3 2010 accounted for 35% of Sishen Mine`s production.
Production from Thabazimbi Mine increased by 84% compared to Q2 2010, to 0.7 Mt,
in line with increased demand from ArcelorMittal SA.
Production also increased at Amapa, which entered commercial production at the
start of 2010.
Demand for iron ore continues to be strong in China, as well as Kumba Iron Ore`s
traditional markets of Europe, Japan and South Korea. However, Kumba Iron Ore`s
export sales in the quarter were 8.3 Mt, a decrease of 12% compared to Q3 2009
and 13% compared to the prior quarter, largely as a result of lower volumes
shipped due to rail logistics difficulties. During the quarter, three separate
derailments occurred on the Sishen/Saldanha freight line operated by Transnet
and annual maintenance was carried out on the line in August.
Manganese Ore - Production increased by 84% as market conditions continued to
recover during the quarter. Samancor is operating at close to full capacity.
Manganese Alloys - Production increased by 220% as market conditions continued
to recover during the quarter.
Metallurgical Coal Q3 Q3 Q3 2010 Q2 Q3 2010
2010 2009 vs. 2010 vs.
Q3 2009 Q2 2010
Production
Export metallurgical 000 t 3,971 3,148 26% 3,798 5%
Thermal 000 t 3,413 3,614 -6% 3,970 -14%
Weighted average
achieved FOB prices
Export metallurgical US$/t 205 124 65% 162 27%
Export thermal US$/t 91 72 26% 85 7%
Domestic thermal US$/t 30 26 15% 29 3%
Attributable sales
volumes
Export metallurgical 000 t 4,102 3,119 32% 4,087 -
Export thermal 000 t 1,600 1,527 5% 1,865 -14%
Domestic thermal 000 t 1,824 2,233 -18% 2,318 -21%
Metallurgical Coal - Production of metallurgical coal from the Group`s
Australian operations increased by 26% with export metallurgical sales
increasing by 32%. Production was negatively affected by the highest September
rainfall on record which disrupted production at open cut operations in
Queensland. Production from the underground operations increased as a result of
asset optimisation programmes focused on improving longwall performance. This
enabled the business to respond to continuing strong demand in the metallurgical
coal market.
Thermal coal production from the Group`s Australian operations decreased by 6%,
principally due to lower domestic demand. Export thermal sales volumes increased
by 5% as result of entry to new markets.
Thermal Coal Q3 Q3 Q3 2010 Q2 Q3
2010
2010 2009 vs. 2010 vs.
Q3 2009 Q2
2010
Production
Thermal(1) 000 t 8,240 8,432 -2% 7,813 5%
Eskom(1) 000 t 10,431 10,400 - 8,275 26%
Metallurgical 000 t 112 224 -50% 110 2%
Weighted average
achieved FOB prices
RSA export thermal US$/t 83 62 34% 85 -2%
RSA domestic thermal US$/t 17 14 21% 19 -11%
South American export US$/t 74 70 6% 68 9%
thermal
Attributable sales
volumes
RSA export thermal (1) 000 t 4,303 4,157 4% 3,755 15%
RSA domestic thermal (1) 000 t 11,946 11,989 - 9,588 25%
South American export 000 t 2,763 2,335 18% 2,601 6%
thermal
Includes Zibulo mine
Thermal Coal - Production of export and non-Eskom domestic thermal coal from the
Group`s South African and Colombian operations was marginally lower, mainly due
to adverse geological conditions at Goedehoop and above average rainfall in
Colombia that hampered open-cast operations, partly offset by production from
the ramp up at Zibulo.
The Thermal Coal business unit achieved export sales volume growth from both
South Africa (4%) and Colombia (18%), driven by a recovery in the American and
European markets, as well as trade into the Asian market. Realised prices for
export sales also increased compared to Q3 2009 as a result of stronger price
indices and a reduced share of fixed prices sales in the contract portfolio.
Diamonds Q3 Q3 Q3 2010 Q2 Q3 2010
2010 2009 vs. 2010 vs.
Q3 2009 Q2 2010
Total 000 Carats 9,033 7,885 15% 8,420 7%
Diamonds - Production increased to 9 million carats in response to market demand
in advance of the holiday retail seasons, which run from Thanksgiving through to
Christmas, and include Diwali.
Production was higher, mainly due to improved recoveries by the operations in
Botswana and South Africa, partly offset by lower recoveries from Namibia and
Canada.
Production summary
The figures below include the entire output of consolidated entities and the
Group`s attributable share of joint ventures, joint arrangements and associates
where applicable, except for De Beers which is quoted on a 100% basis.
% Change
Q3 Q3
2010 2010
Q3 Q2 Q1 Q4 Q3 vs vs
2010 2010 2010 2009 2009 Q2 Q3
2010 2009
Platinum
segment
Platinum 697,000 553,800 446,700 766,000 629,200 26% 11%
(troy ounces)
Palladium 404,500 294,400 247,000 426,300 337,500 38% 20%
(troy ounces)
Rhodium (troy 88,600 67,300 61,600 93,900 92,100 33% -3%
ounces)
Nickel 4,300 4,800 4,400 5,300 5,500 -10% -22%
(tonnes)
Equivalent
refined
Platinum 648,300 601,000 594,700 603,900 616,500 8% 5%
(troy
ounces)(1)
Diamonds
segment (De
Beers)
(diamonds
recovered -
000 carats)
Diamonds 9,033 8,420 7,012 10,124 7,885 7% 15%
Copper 153,400 154,700 160,800 185,900 168,100 -1% -9%
segment
(tonnes)(2)
Nickel 5,700 5,300 4,800 4,900 4,900 8% 16%
segment
(tonnes)(3)
Iron Ore and
Manganese
segment
(tonnes)
Iron ore(4) 11,819, 11,458,0 12,328,000 12,407,200 11,861,000 3% -
100 00
Manganese ore 849,000 674,000 684,000 615,000 462,000 26% 84%
(5)
Manganese 80,000 87,000 68,100 52,000 25,000 -8% 220%
alloys (5)(6)
Metallurgical
Coal segment
(tonnes)
Metallurgical
3,971,0 3,797,90 3,281,600 3,805,500 3,147,800 5% 26%
00 0
Thermal 3,413,0 3,970,20 3,349,800 3,487,400 3,614,300 -14% -6%
00 0
Thermal Coal
segment
(tonnes)(7)
Thermal 8,240,3 7,813,00 7,418,100 7,785,400 8,431,600 5% -2%
00 0
Eskom 10,431, 8,275,30 8,212,000 8,448,400 10,400,200 26% -
300 0
Metallurgical 111,700 110,400 111,400 130,500 224,300 2% -50%
Other Mining
and
Industrial
segment
(tonnes)(8)
Metallurgical 226,400 206,700 194,700 149,900 164,900 10% 37%
coal
Thermal coal 130,000 89,900 173,000 310,200 214,500 45% -39%
Zinc 93,700 91,000 87,700 86,500 94,000 3% -
Lead 22,200 15,400 15,400 18,900 18,400 44% 21%
South Africa 180,000 197,000 182,000 167,000 183,000 -9% -2%
Steel
Products
International 215,000 188,800 190,000 177,000 164,000 14% 31%
Steel
Products
Coal
production by
commodity
(tonnes)(7)
Metallurgical 4,309,1 4,115,00 3,587,700 4,085,900 3,537,000 5% 22%
00 0
Thermal 11,783, 11,873,1 10,940,900 11,583,000 12,260,400 -1% -4%
300 00
Eskom 10,431, 8,275,30 8,212,000 8,448,400 10,400,200 26% -
300 0
(1) Equivalent refined platinum production.
(2) Excludes Platinum and Black Mountain mine copper production.
(3) Excludes Platinum nickel production.
(4) At 31 December 2009, Amapa was not in commercial production and therefore
to this date all revenue and related costs were capitalised. Commercial
production commenced on 1 January 2010.
(5) Saleable production.
(6) Production includes Medium Carbon Ferro Manganese.
(7) Includes 475 kt (Q3 2009: nil) of capitalised production from Zibulo
(previously Zondagsfontein). The 475 kt includes export thermal coal
production of 233 kt (Q3 2009: nil) and Eskom coal production of 242 kt (Q3
2009: nil).
(8) Excludes Tarmac, Copebras and Catalao.
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.
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
Pranill Ramchander, Media Relations
Tel: +27 (0)11 638 2592
Anna Mulholland, Investor Relations
Tel: +27 (0)11 373 6683
Kgapu Mphahlele, Investor Relations
Tel: +27 (0)11 373 6239
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.com
21 October 2010
Sponsor: UBS South Africa (Pty) Ltd
Date: 21/10/2010 08:00:15 Produced by the JSE SENS Department.
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