| Thu 19 Apr 2012, 9:00 | | AGL - Anglo American plc - Interim Management Statement for the first quarter |
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AGL
ANAAL
AGL - Anglo American plc - Interim Management Statement for the first quarter
ended 31 March 2012
Anglo American plc ("the Company")
Incorporated in the United Kingdom
(Registration number: 3564138)
Short name: Anglo
Share code: AGL
ISIN number: GB00B1XZS820
Interim Management Statement for the first quarter ended 31 March 2012
OVERVIEW
* All three strategic growth projects delivered in 2011 are ramping up
well, achieving between 74% and 86% of nameplate capacity during the
quarter
* Iron ore production increased by 17% to 11.7 million tonnes mainly due
to the ramp-up of production from Kolomela mine and a continued
improvement in performance at Amapa. Kolomela mine is expected to
produce between 4 and 5 million tonnes in 2012, ramping up to 9 Mtpa
capacity in 2013, on schedule
* Metallurgical Coal`s production of export metallurgical coal increased
by 73% to 3.7 million tonnes following the Q1 2011 floods in Australia
and decreased by 8% compared to Q4 2011 due to wet weather
* Export thermal coal production from South Africa and Colombia increased
by 6% to 8.2 million tonnes
* Copper production increased by 21% to 168,400 tonnes, and was in line
with Q4 2011, due to the continued ramp-up of the Los Bronces expansion
and higher ore grades at El Soldado, partly offset by expected lower
grades and weather related and other operational issues at Collahuasi
* Nickel production from the Nickel business unit increased by 97% to
12,000 tonnes, and by 21% compared to Q4 2011, as the Barro Alto
operation continues to ramp up
* Platinum equivalent refined production increased by 5% to 593,200
ounces, mainly due to a lower number of safety stoppages, a strong
performance from the Mogalakwena open pit mine and ramp-up of the Unki
mine. Refined platinum production declined by 24% to 402,800 ounces,
due to planned converter plant maintenance
* Diamond production decreased by 16% to 6.2 million carats, and by 4%
compared to Q4 2011, mainly reflecting De Beers` continued scheduled
maintenance and waste stripping activities
* During the quarter, the Group issued $1.9 billion in corporate bonds
with maturities ranging from five to ten years. On 23 March, Anglo
American gave notice that it had exercised its right to redeem the
$1.7 billion 4.00% convertible bonds due 2014 on 22 May 2012. These
bonds may still be converted to equity at any time up to 15 May 2012
* De Beers acquisition received all competition approvals; completion on
track for H2 2012
This Interim Management Statement for the first quarter ended 31 March 2012
is unaudited. Interim Results for the six months to 30 June 2012 will be
announced on 27 July 2012.
This report forms Anglo American plc`s Interim Management Statement for the
purpose of the UK Listing Authority`s Disclosure and Transparency Rules.
IRON ORE & MANGANESE
Iron Ore and Manganese Q1 Q1 Q1 2012 Q4 Q1 2012
2012 2011 vs. 2011 vs.
Q1 2011 Q4 2011
Iron ore 000 t 11,678 9,945 17% 12,427 (6)%
Manganese ore 000 t 816 541 51% 722 13%
Manganese alloys 000 t 55 69 (20)% 78 (29)%
Attributable sales
volumes
RSA export iron ore 000 t 10,121 8,557 18% 9,600 5%
RSA domestic iron ore 000 t 1,320 1,826 (28)% 1,242 6%
South American export 000 t 1,443 1,063 36% 1,374 5%
iron ore
Iron Ore - Following the successful commissioning of Kolomela, the mine
continues to ramp up well with 1.5 Mt produced during the quarter, 30%
more than Q4 2011. During Q1 2012, 1.7 Mt was railed from Kolomela to the
Port of Saldanha. Should the current ramp-up performance be sustained, the
mine should comfortably meet the 4 to 5 Mt production target for 2012,
ramping up to 9 Mtpa design capacity in 2013.
Sishen mine`s production of 8.5 Mt was in line with Q1 2011, however
decreased by 14% compared with Q4 2011. As expected, production was impacted
by a planned increase in waste stripping activity. However, during the first
two months of 2012, the availability of material supplied to the mine`s dense
media separation plant and jig plant was impacted by wet pit conditions
resulting from heavy rainfall and poor operator attendance. Production run
rates recovered in March 2012 as the ramp-up in waste mining continued to
improve.
In Brazil, production of 1.6 Mt was 37% higher than Q1 2011 and 24% higher
than Q4 2011. The increase in production was driven by higher mass recovery
resulting from increased stability at the beneficiation plant, lower rainfall
in February and March, and a reduction in waste materials due to improved
processing.
The improved sales performance compared to Q1 2011 was primarily due to lower
rainfall and a decrease in delays associated with transportable moisture
limits.
Manganese - Ore production increased by 51% mainly due to higher concentrator
production rates at GEMCO (Australia) and increased volumes at the South
African operations which were negatively impacted by stoppages due to a
fatality in February 2011.
Alloy production was weaker in the quarter due to the closure of the
silicomanganese South Plant at Metalloys (South Africa) in January 2012 and
the temporary closure of TEMCO (Australia) in March 2012.
METALLURGICAL COAL
Metallurgical Coal(1) Q1 Q1 Q1 2012 Q4 Q1 2012
2012 2011 vs. 2011 vs.
Q1 2011 Q4 2011
Production
Export metallurgical 000 t 3,743 2,165 73% 4,061 (8)%
Thermal 000 t 2,571 3,002 (14)% 3,359 (23)%
Weighted average achieved
FOB prices
Export metallurgical US$/t 190 210 (10)% 234 (19)%
Export thermal US$/t 113 102 11% 103 10%
Domestic thermal US$/t 39 35 11% 34 15%
Attributable sales
volumes
Export metallurgical 000 t 3,951 2,323 70% 4,010 (1)%
Export thermal 000 t 1,222 947 29% 1,850 (34)%
Domestic thermal 000 t 1,484 1,892 (22)% 1,853 (20)%
(1) In 2011 the Group decided to retain Peace River Coal and, from July 2011
it has been managed within the Metallurgical Coal business unit. Information
presented includes Peace River Coal and comparatives have been reclassified.
Production of metallurgical coal increased by 73% compared to Q1 2011,
benefiting from a reduction in weather related stoppages due to the
initiatives implemented during 2011 to mitigate rain impacts. Production
decreased by 8% compared to Q4 2011 due to wet weather in Q1 2012. The
Moranbah longwall restarted during Q1 2012.
Production of thermal coal decreased by 14% compared to Q1 2011, and by 23%
compared to Q4 2011, as a result of lower production at the New South Wales
operations that were impacted by industrial action and wet weather.
THERMAL COAL
Thermal Coal Q1 Q1 Q1 2012 Q4 Q1 2012
2012 2011 vs. 2011 vs.
Q1 2011 Q4 2011
Production
RSA thermal (non-Eskom) 000 t 5,227 5,079 3% 5,846 (11)%
Eskom 000 t 7,763 8,275 (6)% 9,487 (18)%
RSA metallurgical 000 t 58 80 (27)% 84 (31)%
Colombia export thermal 000 t 2,953 2,609 13% 2,753 7%
Weighted average achieved
FOB prices
RSA export thermal US$/t 104 117 (11)% 107 (3)%
RSA domestic thermal
(including Eskom) US$/t 23 22 5% 20 15%
Colombia export thermal US$/t 95 98 (3)% 98 (3)%
Attributable sales volumes
RSA export thermal 000 t 4,519 3,568 27% 5,146 (12)%
RSA domestic thermal
(including Eskom) 000 t 9,447 9,525 (1)% 10,842 (13)%
Colombia export thermal 000 t 2,634 2,147 23% 2,784 (5)%
Production in South Africa (non-Eskom) was 3% higher than Q1 2011. Increased
production from Zibulo was partly offset by safety stoppages, a one day
national `stay-away` and a contractor strike. Cerrejon delivered a strong
performance, benefiting from a reduction in weather related stoppages
compared to Q1 2011.
Export sales volumes in South Africa increased by 27% compared with Q1 2011,
due to improved Transnet Freight Rail performance and optimised load-outs,
supported by high stock levels built up at the operations in the first half
of 2011.
COPPER
Copper Q1 Q1 Q1 2012 Q4 Q1 2012
2012 2011 vs. 2011 vs.
Q1 2011 Q4 2011
Copper t 168,400 138,800 21% 170,000 (1)%
Production increased by 21% to 168,400 tonnes following the commissioning of
the Los Bronces expansion project in October 2011 (46,500 tonnes) and higher
ore grades at El Soldado. The Los Bronces ramp-up is progressing well and
reached 86% of nameplate capacity within five months of commissioning. This
was partially offset by lower production from Collahuasi owing to lower
grades, stoppages caused by severe weather conditions, a fatality in February
and a ball mill failure in March. Production from Mantos Blancos decreased
due to lower ore grades fed to the plant mainly due to a programmed change in
the mine plan.
NICKEL
Nickel Q1 Q1 Q1 Q4 Q1
2012 2012
2012 2011 vs. 2011 vs.
Q1 Q4
2011 2011
Nickel t 12,000 6,100 97% 9,900 21%
Production almost doubled in Q1 2012 due to the delivery of 6,600 tonnes from
the Barro Alto operation which continues its ramp-up. Barro Alto operated at
70% of its nameplate capacity during Q1 2012. Codemin performance was in line
with the prior year, while Loma de Niquel production decreased by 15% owing
to lower grades and throughput.
Barro Alto`s production will be impacted in Q2 2012 by a planned shutdown of
one of the two lines lasting around a month. The operation remains on track
to deliver full capacity rates by the beginning of 2013.
PLATINUM
Platinum Q1 Q1 Q1 2012 Q4 Q1 2012
2012 2011 vs. 2011 vs.
Q1 2011 Q4 2011
Refined
Platinum 000 oz 403 533 (24)% 710 (43)%
Palladium 000 oz 235 288 (18)% 393 (40)%
Rhodium 000 oz 54 86 (37)% 97 (44)%
Nickel t 4,700 4,800 (2)% 5,100 (8)%
Equivalent refined
Platinum 000 oz 593 568 5% 583 2%
Platinum - Equivalent refined platinum production was 5% higher than Q1 2011
as a result of higher production at the underground operations which
experienced a lower number of safety stoppages. Platinum had 13 safety
stoppages at its own mining operations in Q1 2012, compared with 21 in Q1
2011 and 32 in Q4 2011.
Increased production at Unki, Mogalakwena, Khuseleka, Khomanani, Siphumelele,
Bathopele, Thembelani, Dishaba and Union South mines was partly offset by
lower volumes from Tumela and Union North mines. Mogalakwena`s head grade and
recoveries improved by 5% and 24% respectively compared with Q1 2011, as a
result of the improved concentration process.
Refined platinum production was 24% lower, despite higher output from the
mining operations, due to planned maintenance at the converting plant in
Rustenburg which has been successfully completed.
Palladium, Rhodium & Nickel - Refined production of palladium, rhodium and
nickel decreased by 18%, 37% and 2% respectively due to a different source
mix from operations and different pipeline processing times for each metal.
DIAMONDS
Diamonds (100% basis) Q1 Q1 Q1 2012 Q4 Q1 2012
2012 2011 vs. 2011 vs.
Q1 2011 Q4 2011
Diamonds 000 6,208 7,396 (16)% 6,489 (4)%
carats
Production decreased by 16% to 6.2 million carats mainly reflecting De Beers
planned focus on maintenance and waste stripping activities. The disposal of
Finsch mine in 2011 has also reduced production versus Q1 2011.
All regulatory and competition approvals with respect to the De Beers
transaction for the acquisition of the Oppenheimer interest have been
achieved, with the exception of the consent of the South African Diamonds and
Precious Metals Regulator and the consent of the South African Minister of
Mineral Resources in terms of the relevant legislation. Completion of the
acquisition is still expected in the second half of 2012.
OTHER MINING AND INDUSTRIAL - CORE
Other Mining and Q1 Q1 Q1 2012 Q4 Q1 2012
Industrial - Core
2012 2011 vs. 2011 vs.
Q1 2011 Q4 2011
Phosphates t 246,900 240,800 3% 274,900 (10)%
Niobium t 1,100 900 22% 1,000 10%
Phosphates - Production increased by 3% as a result of operational
improvements and variations in the product mix reflecting changes in market
demand. Production decreased by 10% compared to Q4 2011 due to an annual
maintenance stoppage.
Niobium - Production was 22% higher as a result of improved performance at
the tailings plant, higher grades and increased production at Boa Vista due
to improvements in the concentration process.
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
Q1 Q1
2012 2012
Q1 Q4 Q3 Q2 Q1 vs. vs.
2012 2011 2011 2011 2011 Q4 Q1
2011 2011
Iron Ore and
Manganese segment
(tonnes)
Iron ore 11,678,50 12,427 12,182, 11,534, 9,944,80 (6)% 17%
0 ,300 900 100 0
Manganese ore(1) 816,200 722,50 807,600 716,100 540,600 13% 51%
0
Manganese 55,000 78,000 77,600 76,100 68,800 (29)% (20)%
alloys(1)(2)
Metallurgical
Coal segment
(tonnes)(3)
Export 3,743,000 4,060, 4,015,0 3,949,4 2,164,70 (8)% 73%
metallurgical 600 00 00 0
Thermal 2,570,600 3,358, 3,978,0 3,087,5 3,002,30 (23)% (14)%
700 00 00 0
Thermal Coal
segment
(tonnes)
RSA thermal (non- 5,227,400 5,846, 5,198,4 5,264,4 5,079,30 (11)% 3%
Eskom) 000 00 00 0
Eskom 7,762,700 9,487, 8,751,4 8,782,6 8,275,00 (18)% (6)%
000 00 00 0
RSA metallurgical 58,400 84,500 75,600 83,800 79,500 (31)% (27)%
Colombia export 2,953,000 2,752, 2,851,8 2,537,7 2,609,50 7% 13%
thermal 700 00 00 0
Copper segment 168,400 170,00 139,900 150,300 138,800 (1)% 21%
(tonnes)(4) 0
Nickel segment 12,000 9,900 6,500 6,600 6,100 21% 97%
(tonnes)(5)
Platinum segment
Platinum (troy 402,800 710,00 646,500 640,700 532,900 (43)% (24)%
ounces) 0
Palladium (troy 235,000 392,70 376,000 373,800 288,200 (40)% (18)%
ounces) 0
Rhodium (troy 53,900 96,800 75,200 79,900 85,700 (44)% (37)%
ounces)
Nickel (tonnes) 4,700 5,100 4,900 5,500 4,800 (8)% (2)%
Equivalent
refined
Platinum (troy 593,200 583,20 666,800 592,500 567,600 2% 5%
ounces) 0
Diamonds segment
(De Beers)
(diamonds
recovered -
carats)
Total diamonds 6,208,000 6,489, 9,305,0 8,138,0 7,396,00 (4)% (16)%
production for De 000 00 00 0
Beers
Anglo American`s 2,793,000 2,920, 4,187,0 3,662,0 3,328,00 (4)% (16)%
share of diamonds 000 00 00 0
production for De
Beers
Other Mining and
Industrial
segment
(tonnes)(6)
Phosphates 246,900 274,90 284,500 260,700 240,800 (10)% 3%
0
Niobium 1,100 1,000 1,100 900 900 10% 22%
South Africa 162,400 163,10 158,000 183,100 173,200 - (6)%
Steel Products 0
Coal production
by commodity
(tonnes)
Metallurgical 3,801,400 4,145, 4,090,6 4,033,2 2,244,20 (8)% 69%
100 00 00 0
Thermal 10,751,00 11,957 12,028, 10,889, 10,691,1 (10)% 1%
0 ,400 200 600 00
Eskom 7,762,700 9,487, 8,751,4 8,782,6 8,275,00 (18)% (6)%
000 00 00 0
(1) Saleable production.
(2) Production includes Medium Carbon Ferro Manganese.
(3) Includes Peace River Coal which in 2011 was reclassified from Other
Mining and Industrial to Metallurgical Coal to align with internal
management reporting. Comparatives have been reclassified to align with
current presentation.
(4) Excludes Platinum and Black Mountain mine copper production.
(5) Excludes Platinum nickel production.
(6) Excludes Tarmac.
Production figures are sometimes more precise than the rounded numbers shown
in this report. The percentage change will reflect the percentage change
using the unrounded production figures shown in this report.
EXPLORATION AND EVALUATION EXPENDITURE
Exploration and evaluation operating expenditure for the quarter was $140m,
30% higher than Q1 2011, primarily reflecting continuing spend on expansion
project studies in Copper including the Quellaveco and Pebble projects, and
in Metallurgical Coal in Australia and Canada. Higher spend in Nickel
reflects advancement of further growth options in Brazil. The polymetallic
Sakatti prospect in Finland continued to be funded, and brownfield drilling
continued across all other business units.
FINANCING
During the quarter, the Group issued corporate bonds with a US$ equivalent
value of $1.9 billion in the US, European and South African markets. These
included:
* $600 million 2.625% senior notes due 2017
* Euro750 million 3.500% guaranteed notes due 2022 issued under the
Euro Medium Term Note (EMTN) programme
* R600 million floating rate notes at JIBAR + 1.38% due 2017 and R1.4
billion 9.27% fixed rate notes due 2019 issued under the South
African Domestic Medium Term Note (DMTN) programme.
On 23 March, Anglo American gave notice that it had exercised its right to
redeem the $1.7 billion 4.00% convertible bonds due 2014 on 22 May 2012.
These bonds may still be converted into Anglo American plc shares at any time
up to the close of business on 15 May 2012. Following the announcement of the
recommended 2011 full year dividend, and in accordance with the terms and
conditions of the bonds, the conversion price was adjusted from GBP18.36 to
GBP18.02 on 13 April 2012.
Forward looking statements:
This 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:
Media Investors
UK UK
James Wyatt-Tilby Leng Lau
Tel: +44 (0)20 7968 8759 Tel: +44 (0)20 7968
8540
Emily Blyth Caroline Crampton (nee
Tel: +44 (0)20 7968 8481 Metcalfe)
Tel: +44 (0)20 7968
2192
South Africa Leisha Wemyss
Pranill Ramchander Tel: +44 (0)20 7968
Tel: +27 (0)11 638 2592 8607
South Africa
Nicholas Gordon
Tel: +27 (0)11 638 3262
Notes to editors:
Anglo American is one of the world`s largest mining companies, is
headquartered in the UK and listed on the London and Johannesburg stock
exchanges. Anglo American`s portfolio of mining businesses spans bulk
commodities - iron ore and manganese, metallurgical coal and thermal coal;
base metals - copper and nickel; and precious metals and minerals - in which
it is a global leader in both platinum and diamonds. 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, extensive pipeline of growth projects and exploration activities
span southern Africa, South America, Australia, North America, Asia and
Europe. www.angloamerican.com
19 April 2012
Sponsor: UBS South Africa (Pty) Ltd
Date: 19/04/2012 09:00:32 Produced by the JSE SENS Department.
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