TIDMAAL
RNS Number : 6621Q
Anglo American PLC
21 February 2019
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year end FINANCIAL REPORT
for the year ended 31 December 2018
21 February 2019
Anglo American Preliminary Results 2018
Consistent performance improvements deliver 4% increase in
underlying EBITDA to $9.2 billion
Mark Cutifani, Chief Executive of Anglo American, said: "We are
delivering improvements on a consistent basis, with a further 4%
increase in underlying EBITDA to $9.2 billion. Our commitment to
disciplined capital allocation has helped strengthen our balance
sheet by more than $10 billion over three years, with net debt
reduced to $2.8 billion at the end of 2018. This strong financial
result derives from our continued productivity improvements in the
underlying operations and better than expected prices for many of
our products.
"No degree of financial performance is worth a life, however,
and in 2018, five of our colleagues tragically died in workplace
safety incidents. The safety of our people is always front of mind
and our determination to reach and sustain zero harm is our most
pressing challenge.
"Our focus on efficiency and productivity, including through our
Operating Model implementation, is continuing to deliver benefits -
in terms of both safety and financial returns. In 2018, we produced
10% more product on a copper equivalent basis from half the number
of assets we had in 2012. As a result, our productivity(1) per
employee has doubled, supporting a 12 percentage point increase in
mining margin(2) to 42% and placing us amongst the leaders in the
industry. Over that six-year period, we have delivered $4.6 billion
of annual underlying EBITDA improvement in terms of costs and
volumes, including $0.4 billion in 2018. Looking forward, we see
significant further potential and by 2022, we are targeting an
additional $3-4 billion annual underlying EBITDA run-rate
improvement, relative to 2017.
"Anglo American is a resilient and highly competitive business
with a clear asset-led strategy. What's more, our world-class
portfolio benefits from considerable organic growth options,
particularly in those products that will supply a cleaner, more
electrified world and that satisfy the consumer-led demands of a
fast growing global middle-class. Our focus is on unlocking the
very significant additional potential that we see within the
business - from further productivity improvements, volume growth
from existing and new operations, and the deployment of FutureSmart
Mining(TM) technologies - and to do so safely and responsibly,
maintaining strict capital discipline and creating a sustainable
business in every sense."
Financial highlights - year ended 31 December 2018
-- Generated underlying EBITDA* of $9.2 billion, a 4% increase,
and $3.2 billion of attributable free cash flow*
-- Delivered profit attributable to equity shareholders of $3.5 billion, a 12% increase
-- Reduced net debt* to $2.8 billion, a 37% reduction since 2017
- 0.3x net debt / underlying EBITDA
-- Achieved net cost and volume improvements of $0.4 billion(3)
-- Expected 2019 cost and volume improvements of $0.5 billion,
and on track to deliver $3-4 billion annual EBITDA improvement by
2022, relative to 2017
-- Proposed final dividend of $0.51 per share, equal to 40% of second half underlying earnings*
Year ended 31 December 31 December Change
US$ million, unless otherwise stated 2018 2017
-------------------------------------------- ------------ ------------ -------
Revenue 27,610 26,243 5%
-------------------------------------------- ------------ ------------ -------
Underlying EBITDA* 9,161 8,823 4%
Underlying earnings* 3,237 3,272 (1)%
-------------------------------------------- ------------ ------------ -------
Attributable free cash flow* 3,157 4,943 (36)%
-------------------------------------------- ------------ ------------ -------
Profit attributable to equity shareholders
of the Company 3,549 3,166 12%
-------------------------------------------- ------------ ------------ -------
Underlying earnings per share* ($) 2.55 2.57 (1)%
Earnings per share ($) 2.80 2.48 13%
Dividend per share ($) 1.00 1.02 (2)%
Group attributable ROCE* 19% 19% -
-------------------------------------------- ------------ ------------ -------
Terms with this symbol * are defined as Alternative Performance
Measures (APMs). For more information on the APMs used by the
Group, including definitions, please refer to page 63.
SUSTAINABILITY PERFORMANCE
Safety
Anglo American's safety performance is the subject of very
significant management attention in order to eliminate the causes
of harm in the workplace. Five people lost their lives in 2018, all
in South Africa, two in each of our Platinum Group Metals (PGMs)
and Coal businesses and one in our Diamonds business. As a matter
of urgency, we launched an Elimination of Fatalities Taskforce
during 2018 to further interrogate drivers of fatal incidents at a
more granular, cultural level, to understand how we can better
manage fatal and catastrophic risks. Our determination to deliver
our commitment to zero harm is our most pressing challenge.
The Group's total recordable case frequency rate for the year
provides a broader picture of significant progress, with 2.66
injuries per million hours worked, a 16% improvement over the
record performance rate achieved in 2017. However, we should not be
experiencing major safety incidents and we have demonstrated time
and again that even our most potentially hazardous businesses can
be incident-free for long periods.
Environment
We recorded one Level 4 and five Level 3 environmental incidents
in 2018. The most serious related to two leakages of non-hazardous
iron ore slurry from Minas-Rio's pipeline in Brazil. Both leaks
were stopped without delay, without injuries and a thorough
clean-up of the surrounding area was completed. We also took a
responsible approach to the inspection and repair of the pipeline,
pre-emptively replacing a number of sections.
Our sustainability goals include our commitment to be a leader
in environmental stewardship. By 2030, we aim to: reduce GHG
emissions by 30% against a 2016 baseline and improve energy
efficiency by 30%; achieve a 50% net reduction in freshwater
abstraction in water-scarce regions; and deliver net-positive
impacts in biodiversity wherever we operate. We are also working on
ensuring all operations fully align with our Biodiversity Standard
and our best-in-class Integrated Mine Closure Planning System.
Currently, 12% of our energy needs are met by renewables, and we
are working to increase this.
Tailings
We manage our tailings dams with the utmost care and have full
confidence in the integrity of our 56 managed tailings storage
facilities around the world. We are, of course, following
developments carefully to ensure any learnings from recent tragic
events are integrated into our own processes and controls. There is
nothing we have seen to date to cause us to alter our already
stringent approach to tailings dam safety management.
We have a mandatory Group Technical Standard for tailings dam
safety management which exceeds regulatory requirements. We conduct
daily and fortnightly inspections, with quarterly external audits
performed by specialised consulting firms. There are also annual
inspections performed by the Engineer of Record (who is external to
Anglo American) who are themselves also subject to independent,
external reviews. These processes are in addition to the various
forms of remote and other monitoring technologies installed at
appropriate sites that measure everything from ground movement to
temperature and hydrology, as examples.
Sustainable mining
Our far-reaching Sustainable Mining Plan, launched in 2018 as
part of the FutureSmart Mining(TM) programme, commits us to a
series of ambitious medium and longer terms goals. These relate to
three major areas of sustainability aligned to the UN's 2030
Sustainable Development Goals: trusted corporate leader (i.e.
advocating for the highest standards of governance to drive
transparency and trust in mining and mined products); healthy
environment; and thriving communities. While our environmental
goals will rely on many of the technologies we are beginning to
deploy, we are also thinking innovatively to create regional
ecosystems of sustainable economic activity, in partnership with
appropriate development experts.
Anglo American has a long track record as a leader in
sustainable, responsible mining. Such attributes were recognised in
April 2018 in the inaugural Responsible Mining Index, across all
metrics and particularly in relation to economic development,
community wellbeing and lifecycle management.
(1) Productivity indexed to 2012 benchmark.
(2) The mining margin represents the Group's underlying EBITDA
margin for the mining business. It excludes the impact of PGMs
purchase of concentrate, third-party purchases made by De Beers,
third-party trading activities performed by Marketing, the
Eskom-tied South African domestic thermal coal business and
reflects Debswana accounting treatment as a 50/50 joint
venture.
(3) Excludes the impact of the suspension of operations at Minas-Rio.
Operational and financial review of Group results for the year
ended
31 December 2018
OPERATIONAL PERFORMANCE
We have continued to improve the performance of our assets
through increased efficiency and productivity, including the
implementation of our Operating Model and, as a result, have
delivered $0.4 billion of cost and volume improvements in 2018
($0.8 billion excluding above CPI increases in oil and other energy
costs, and rail constraints at Kumba). Across the Group, production
increased by 6% on a copper equivalent basis, excluding the impact
of the stoppage at Minas-Rio, primarily driven by continued strong
performances at Copper, Metallurgical Coal and De Beers, as well as
improved production at our PGMs business. This was partly offset by
curtailed production at Kumba Iron Ore as a result of third-party
rail constraints.
Copper production increased by 15% to 668,300 tonnes (2017:
579,300 tonnes), with increases at all operations. Collahuasi
delivered record copper in concentrate production, benefiting from
a strong plant performance following the completion of planned
plant improvement initiatives and planned higher ore grades. At Los
Bronces, production increased by 20%, owing to strong mine and
plant performance, as well as planned higher ore grades.
Metallurgical coal production increased by 11% to 21.8 Mt (2017:
19.7 Mt), driven by a record performance from Moranbah and
production growth at Grosvenor.
De Beers' rough diamond production increased by 6% to 35.3
million carats (2017: 33.5 million carats). Production increases at
Orapa and the contribution from the ramp-up of Gahcho Kué more than
offset the effect of the temporary suspension of production at
Venetia following a fatal incident and the placing of Voorspoed
mine onto care and maintenance.
At our PGMs business, platinum production increased by 4% to
2,484,700 ounces (2017: 2,397,400 ounces) and palladium by 3% to
1,610,800 ounces (2017: 1,557,400 ounces), reflecting continued
strong performance at Mogalakwena and ongoing operational
improvements at Amandelbult. Refined platinum production decreased
by 4% to 2,402,400 ounces (2017: 2,511,900 ounces) and refined
palladium by 10% to 1,501,800 ounces (2017: 1,668,500 ounces) as
scheduled smelter maintenance delayed refined production into
2019.
At Kumba, iron ore output decreased by 4% to 43.1 Mt (2017: 45.0
Mt) due to Transnet's rail performance constraints throughout 2018.
In response, Kumba took the strategic decision to improve product
quality to maximise the value of those tonnes railed to the port,
which in turn reduced total production.
At Thermal Coal - South Africa, total export production
decreased by 1% to 18.4 Mt (2017: 18.6 Mt), as operations continued
to transition between mining areas.
Nickel production decreased by 3% to 42,300 tonnes (2017: 43,800
tonnes) owing to a 40-day planned maintenance stoppage at Barro
Alto. Manganese ore production increased by 3% to 3.6 Mt (2017: 3.5
Mt), reflecting improved concentrator availability and favourable
weather conditions at the Australian operations.
Group copper equivalent unit costs were in line with the prior
year in both local currency and US dollar terms as the effect of
cost and productivity initiatives offset the impact of inflation
across the Group. A 9% decrease in unit costs at Copper, owing to
increased production and continued cost savings across all the
operations, was offset by Metallurgical Coal, where increased costs
were incurred to establish new mining areas to achieve further
productivity improvements, and at Kumba following lower production
and higher strip ratios.
Excluded from the Group copper equivalent result is the impact
of Minas-Rio suspending operations from March 2018, following the
two pipeline leaks. The operations resumed after the receipt of the
appropriate regulatory approvals on 20 December, following an
extensive and detailed technical inspection and the precautionary
replacement of certain sections of the pipeline. In addition, on 21
December, a key regulatory approval relating to the Minas-Rio Step
3 licence area was granted, providing greater operational
flexibility and access to higher grade iron ore to support the
increase of production towards the full design capacity of 26.5
million tonnes per year.
FINANCIAL PERFORMANCE
Anglo American's profit attributable to equity shareholders
increased to $3.5 billion (2017: $3.2 billion). Underlying earnings
were $3.2 billion (2017: $3.3 billion), while operating profit was
$6.1 billion (2017: $5.5 billion).
UNDERLYING EBITDA*
Group underlying EBITDA increased by 4% to $9.2 billion (2017:
$8.8 billion). The underlying EBITDA margin was 30% (2017: 31%)
with the mining margin increasing to 42% (2017: 40%). This was
driven by strong prices across the Group, particularly the PGM
basket of metals, thermal and metallurgical coal and nickel, as
well as continued productivity improvements and cost control across
the portfolio, that more than offset the impact of inflation across
the Group. A reconciliation of 'Profit before net finance costs and
tax', the closest equivalent IFRS measure to underlying EBITDA, is
provided within note 3 to the Condensed financial statements.
Underlying EBITDA* by segment
$ million Year ended Year ended
31 December 2018 31 December 2017
---------------------- ------------------ ------------------
De Beers 1,245 1,435
Copper 1,856 1,508
PGMs 1,062 866
Iron Ore 1,177 1,828
Coal 3,196 2,868
Nickel and Manganese 844 610
Corporate and other (219) (292)
Total 9,161 8,823
---------------------- ------------------ ------------------
Underlying EBITDA* reconciliation 2017 to 2018
The reconciliation of underlying EBITDA from $8.8 billion in
2017 to $9.2 billion in 2018 shows the controllable factors (e.g.
cost and volume), as well as those largely outside of management
control (e.g. price, foreign exchange and inflation), that drive
the Group's performance.
$ billion
---------------------------------- ---- -------
2017 underlying EBITDA* 8.8
Price 0.9
Foreign exchange 0.2
Inflation (0.4)
Net volume and cost improvements 0.4
Volume 0.2
Cash cost 0.2
Minas-Rio (0.6)
Other (0.2)
---------------------------------- ---- -------
2018 underlying EBITDA* 9.2
---------------------------------- ---- -------
Price
Average market prices for the Group's basket of commodities and
products increased by 4%, contributing $0.9 billion of improvement
to underlying EBITDA. In our Coal business, the realised price for
South African thermal export coal increased by 14%, while the
realised price for Australian hard coking coal increased by 4%. The
price achieved for the PGM basket of metals was 13% higher, largely
due to palladium and rhodium, which recorded price increases of 17%
and 101% respectively. The nickel realised price increased by 24%
compared with 2017.
Foreign exchange
The positive foreign exchange impact on underlying EBITDA of
$0.2 billion was largely due to revaluations of monetary items on
the balance sheet, resulting from the effect of weaker producer
closing currency rates.
Inflation
The Group's weighted average CPI for the period was 4%, in line
with 2017. This was principally influenced by South Africa, which
saw local CPI of around 5%. The impact of inflation on costs
reduced underlying EBITDA by $0.4 billion.
Volume
Increased volumes across the portfolio benefited underlying
EBITDA by $0.2 billion, driven by an excellent performance at
Metallurgical Coal's longwall operations and strong mine and plant
performance, coupled with planned higher ore grades, at Copper.
This was partly offset by Kumba, which was affected by third-party
rail constraints and a scheduled refurbishment of the shiploader at
Saldanha Port, and by lower sales volumes at De Beers, reflecting
the higher proportion of lower value diamonds sold in 2017.
Cost
The Group's cost improvements benefited underlying EBITDA by
$0.2 billion, with cost saving initiatives across the Group and
unit cost reductions at Copper outweighing the effects of above CPI
inflationary pressure on the mining industry related largely to
higher oil and electricity prices.
Minas-Rio
The negative impact on the Group's underlying EBITDA from the
suspension of operations at Minas-Rio from March to December was
$0.6 billion, compared to 2017. Production decreased to 3.4 Mt
(2017: 16.8 Mt).
UNDERLYING EARNINGS*
Profit for the year increased by 8% to $4.4 billion (2017: $4.1
billion). Group underlying earnings were marginally lower at $3.2
billion (2017: $3.3 billion), as a result of increased depreciation
and amortisation charges, offset by the 4% increase in underlying
EBITDA.
Reconciliation from underlying EBITDA* to underlying
earnings*
$ million Year ended Year ended
31 December 2018 31 December 2017
------------------------------- ------------------ ------------------
Underlying EBITDA* 9,161 8,823
Depreciation and amortisation (2,784) (2,576)
Net finance costs and income
tax expense (2,265) (2,223)
Non-controlling interests (875) (752)
Underlying earnings* 3,237 3,272
------------------------------- ------------------ ------------------
Depreciation and amortisation
Depreciation and amortisation increased to $2.8 billion (2017:
$2.6 billion), owing to higher sustaining capital expenditure,
increased production at Moranbah and Grosvenor and stronger average
local currencies.
Net finance costs and income tax expense
Net finance costs, before special items and remeasurements, were
$0.4 billion (2017: $0.5 billion). Increases in LIBOR were offset
by lower average borrowings during the year resulting from a 24%
reduction in gross debt.
The underlying effective tax rate was 31.3% (2017: 29.7%). The
effective tax rate in 2018 benefited from the release of a deferred
tax liability balance in Chile, partially offset by the impact of
the relative levels of profits arising in the Group's operating
jurisdictions. In future periods, it is expected that the
underlying effective tax rate will remain above the UK statutory
tax rate. The tax charge for the year, before special items and
remeasurements, was $1.5 billion (2017: $1.3 billion).
Non-controlling interests
The share of underlying earnings attributable to non-controlling
interests of $0.9 billion (2017: $0.8 billion) principally relates
to minority shareholdings in Kumba, Copper and PGMs.
SPECIAL ITEMS AND REMEASUREMENTS
Special items and remeasurements show a net gain of $0.3 billion
(2017: net charge of $0.1 billion) and included impairment
reversals of $1.1 billion at Moranbah-Grosvenor and Capcoal
(Metallurgical Coal), partially offset by the write-off of assets
in De Beers' South African operations of $0.1 billion following the
decision to close Voorspoed; the write-down to fair value of PGMs'
investment in Bafokeng-Rasimone Platinum Mine of $0.1 billion and a
loss on disposal of $0.1 billion relating to Union; as well as
losses arising on bond buybacks completed in the year (Corporate
and other) of $0.1 billion.
Full details of the special items and remeasurements recorded
are included in note 9 to the Condensed financial statements.
CASH FLOW
Cash flows from operations
Cash flows from operations decreased to $7.8 billion (2017: $8.4
billion). An increase in underlying EBITDA from subsidiaries and
joint operations was offset by lower working capital movements. In
2017, working capital movements included operating payable inflows
from transactions in PGMs that were not repeated in 2018.
Cash outflows on operating working capital were $30 million
(2017: inflows of $879 million), driven mainly by an increase in
inventories at PGMs resulting from refining capacity constraints
due to maintenance work on the processing assets, and at Kumba
owing to third-party rail constraints. These were offset by
operating payables inflows across the Group.
Capital expenditure*
Year ended Year ended
$ million 31 December 2018 31 December 2017
------------------------------------- ------------------ ------------------
Stay-in-business 1,617 1,310
Development and stripping 796 586
Life extension projects(1) 245 216
Proceeds from disposal of property,
plant and equipment (162) (52)
------------------------------------- ------------------ ------------------
Sustaining capital 2,496 2,060
Growth projects(1) 340 168
------------------------------------- ------------------ ------------------
Total 2,836 2,228
Capitalised operating cash flows (18) (78)
------------------------------------- ------------------ ------------------
Total capital expenditure 2,818 2,150
------------------------------------- ------------------ ------------------
(1) Life extension projects and growth projects are collectively
referred to as expansionary capital expenditure.
Capital expenditure increased to $2.8 billion (2017: $2.2
billion), with rigorous capital discipline continuing to be applied
to all projects. Sustaining capital increased to $2.5 billion
(2017: $2.1 billion), driven by stronger average local currencies,
planned additional stay-in-business expenditure across the Group,
in line with our increased production base, and increased
capitalised development and stripping expenditure primarily due to
longwall productivity improvements at Metallurgical Coal and an
optimisation of the mine plan at Mogalakwena.
In 2019, we expect total capital expenditure to increase to
$3.8-$4.1 billion after utilising the remaining $0.5 billion of
capital expenditure funding for Quellaveco from the Mitsubishi
subscription.
Attributable free cash flow*
The Group generated attributable free cash flow of $3.2 billion
(2017: $4.9 billion). Cash flows from operations of $7.8 billion
were offset by increased sustaining capital expenditure of $2.5
billion (2017: $2.1 billion), driven by stronger local currencies,
planned additional stay-in-business capital expenditure and
increased capitalised development and stripping expenditure. In
addition, there were higher tax payments at Metallurgical Coal and
Copper and an increase in dividend payments to minority
shareholders.
Dividends
In line with the Group's established dividend policy to pay out
40% of underlying earnings, the Board has proposed a dividend of 51
cents per share, equivalent to $660 million, bringing the total
dividends paid and proposed for the year to $1.00 per share (2017:
$1.02 per share).
NET DEBT*
$ million 2018 2017
------------------------------------------------ -------- --------
Opening net debt* at 1 January (4,501) (8,487)
------------------------------------------------ -------- --------
Underlying EBITDA* from subsidiaries and joint
operations 7,827 7,632
Working capital movements (30) 879
Other cash flows from operations (15) (136)
------------------------------------------------ -------- --------
Cash flows from operations 7,782 8,375
Capital expenditure* (2,818) (2,150)
Cash tax paid (1,393) (843)
Dividends from associates, joint ventures and
financial asset investments 738 517
Net interest(1) (315) (355)
Dividends paid to non-controlling interests (837) (601)
------------------------------------------------ -------- --------
Attributable free cash flow* 3,157 4,943
Dividends to Anglo American plc shareholders (1,291) (618)
Disposals 193 52
Foreign exchange and fair value movements (248) 135
Other net debt movements(2) (158) (526)
------------------------------------------------ -------- --------
Total movement in net debt*(3) 1,653 3,986
------------------------------------------------ -------- --------
Closing net debt* at 31 December (2,848) (4,501)
------------------------------------------------ -------- --------
(1) Includes cash outflows of $41 million (2017: inflows of $22
million), relating to interest payments on derivatives hedging net
debt, which are included in cash flows from derivatives related to
financing activities.
(2) Principally made up of the purchase of shares for employee
share schemes and losses recognised on bond buybacks, offset in
2018 by inflows related to the change in ownership interest in
Quellaveco.
(3) Net debt excludes the own credit risk fair value adjustment
on derivatives of $15 million (2017: $9 million).
Net debt (including related derivatives) of $2.8 billion
decreased by $1.7 billion, representing gearing of 9% (2017: 13%).
Net debt at 31 December 2018 comprised cash and cash equivalents of
$6.5 billion (2017: $7.8 billion) and gross debt, including related
derivatives, of $9.4 billion (2017: $12.3 billion). The reduction
in net debt was driven by $3.2 billion of attributable free cash
flow, partly offset by the payment of dividends to Group
shareholders in 2018 (dividend payments resumed in the second half
of 2017). During the year, there were inflows of $0.9 billion
related to the change in ownership interest in Quellaveco; this
inflow is being used to fund capital expenditure at the project,
with $0.5 billion remaining at 31 December 2018.
BALANCE SHEET
Net assets of the Group increased to $29.8 billion (2017: $28.9
billion) as the profit for the year more than offset the effects of
foreign exchange on operating assets denominated in local currency,
and dividend payments to Company shareholders and non-controlling
interests. Sustaining capital expenditure of $2.5 billion was
offset by depreciation and amortisation of $2.7 billion.
ATTRIBUTABLE ROCE*
Attributable ROCE was in line with the prior year at 19%.
Attributable underlying EBIT was $5.2 billion (2017: $5.1 billion),
reflecting higher prices, improved sales volumes at Metallurgical
Coal and Copper and the continued delivery of cost-efficiency
programmes across the Group, offset by inflation and the Minas-Rio
production stoppage. Average attributable capital employed was
constant at $27.4 billion owing to capital expenditure being
largely offset by depreciation and amortisation.
LIQUIDITY AND FUNDING
The Group's liquidity remains conservative at $13.9 billion
(2017: $16.8 billion), made up of $6.5 billion of cash (2017: $7.8
billion) and $7.3 billion of undrawn committed facilities (2017:
$9.0 billion). The reduction in Group liquidity, in line with our
strategy of lowering the cost of the overall capital structure, was
driven primarily by a continued focus on debt reduction and the
refinancing of a number of credit facilities outlined in the
transactions below. These were partially offset by strong positive
attributable free cash flow.
In March 2018, the Group completed the repurchase of $1.5
billion (including the cost of unwinding associated derivatives) of
US- and Euro-denominated bonds with maturities from April 2019 to
April 2021. The Group also issued a $0.7 billion 10-year bond in
the US bond markets.
In May 2018, the Group completed the repurchase of $0.6 billion
(including the cost of unwinding associated derivatives) of
US-denominated bonds with maturities between May 2020 and September
2020.
These transactions, as well as $1.3 billion of bond maturities
during 2018, have reduced short term refinancing requirements,
increased the weighted average maturity of outstanding bonds by
approximately one year to 5.0 years and reduced gross debt.
In March 2018, the Group replaced a number of credit facilities
maturing between March 2019 and March 2020, with a total value of
$5.4 billion, with a $4.5 billion credit facility maturing in March
2023.
PORTFOLIO UPGRADE
In 2018, the Group completed a number of transactions, including
the sale of our 88.2% interest in the Drayton thermal coal mine (on
care and maintenance since 2016) and the Drayton South project in
Australia. In South Africa, we completed the sale of the New Largo
thermal coal project and the Eskom-tied domestic thermal coal
operations, PGMs' 33% interest in the Bafokeng-Rasimone Platinum
Mine associate, as well as its 11% listed stake in Royal Bafokeng
Platinum, its 85% interest in Union mine and 50.1% interest in Masa
Chrome Company.
We also completed the acquisitions of the remaining 50% interest
in the Mototolo joint operation in South Africa from Glencore and
Kagiso Platinum Ventures; and in Canada, the Chidliak Diamond
Resource (through De Beers) through the acquisition of Peregrine
Diamonds Ltd.
Other transactions
In July 2018, Anglo American Platinum Limited (Platinum)
announced that it had subscribed for interests in two UK-based
venture capital funds. Platinum's commitment to the funds is
matched by a commitment from South Africa's Government Employees
Pension Fund represented by the Public Investment Corporation SOC
Limited.
Also in July, Anglo American completed a sale and leaseback
transaction with M&G Investments with the intention of
redeveloping and relocating the Group's London headquarters to
Charterhouse Street.
THE BOARD
In September 2018, Anglo American announced that Sir Philip
Hampton and Jack Thompson would step down from the Board after nine
years of service. On 31 December 2018, Sir Philip Hampton stepped
down from the Board as Senior Independent Director and chair of the
Remuneration Committee. On 1 January 2019, Dr Byron Grote, a
non-executive director since 2013 and chair of the Audit Committee
since 2014, was appointed as Senior Independent Director. With
effect from the same date, Anne Stevens, a non-executive director
since 2012, was appointed as chair of the Remuneration
Committee.
With effect from the close of the Annual General Meeting on 30
April 2019, Jack Thompson will step down from the Board as a
non-executive director and chair of the Sustainability Committee.
Ian Ashby, a non--executive director since 2017, will succeed Jack
Thompson as chair of the Sustainability Committee on 30 April
2019.
The names of the Directors and the skills and experience our
Board members contribute to the long-term sustainable success of
the Anglo American Group are set out in the Annual Report 2018 and
on the Group's website
www.angloamerican.com/about-us/leadership-team/board
PRINCIPAL RISKS AND UNCERTAINTIES
Anglo American plc is exposed to a variety of risks and
uncertainties which may have a financial, operational or
reputational impact on the Group, and which may also have an impact
on the achievement of social, economic and environmental
objectives.
The principal risks and uncertainties facing the Group at the
2018 year-end are set out in detail in the strategic report section
of the Annual Report 2018. The principal risks relate to the
following:
-- Catastrophic risks
-- Political and regulatory
-- Safety
-- Product prices
-- Corruption
-- Operational performance
-- Water
-- Cyber security
-- Future demand for PGMs
-- Future demand for diamonds
The Group is exposed to changes in the economic environment, as
with any other business. Details of any key risks and uncertainties
specific to the period are covered in the Operations review
section.
The Annual Report 2018 is available on the Group's website
www.angloamerican.com.
DE BEERS
Financial and operational metrics(1)
------------------------------------------------------------------------------------------------------------- -----
Underlying
Production Sales Unit Group Underlying EBITDA Underlying
volume volume Price cost* revenue* EBITDA* margin EBIT* Capex* ROCE*
-------------------------- ------- ------- ------- --------- ---------- ---------- ---------- ------ -----
'000 '000
cts cts(2) $/ct(3) $/ct(4) $m(5) $m $m $m(6)
-------------------------- ------- ------- ------- --------- ---------- ---------- ---------- ------ -----
De Beers 35,297 31,656 171 60 6,082 1,245 20% 694 417 8%
Prior year 33,454 32,455 162 63 5,841 1,435 25% 873 273 9%
Botswana (Debswana) 24,132 - 155 28 - 495 - 441 97 -
Prior year 22,684 - 159 28 - 484 - 447 86 -
Namibia
(Namdeb Holdings) 2,008 - 550 274 - 176 - 140 38 -
Prior year 1,805 - 539 257 - 176 - 146 33 -
South Africa
(DBCM) 4,682 - 109 54 - 163 - 58 177 -
Prior year 5,208 - 129 62 - 267 - 119 114 -
Canada(7) 4,475 - 144 52 - 231 - 78 127 -
Prior year 3,757 - 235 57 - 205 - 58 (5) -
Trading - - - - - 413 - 407 2 -
Prior year - - - - - 449 - 443 1 -
Other(8) - - - - - (233) - (430) (24) -
Prior year - - - - - (146) - (340) 44 -
------------------- ------ ------- ------- ------- --------- ---------- ---------- ---------- ------ -----
(1) Prepared on a consolidated accounting basis, except for
production, which is stated on a 100% basis except for the Gahcho
Kué joint venture in Canada, which is on an attributable 51%
basis.
(2) Consolidated sales volumes exclude pre-commercial production
sales volumes from Gahcho Kué. Total sales volumes (100%), which
are comparable to production, were 33.7 million carats (2017: 35.1
million carats). Total sales volumes (100%) include pre-commercial
production sales volumes from Gahcho Kué and De Beers Group's JV
partners' 50% proportionate share of sales to entities outside De
Beers Group from Diamond Trading Company Botswana and Namibia
Diamond Trading Company.
(3) Pricing for the mining business units is based on 100%
selling value post-aggregation of goods. The De Beers realised
price includes the price impact of the sale of non-equity product
and, as a result, is not directly comparable to De Beers unit
costs, which relate to equity production only.
(4) Unit cost is based on consolidated production and operating
costs, excluding depreciation and operating special items, divided
by carats recovered.
(5) Includes rough diamond sales of $5.4 billion (2017: $5.2 billion).
(6) In 2018, includes the acquisition of Peregrine Diamonds
Limited for a consideration of $87 million. In 2017, includes
pre-commercial production capitalised operating cash inflows from
Gahcho Kué.
(7) In 2017, price excludes Gahcho Kué contribution from sales
related to pre-commercial production, which were capitalised in the
first half of 2017. Unit costs include Gahcho Kué contribution
following achievement of commercial production on 2 March 2017.
(8) Other includes Element Six, downstream, acquisition accounting adjustments and corporate.
Financial and operational overview
Total revenue increased by 4% to $6.1 billion (2017: $5.8
billion), with rough diamond sales increasing by 4% to $5.4 billion
(2017: $5.2 billion), driven by improved overall consumer demand
for diamond jewellery and a 1% increase in the average rough
diamond price index. The average realised price increased by 6% to
$171/carat (2017: $162/carat), reflecting the lower proportion of
lower value rough diamonds being sold in the second half, which
resulted in a 2% decrease in consolidated sales volumes to 31.7
million carats (2017: 32.5 million carats). Other revenue also
increased owing to improved 'high end' jewellery sales at De Beers
Jewellers (consolidated for a full year in 2018, compared with nine
months in 2017), partly offset by a 5% decrease in Element Six
revenue due to a reduction in sales to the oil and gas market.
Underlying EBITDA decreased by 13% to $1,245 million (2017:
$1,435 million). While unit costs and upstream profit margins were
maintained, De Beers undertook incremental expenditure on a number
of new initiatives, including the launch of Lightbox Jewelry
(Lightbox(TM)), Tracr(TM) and Gemfair(TM), as well as increasing
expenditure in marketing, exploration and evaluation in Canada and
increasing provisions in respect of closure obligations. Margins in
the trading business were lower owing to volatile market
conditions, and the margin at Element Six decreased as a result of
lower sales to the oil and gas market.
Markets
Preliminary data for 2018 indicates an improvement in global
consumer demand for diamond jewellery, in US dollar terms. Global
growth during the first half of the year was driven by solid US and
Chinese consumer demand. However, during the second half, while the
US maintained its growth rate, increased political and policy
uncertainty and stock exchange volatility led to a general slowdown
of demand. Chinese demand also slowed following the escalation in
US-China trade tensions, slower economic growth and stock market
volatility. In India, the significant depreciation of the rupee
reduced local demand in US dollar terms.
The midstream started the year on a positive note due to healthy
demand for polished diamonds from US and Chinese retailers.
However, in the second half, the low-priced product segment came
under considerable pressure due to weak demand and surplus
availability, the rapid depreciation of the rupee and a reduction
in bank financing in the midstream. This resulted in a surplus of
low-priced polished diamonds at the end of the year, leading to
lower sales at the start of 2019.
Operational performance
Mining and manufacturing
Rough diamond production increased by 6% to 35.3 million carats
(2017: 33.5 million carats), which was in the lower half of the
production guidance range of 35-36 million carats.
In Botswana (Debswana), production increased by 6% to 24.1
million carats (2017: 22.7 million carats). Production at Jwaneng
was flat, as the effect of processing planned lower grades was
offset by a 12% increase in plant throughput. At Orapa, a 13%
increase in output was driven by higher plant utilisation and the
full effect of the successful restart of the Damtshaa
operation.
In Namibia (Namdeb Holdings), production increased by 11% to 2.0
million carats (2017: 1.8 million carats). Production from the
marine operation increased by 4%, driven by fewer in-port days for
the Mafuta crawler vessel and the adoption of a technology-led
approach for optimising the performance of the drill fleet.
Production at the land operations increased by 34% to 0.6 million
carats (2017: 0.4 million carats) as a result of access to
consistently higher grades, despite placing Elizabeth Bay onto care
and maintenance in December.
In South Africa (DBCM), production decreased by 10% to 4.7
million carats (2017: 5.2 million carats), owing to a period of
suspended production at Venetia following a fatal incident, as well
as lower run-of-mine ore grades experienced as the mine approaches
the end of the open pit. Output was also affected by the placing of
Voorspoed onto care and maintenance in the fourth quarter in
preparation for closure.
In Canada, production increased by 19% to 4.5 million carats
(2017: 3.8 million carats) due to the full year contribution from
Gahcho Kué, which entered commercial production in March 2017, and
higher grades at Victor. Victor is due to cease production in the
first half of 2019, when the open pit is expected to have been
depleted.
Brands
Significant progress was made across the De Beers Group brands
in 2018. De Beers Jewellers opened new stores in Hong Kong and in
Xi'an, China, and launched new franchise partnerships in Russia and
Saudi Arabia. In May, De Beers Jewellers also launched a new online
store in partnership with Farfetch, a global marketplace for the
luxury industry with a presence in 100 countries.
Forevermark(TM) is now available in more than 2,400 retail
outlets globally. New launches took place in Indonesia, Nepal,
Bangladesh, Germany and France, as well as the opening of its first
stand-alone store in Africa, in Botswana. In the year the brand
celebrated its 10th anniversary, it launched a new retail concept,
Libert'aime(TM), by Forevermark(TM).
De Beers Group launched a number of new initiatives in 2018.
Lightbox(TM), a laboratory-grown diamond fashion jewellery brand,
was launched in the US and recorded its first sales in September.
Tracr(TM), De Beers Group's blockchain project, was announced in
January 2018. GemFair(TM), an industry-wide pilot programme to
create a secure and transparent route to market for ethically
sourced artisanal and small-scale mined (ASM) diamonds, was
launched in April, with the first export of diamonds in
December.
Outlook
Although current economic forecasts remain positive, the outlook
for 2019 global diamond jewellery consumer demand faces a number of
headwinds, including the risk of a potential intensification of
US-China trade tensions, the Chinese government's ability to
rebalance economic growth towards consumption, and further exchange
rate volatility.
Production in 2019 is expected to be in the range of 31-33
million carats, subject to trading conditions. The lower production
is driven by the planned process of exiting from the Venetia open
pit, with the underground operation becoming the principal source
of ore from 2023. Associated with this, an increased proportion of
production in 2019 is expected to come from De Beers Group's joint
venture partners, a proportion of which generates a trading margin,
which is lower than the mining margin generated from own-mined
production.
COPPER
Financial and operational metrics
----------------------------------------------------------------------------------------------------------------------
Underlying
Production Sales Unit Group Underlying EBITDA Underlying
volume volume Price cost* revenue* EBITDA* margin(2) EBIT* Capex* ROCE*
-------------- ---------- ------- ------- ------- ----------- ---------- ----------- ---------- ------ -----
kt kt(1) c/lb(2) c/lb(3) $m(4) $m $m $m
-------------- ---------- ------- ------- ------- ----------- ---------- ----------- ---------- ------ -----
Copper 668 672 283 134 5,168 1,856 48% 1,234 703 22%
Prior year 579 580 290 147 4,233 1,508 41% 923 665 16%
Los Bronces 370 376 - 145 2,175 969 45% 625 217 -
Prior year 308 307 - 169 1,839 737 40% 401 245 -
Collahuasi(5) 246 243 - 105 1,460 960 66% 736 295 -
Prior year 231 232 - 113 1,314 806 61% 594 243 -
Quellaveco(6) - - - - - - - - 131 -
Prior year - - - - - - - - 128 -
Other
operations 53 53 - - 1,533 82 26% 28 60 -
Prior year 40 41 - - 1,080 76 16% 39 49 -
Projects and
corporate - - - - - (155) - (155) - -
Prior year - - - - - (111) - (111) - -
-------------- ---------- ------- ------- ------- ----------- ---------- ----------- ---------- ------ -----
(1) Excludes 178 kt third-party sales (2017: 111 kt).
(2) Realised price, excludes impact of third-party sales.
(3) C1 unit cost includes by-product credits.
(4) Revenue is shown after deduction of treatment and refining charges (TC/RCs).
(5) 44% share of Collahuasi production, sales and financials.
(6) Capex is presented on an attributable basis after deducting
direct funding from non-controlling interests. FY 2018 capex, on a
100% basis, was $505 million. $187 million was spent prior to
project approval on 26 July, of which the Group funded $131 million
and Mitsubishi funded $56 million. A further $318 million was spent
post-approval, of which the Group's 60% share was funded from the
Mitsubishi syndication transaction and hence is not included in
reported capex.
Financial and operational overview
Underlying EBITDA increased by 23% to $1,856 million (2017:
$1,508 million), driven by higher production and lower unit costs
across all operations. Unit costs decreased by 9% to 134 c/lb
(2017: 147 c/lb), the lowest since 2010, as a result of increased
production and continued sustainable cost savings at all operations
that fully offset the impact of inflation. Production increased by
15% to 668,300 tonnes (2017: 579,300 tonnes). At 31 December 2018,
179,100 tonnes of copper were provisionally priced at an average
price of 271 c/lb.
Markets
2018 2017
------------------------------- ----- -----
Average market price (c/lb) 296 280
Average realised price (c/lb) 283 290
------------------------------- ----- -----
The differences between market price and realised price are
largely a function of the timing of sales across the year and
provisional pricing adjustments.
The average LME cash copper price was 6% higher, though spot
prices closed the year 17% lower, despite falling exchange
inventories. Prices weakened notably from mid-year as trade
frictions between the US and China escalated. Furthermore, China's
efforts to rein in shadow financing resulted in tighter liquidity,
slowing growth across key copper-consuming sectors. Reflecting such
developments, funds generally showed a lack of risk appetite
through the year.
Operational performance
At Los Bronces, production increased by 20% to 369,500 tonnes
(2017: 308,300 tonnes) owing to strong mine and plant performance,
as well as planned higher grades (0.76% vs. 2017: 0.71%). C1 unit
costs decreased by 14% to 145 c/lb (2017: 169 c/lb) reflecting the
strong operational performance and higher by-product credits
(primarily molybdenum).
At Collahuasi, Anglo American's attributable share of copper
production was 246,000 tonnes, an increase of 7% (2017: 230,500
tonnes), representing another record year of copper in concentrate
production for the operation. Production benefited from strong
plant performance following the successful completion of planned
major maintenance of Line 3 (responsible for 60% of plant
throughput), the installation of 24 new flotation cells during the
first half of the year and planned higher grades (1.29% vs. 2017:
1.25%). C1 unit costs decreased by 7% to 105 c/lb (2017: 113 c/lb),
reflecting the strong production performance, additional stripping
credits and higher by-product credits.
Production at El Soldado increased by 30% to 52,700 tonnes
(2017: 40,500 tonnes), owing largely to the temporary suspension of
mine operations during the first half of 2017, which resulted in
6,000 tonnes of lost output, and planned higher ore grade (0.85%
vs. 2017: 0.69%). C1 unit costs decreased by 12% to 206 c/lb (2017:
233 c/lb).
QUELLAVECO UPDATE
Project approval and syndication
In July 2018, the Board approved the development of the
Quellaveco copper project in Peru, with an expected capital cost of
$5.0-$5.3 billion. At the same time, and aligned with the Group's
disciplined approach to capital allocation, agreement was reached
with Mitsubishi to increase its interest in Anglo American
Quellaveco S.A. (AAQSA) from 18.1% to 40% via the issuance of new
shares. Mitsubishi subscribed $500 million in upfront consideration
and an additional $351 million to fund its initial share of capital
expenditure, resulting in a total cash subscription of $851
million. The Group will receive up to a further $100 million in net
payments(1) from AAQSA conditional on the achievement of certain
prescribed throughput rates. As a result of the syndication
transaction, the Group's share of capital expenditure to develop
Quellaveco is $2.5-$2.7 billion.
Project update
Project execution is on track, benefiting from early works
completed during the feasibility study stage. All major
permits are in place. In line with plan, the diversion of the
Asana river was successfully completed in early December, the first
major milestone of the project. Engineering, contracting and
procurement are well advanced, with earthworks also meaningfully
progressed. The full complement of accommodation required for
workers will be available during the first half of 2019.
The priority in 2019 is to continue progressing earthworks and
start concrete works at the plant site. First production is due in
2022, with the ramp-up complete in 2023. The project will deliver
around 300,000 tonnes per annum of copper equivalent production on
average in the first 10 years of operation.
Total capital expenditure funded by the Group in 2018 was $131
million, representing the Group's attributable share prior to
project approval in July. Post-approval, capital expenditure (on a
100% basis) was $318 million, of which the Group's 60% share was
funded from the syndication transaction with Mitsubishi described
above.
Operational outlook
Production guidance for 2019 is 630,000-660,000 tonnes.
(1) The payment, by way of preference dividend, will be grossed
up to take account of the Group shareholding in AAQSA.
PLATINUM GROUP METALS
Financial and operational metrics
--------------------------------------------------------------------------------------------------------------------------- -----
Production Production Sales Underlying
volume volume volume Basket Unit Group Underlying EBITDA Underlying
platinum palladium platinum price cost* revenue* EBITDA* margin(5) EBIT* Capex* ROCE*
$/Pt $/Pt
koz(1) koz(1) koz(2) oz(3) oz(4) $m $m $m $m
--------------- ---------- ---------- ------------- ------ ----- -------- ---------- ---------- ---------- ------ -----
PGMs 2,485 1,611 2,424 2,219 1,561 5,680 1,062 29% 705 496 15%
Prior year 2,397 1,557 2,505 1,966 1,443 5,078 866 26% 512 355 10%
Mogalakwena 495 541 492 2,759 1,398 1,367 623 46% 478 210 -
Prior year 464 509 467 2,590 1,179 1,211 578 48% 448 151 -
Amandelbult 443 205 445 2,222 1,717 996 153 15% 96 74 -
Prior year 438 202 459 1,868 1,596 858 88 10% 34 34 -
Other
operations(6) 386 268 367 - - 1,100 132 12% 9 212 -
Prior year 474 297 497 - - 1,125 83 7% (59) 170 -
Purchase
of
concentrate(7) 1,161 597 1,120 - - 2,217 218 10% 186 - -
Prior year 1,021 549 1,082 - - 1,884 173 9% 145 - -
Projects
and corporate - - - - - - (64) - (64) - -
Prior year ---- - - - - - (56) - (56) - -
--------------- ---------- ---------- ------------- ------ ----- -------- ---------- ---------- ---------- ------ -----
(1) Production disclosure reflects own-mined production and
purchase of metal in concentrate.
(2) Sales volumes exclude the sale of refined metal purchased
from third parties.
(3) Average US$ realised basket price. Excludes the impact of
the sale of refined metal purchased from third parties.
(4) Total cash operating costs - includes on-mine, smelting and
refining costs only.
(5) Underlying EBITDA margins exclude the impact of the sale of
refined metal purchased from third parties. In addition, the total
PGMs margin excludes purchase of concentrate.
(6) Includes Unki, Union (prior to disposal), Mototolo
(post-acquisition), PGMs' share of joint operations and revenue
from trading activities.
(7) Purchase of concentrate from joint operations, associates
and third parties for processing into refined metals.
Financial and operational overview
Underlying EBITDA increased by 23% to $1,062 million (2017: $866
million), largely as a result of a 13% increase in the basket price
driven by stronger prices for palladium, rhodium, ruthenium and
nickel. Unit costs increased by 8% to $1,561/ounce (2017:
$1,443/ounce) due to the impact of inflation and a change in mine
plan at Mogalakwena leading to an increase in waste mined and a
reduction in ore stockpiled.
Markets
2018 2017
--------------------------------------- ------- -------
Average platinum market price ($/oz) 880 950
Average palladium market price ($/oz) 1,029 871
Average rhodium market price ($/oz) 2,214 1,097
Average gold market price ($/oz) 1,269 1,258
US$ realised basket price ($/Pt oz) 2,219 1,966
Rand realised basket price (R/Pt oz) 29,601 26,213
--------------------------------------- ------- -------
Strong prices for palladium, rhodium and the minor platinum
group metals outweighed a 7% decline in the platinum price during
2018, with the basket price climbing by 13% in dollar terms as a
result. The platinum price was driven lower, primarily by a decline
in the share of diesel engines in the European car sector. Despite
disappointing global car sales, tighter global emissions regulation
supported the prices of palladium and rhodium, with their average
price for the year increasing by 18% and 102% respectively.
Operational performance
Total platinum production (metal in concentrate) increased by 4%
to 2,484,700 ounces (2017: 2,397,400 ounces), while total palladium
output was 3% higher at 1,610,800 ounces (2017: 1,557,400
ounces).
Own-mined production
Own-mined production is inclusive of ounces from Mogalakwena,
Amandelbult, Unki, Union (prior to its disposal on 1 February
2018), and 50% of joint operation production, with 100% of Mototolo
from 1 November 2018, following the completion of the acquisition
of the remaining 50% on this date.
Own-mined platinum production decreased by 4% to 1,323,600
ounces (2017: 1,376,200 ounces), while palladium production
increased marginally to 1,013,500 ounces (2017: 1,008,700).
Excluding Union, own--mined platinum production increased by 7% to
1,312,000 ounces (2017: 1,221,700) and palladium production
increased by 8% to 1,008,300 ounces (2017: 937,300) on the back of
a strong operational performance across the portfolio.
Mogalakwena's platinum production increased by 7% to 495,100
ounces (2017: 463,800 ounces), and palladium production increased
by 6% to 540,900 ounces (2017: 508,900 ounces) through mining a
higher grade area as planned, as well as optimisation of the
primary mill at the North concentrator plant which led to improved
throughput and metal recovery.
At Amandelbult, platinum production increased by 1% to 442,700
ounces (2017: 438,000 ounces), and palladium output by 1% to
205,100 ounces (2017: 202,500 ounces) as increased underground
production was delivered to the concentrator, primarily from
Dishaba's underground operations. Dishaba mine development work led
to a 7% increase in immediately stope-able reserves.
Platinum production from other operations decreased by 19% to
385,800 ounces (2017: 474,400 ounces) and palladium production by
10% to 267,600 ounces (2017: 297,300 ounces), driven by the sale of
Union mine to Siyanda Resources (Siyanda) on 1 February 2018, from
which date Union production was purchased as concentrate. Excluding
Union, platinum production from other operations increased by 17%,
driven by PGMs' share of platinum production from joint operations
increasing by 10% to 270,800 ounces (2017: 245,300 ounces) and its
share of palladium production increasing by 9% to 176,000 ounces
(2017: 161,500 ounces), as well as the acquisition of the remaining
50% of Mototolo on 1 November 2018.
Purchase of concentrate
Purchase of concentrate increased by 14% and 9% for platinum and
palladium respectively. The inclusion of concentrate from Union
following the sale to Siyanda was partly offset by the removal of
unprofitable ounces following the closure of Bokoni, which was
placed onto care and maintenance in 2017.
Refined production
Refined platinum production decreased by 4% to 2,402,400 ounces
(2017: 2,511,900 ounces), while refined palladium output decreased
by 10% to 1,501,800 ounces (2017: 1,668,500 ounces). The reduction
was primarily attributable to the planned rebuild of Mortimer
smelter in the second quarter of 2018; the partial rebuild at
Polokwane smelter which was completed during the second half of the
year; commissioning of the Unki smelter in the third quarter; and
maintenance work on other processing assets, which collectively
resulted in a build-up of work-in-progress inventory. Furthermore,
2017 refined production included 130,000 platinum ounces (and
associated PGMs) that were toll-refined by a third party following
the Waterval Furnace 1 run-out in 2016. It is expected that the
build-up of work-in-progress inventory will be processed in full
during 2019.
Sales volumes
Platinum sales volumes, excluding refined metals purchased from
third parties, decreased by 3% to 2,424,200 ounces (2017: 2,504,600
ounces), while palladium sales decreased by 4% to 1,513,100 ounces
(2017: 1,571,700 ounces). The overall decrease resulted from lower
refined production, compensated in part by a drawdown in refined
platinum inventory levels. In comparison, there were high sales
volumes in 2017 owing to the refining of the backlog of material
from the Waterval smelter run-out in the fourth quarter of 2016.
Trading activities generated further sales volumes of 94,000
platinum ounces and 124,500 palladium ounces.
Operational outlook
From 1 January 2019, Sibanye 4E(1) material is no longer
purchased as concentrate, but toll-treated, with the refined metal
returned to Sibanye. As a result, platinum production (metal in
concentrate) for 2019 is expected to be lower than for 2018 at
2.0-2.1 million ounces. Palladium production (metal in concentrate)
for 2019 is expected to be 1.3-1.4 million ounces.
(1) Platinum, palladium, rhodium and gold.
IRON ORE
Financial and operational metrics
----------------------------------------------------------------------------------------------------------------------
Underlying
Production Sales Unit Group Underlying EBITDA Underlying
volume volume Price cost* revenue* EBITDA* margin EBIT* Capex* ROCE*
------------- ---------- ------- ------ ------- ------------ ---------- ------------ ---------- ------ -----
Mt(1) Mt $/t(2) $/t(3) $m $m $m $m
------------- ---------- ------- ------ ------- ------------ ---------- ------------ ---------- ------ -----
Iron Ore - - - - 3,768 1,177 31% 747 415 3%
Prior year - - - - 4,891 1,828 37% 1,500 252 15%
Kumba Iron
Ore 43.1 43.3 72 32 3,440 1,544 45% 1,213 309 42%
Prior year 45.0 44.9 71 31 3,486 1,474 42% 1,246 229 47%
Iron Ore
Brazil
(Minas-Rio) 3.4 3.2 70 - 328 (272) - (371) 106 (9)%
Prior year 16.8 16.5 65 30 1,405 435 31% 335 23 6%
Projects and
corporate - - - - - (95) - (95) - -
Prior year - - - - - (81) - (81) - -
------------- ---------- ------- ------ ------- ------------ ---------- ------------ ---------- ------ -----
(1) Minas-Rio production is Mt (wet basis).
(2) Prices for Kumba Iron Ore are the average realised export
basket price (FOB Saldanha). Prices for Minas-Rio are the average
realised export basket price (FOB Açu) (wet basis).
(3) Unit costs for Kumba Iron Ore are on an FOB dry basis. Unit
costs for Minas-Rio are not disclosed for 2018, due to the
suspension of operations; 2017 unit costs are on an FOB wet
basis.
Financial and operational overview
Kumba
Underlying EBITDA increased by 5% to $1,544 million (2017:
$1,474 million), mainly driven by a $1/tonne increase in the
average realised iron ore price, partly offset by a 4% decrease in
export sales volumes and a 3% increase in FOB unit costs. The
increase in unit costs was driven by lower production, higher strip
ratios and higher fuel costs, largely offset by operational
efficiencies and cost-saving initiatives.
Sales volumes decreased by 4% to 43.3 Mt (2017: 44.9 Mt) owing
to the impact of third-party rail constraints and single loading of
vessels resulting from the scheduled refurbishment of the
shiploader by Transnet at Saldanha Port in the second half of 2018.
Consequently, total finished stock held at the mines and port
increased to 5.3 Mt (2017: 4.3 Mt).
Minas-Rio
Minas-Rio recorded an underlying EBITDA loss of $272 million
(2017: $435 million gain), reflecting the suspension of operations
from March 2018, following the two leaks in the 529 kilometre iron
ore pipeline from the mine to the Port of Açu.
Markets
2018 2017
---------------------------------------------------------------- ----- -----
Average market price (IODEX 62% Fe CFR China - $/tonne) 69 71
Average market price (MB 66% Fe Concentrate CFR - $/tonne) 95 87
Average realised price (Kumba export - $/tonne) (FOB Saldanha) 72 71
Average realised price (Minas-Rio - $/tonne) (FOB wet basis) 70 65
---------------------------------------------------------------- ----- -----
Kumba's outperformance over the IODEX (Platts) 62% Fe CFR China
index was primarily due to the higher iron (Fe) content and the
relatively high proportion (approximately 68%) of lump in the
overall product portfolio.
Minas-Rio also produces higher grade products (higher iron
content and lower gangue) than the reference product used for the
IODEX 62% Fe CFR China index. IODEX 62% is referred to for
comparison purposes only.
Operational performance
Kumba
Total production decreased by 4% to 43.1 Mt (2017: 45.0 Mt), in
response to higher stock levels arising from Transnet's rail
constraints. Production volumes were also affected by a small
decrease in processing plant yields as Kumba focused on producing
high quality products to maximise the value of tonnes railed to
port and benefit from the strong demand for premium, high grade
ore.
In line with its strategy, production at Sishen reduced by 6% to
29.2 Mt (2017: 31.1 Mt), while output at Kolomela remained constant
at 13.9 Mt. Waste stripping at Sishen increased by 13% to 182.1 Mt
(2017: 161.7 Mt), with continued improvements in efficiencies
through increased primary mining equipment productivity. Consistent
production performance at Kolomela led to a 1% increase in waste
stripping to 56.0 Mt (2017: 55.6 Mt).
Minas-Rio
Production decreased by 80% to 3.4 Mt (2017: 16.8 Mt) following
the suspension of operations since March 2018. The resumption of
the operations occurred following the receipt of the appropriate
regulatory approvals on 20 December, and an extensive and detailed
technical inspection and the precautionary replacement of certain
sections of the pipeline.
Operational outlook
Kumba
Kumba's production guidance for 2019 is 43-44 Mt, with waste
movement for Sishen and Kolomela expected to be 170-180 Mt and
55-60 Mt, respectively.
Minas-Rio
A key regulatory approval relating to the Minas-Rio Step 3
licence area was granted on 21 December 2018, providing greater
operational flexibility and access to higher grade iron ore to
support the increase of production towards the full design capacity
of 26.5 Mtpa. As a result, 2019 production guidance for Minas-Rio
was increased to 18-20 Mt (previously 16-19 Mt). In addition, 2019
unit cost guidance was reduced to $28--31/tonne (previously
$30-33/tonne). Construction is under way for the next tailings dam
lift and we expect to be ready for the normal process of conversion
of the installation licence to an operating licence in the second
quarter of 2019.
Legal
Sishen consolidated mining right granted
Sishen's application to extend the mining right area to include
the Dingleton properties through the inclusion of the adjacent
Prospecting Rights was granted on 25 June 2017 and notarially
executed on 29 June 2018. The grant allows Sishen mine to expand
its current mining operations within the adjacent Dingleton
area.
Kolomela consolidated mining right granted
The Section 102 application to amend the Kolomela mining right
and the mining work programme to include Heuningkranz and portion 1
of Langverwacht was granted on 14 October 2018. The environmental
authorisation was approved on 7 November 2018. The grant allows
Kolomela mine to expand its current mining operations within the
adjacent Heuningkranz area.
The transfer of Thabazimbi to ArcelorMittal SA
Sishen Iron Ore Company Proprietary Limited (SIOC) and
ArcelorMittal SA entered into an agreement in 2016 to transfer
Thabazimbi mine to ArcelorMittal SA, subject to the fulfilment of
certain conditions precedent. On 12 October 2018, Kumba and
ArcelorMittal South Africa announced that all the conditions
precedent to the transfer of Thabazimbi mine, together with the
mining rights, had either been fulfilled or waived. The employees,
assets and liabilities, as well as the mining rights and the
assumed liabilities of the mine, were transferred at a nominal
purchase consideration from SIOC to Thabazimbi Iron Ore Mine (Pty)
Ltd, a wholly--owned subsidiary of ArcelorMittal South Africa,
previously ArcelorMittal South Africa Operations (Pty) Ltd, on 1
November 2018.
COAL
Financial and operational metrics
-------------------------------------------------------------------------------------------------------------------
Underlying
Production Sales Unit Group Underlying EBITDA Underlying
volume volume Price cost* revenue* EBITDA* margin(5) EBIT* Capex* ROCE*
---------------- ---------- ------- ------ ------ --------- ---------- ---------- ---------- ------ -----
Mt(1) Mt(2) $/t(3) $/t(4) $m $m $m $m
---------------- ---------- ------- ------ ------ --------- ---------- ---------- ---------- ------ -----
Coal 50.4 50.4 - - 7,788 3,196 46% 2,538 722 67%
Prior year 48.9 49.0 - - 7,211 2,868 46% 2,274 568 67%
Metallurgical
Coal 21.8 22.0 190 64 4,231 2,210 52% 1,774 574 80%
Prior year 19.7 19.8 185 61 3,675 1,977 54% 1,594 416 86%
Thermal Coal
- South Africa 18.4 18.3 87 44 2,719 695 37% 566 148 68%
Prior year 18.6 18.6 76 44 2,746 588 32% 466 152 54%
Thermal Coal
- Colombia 10.2 10.1 83 36 838 388 46% 295 - 35%
Prior year 10.6 10.6 75 31 790 385 49% 296 - 35%
Projects
and corporate - - - - - (97) - (97) - -
Prior year - - - - - (82) - (82) - -
---------------- ---------- ------- ------ ------ --------- ---------- ---------- ---------- ------ -----
(1) Production volumes are saleable tonnes. South African
production volumes include export primary production, secondary
production sold into export markets and production sold
domestically at export parity pricing and excludes Eskom-tied
operations production of 2.8 Mt (2017: 23.9 Mt) and other domestic
production of 10.9 Mt (2017: 7.5 Mt). Metallurgical Coal production
volumes exclude thermal coal production of 1.4 Mt (2017: 1.6
Mt).
(2) South African sales volumes include export primary
production, secondary production sold into export markets and
production sold domestically at export parity pricing and exclude
domestic sales of 10.3 Mt (2017: 8.2 Mt), Eskom-tied operations
sales of 2.8 Mt (2017: 23.9 Mt) and non-equity traded sales of 9.5
Mt (2017: 7.6 Mt). Metallurgical Coal sales volumes exclude thermal
coal sales of 1.6 Mt (2017: 1.8 Mt).
(3) Metallurgical Coal realised price is the weighted average
hard coking coal and PCI sales price achieved. Thermal Coal - South
Africa realised price is the weighted average export thermal coal
price achieved. Excludes third-party sales.
(4) FOB cost per saleable tonne, excluding royalties.
Metallurgical Coal excludes study costs. Thermal Coal - South
Africa unit cost is for the trade operations.
(5) Excludes impact of third-party sales and Eskom-tied operations.
Financial and operational overview
Metallurgical Coal
Underlying EBITDA increased by 12% to $2,210 million (2017:
$1,977 million), owing to an 11% increase in sales volumes and a 3%
improvement in the realised price for metallurgical coal. US dollar
unit costs increased by 5% to $64/tonne (2017: $61/tonne), as a
result of establishing new mining areas to achieve further
productivity improvements, the impact of additional longwall moves
and cost inflation.
Thermal Coal - South Africa
Underlying EBITDA increased by 18% to $695 million (2017: $588
million), driven by a 14% increase in the realised export thermal
coal price. Export sales decreased by 2% to 18.3 Mt (2017: 18.6
Mt), while domestic sales increased by 26% to 10.3 Mt (2017: 8.2
Mt). US dollar unit costs for the export trade were in line with
the prior year at $44/tonne as productivity improvements and cost
savings offset the 8% inflation impact.
The sale of the Eskom-tied domestic thermal coal operations,
comprising New Vaal, New Denmark, and Kriel
collieries, as well as four closed collieries, to Seriti
Resources was completed on 1 March 2018. Production from these
assets, until the date of completion, was 2.8 Mt.
Thermal Coal - Colombia
Underlying EBITDA increased marginally to $388 million (2017:
$385 million), with an 11% increase in prices offsetting lower
volumes arising from permitting delays and weather impacts in the
fourth quarter.
Markets
Metallurgical coal
2018 2017
----------------------------------------------------------------------------- ----- -----
Average market price for premium low-volatile hard coking coal ($/tonne)(1) 207 188
Average market price for premium low-volatile PCI ($/tonne)(1) 136 119
Average realised price for premium low-volatile hard coking coal ($/tonne) 194 187
Average realised price for PCI ($/tonne) 128 125
----------------------------------------------------------------------------- ----- -----
(1) Represents average spot prices.
Average realised prices differ from the average market price
owing to differences in material grade and timing
of contracts.
Market prices in 2018 were supported by strong steelmaking
margins globally and a number of supply disruptions in
Australia.
Thermal coal
2018 2017
------------------------------------------------------------- ----- -----
Average market price ($/tonne, FOB Australia) 107 89
Average market price ($/tonne, FOB South Africa) 98 84
Average market price ($/tonne, FOB Colombia) 85 78
Average realised price - Export Australia ($/tonne, FOB) 103 91
Average realised price - Export South Africa ($/tonne, FOB) 87 76
Average realised price - Domestic South Africa ($/tonne) 19 21
Average realised price - Colombia ($/tonne, FOB) 83 75
------------------------------------------------------------- ----- -----
The average realised price for export thermal coal was 89% of
the average market price due to timing and quality differences
relative to the industry benchmark. The difference in the realised
price compared with the market price, between 2017 and 2018,
reflects a changing quality mix owing to a higher proportion of
secondary products being sold into the export market.
Solid demand from South Korea and Japan underpinned the prices
for higher energy coals in the Pacific region. Various supply
issues in Australia also affected the availability of these higher
energy coals. Chinese import demand decreased in the second half of
the year as domestic stocks were rebuilt and a rebound in supply
from Indonesia and South Africa increased the discounts for lower
energy material.
Operational performance
Metallurgical Coal
Total production increased by 11% to 21.8 Mt, largely driven by
higher production from the underground longwall operations which
increased by 15% to 14.2 Mt (2017: 12.3 Mt). The increase was
driven by sustained strong performance at Moranbah, which improved
on its previous record and produced 6.8 Mt; and Grosvenor, which
increased output to 3.8 Mt. Grasstree's production decreased by 25%
to 3.6 Mt, marginally above planned volumes, as the operation moved
into more challenging areas of the mine as it nears its end of life
and undertook an additional longwall move in the year.
Thermal Coal - South Africa
Export production decreased by 1% to 18.4 Mt (2017: 18.6 Mt) as
operations continued to transition between mining areas. Total
production from the Export mines increased by 12% to 24.6 Mt (2017:
22.0 Mt), driven by productivity-led growth from the underground
operations. Total output benefited as market prices allowed the
processing of mineral residue deposits (MRD), which generates
earnings and avoids capital expenditure for the MRD expansions, as
well as helping to mitigate future rehabilitation costs. MRD
production can be sold either into the domestic or export
markets.
Thermal Coal - Colombia
Anglo American's attributable production from its 33.3%
ownership of Cerrejón decreased by 4% to 10.2 Mt (2017: 10.6
Mt).
Operational outlook
Metallurgical coal
Full year 2019 production guidance for metallurgical coal is
22-24 Mt.
Export thermal coal
Full year 2019 production guidance for export thermal coal is
26-28 Mt.
NICKEL AND MANGANESE
Financial and operational metrics
--------------------------------------------------------------------------------------------------------------------
Underlying
Production Sales Unit Group Underlying EBITDA Underlying
volume volume Price cost* revenue* EBITDA* margin EBIT* Capex* ROCE*
------------ ---------- ------- ------- ------- --------- ---------- ---------- ---------- ------ --------
t(1) t(1) c/lb(2) c/lb(3) $m $m(3) $m(4) $m
------------ ---------- ------- ------- ------- --------- ---------- ---------- ---------- ------ --------
Nickel and
Manganese - - - - 1,707 844 49% 685 38 28%
Prior year - - - - 1,391 610 44% 478 28 20%
Nickel 42,300 43,100 588 361 560 181 32% 75 38 4%
Prior year 43,800 43,000 476 365 451 81 18% 0 28 0%
Samancor(5) 3.8 3.7 - - 1,147 663 58% 610 - 159%
Prior year 3.6 3.6 - - 940 529 56% 478 - 115%
------------ ---------- ------- ------- ------- --------- ---------- ---------- ---------- ------ ------
(1) Nickel production and sales are tonnes (t). Samancor
production and sales are million tonnes (Mt).
(2) Realised price
(3) C1 unit cost.
(4) Nickel segment includes $8 million projects and corporate costs (2017: $8 million).
(5) Production, sales and financials include ore and alloy.
Financial and operational overview
Nickel
Underlying EBITDA increased by 123% to $181 million (2017: $81
million), primarily reflecting the higher nickel price.
Nickel unit costs decreased by 1% to 361 c/lb (2017: 365 c/lb),
despite lower production, driven by improved operational stability
and the effect of favourable exchange rates, partly offset by
higher energy prices.
Samancor
Underlying EBITDA increased by 25% to $663 million (2017: $529
million), driven mainly by the continued improvement in manganese
ore prices.
Markets
Nickel
2018 2017
------------------------------- ----- -----
Average market price (c/lb) 595 472
Average realised price (c/lb) 588 476
------------------------------- ----- -----
The average market price is the LME nickel price, from which
ferronickel pricing is derived. Ferronickel is traded based on
discounts or premiums to the LME price, depending on market
conditions, supplier products and consumer preferences. Differences
between market prices and realised prices are largely due to
variances between the LME and the ferronickel price.
The nickel price increased by 26% to an average of 595 c/lb in
2018, with strong demand growth maintaining the market deficit. In
the second half of the year, however, prices came under pressure
from macro-economic worries, including heightening trade war
concerns. Stainless steel production (around 70% of nickel demand)
increased to record levels in 2018, while nickel consumption in
batteries increased by more than 30%, as demand for zero emission
vehicles and lithium-ion based energy storage continued to
accelerate.
Samancor
The average 2018 benchmark manganese ore price (Metal Bulletin
44% manganese ore CIF China) increased by 23% to $7.24/dmtu (2017:
$5.91/dmtu) due to continuing strong demand from China's steel
manufacturing sector.
Operational performance
Nickel
Nickel output decreased by 3% to 42,300 tonnes (2017: 43,800
tonnes) owing to a 40-day planned maintenance stoppage at Barro
Alto in the first half of 2018. Barro Alto produced 33,500 tonnes
(2017: 34,900 tonnes), while Codemin produced 8,800 tonnes (2017:
8,900 tonnes).
Samancor
Attributable manganese ore production increased by 3% to 3.6 Mt
(2017: 3.5 Mt). Production from the Australian operations increased
by 10% due to improved concentrator availability, the effect of
more favourable weather conditions and increased premium
concentrate ore (PC02) production. Ore production from the South
African operations decreased by 6% as an increase in higher quality
premium material was more than offset by a decline in fine grained
secondary products.
Attributable production of manganese alloys increased by 5% to
157,000 tonnes (2017: 149,000 tonnes), mainly as a result of
improved furnace stability at the Australian operations for the
majority of the year. In South Africa, manganese alloy production
improved by 6% while continuing to utilise only one of the
operation's four furnaces.
Operational outlook
Nickel
Production guidance for 2019 is 42,000-44,000 tonnes.
CORPORATE AND OTHER
Financial metrics
---------------------------------------------------------------------
Group Underlying Underlying
revenue* EBITDA* EBIT* Capex*
---------------------- ---------- ----------- ----------- -------
$m $m $m $m
---------------------- ---------- ----------- ----------- -------
Segment 3 (219) (226) 27
Prior year 5 (292) (313) 9
Exploration - (113) (113) -
Prior year - (103) (103) -
Corporate activities
and unallocated
costs 3 (106) (113) 27
Prior year 5 (189) (210) 9
---------------------- ---------- ----------- ----------- -------
Financial overview
Corporate and other reported an underlying EBITDA loss of $219
million (2017: $292 million loss).
Exploration
Exploration's underlying EBITDA loss increased to $113 million
(2017: $103 million loss), reflecting increased exploration
activities across most product groups, but predominantly in
diamonds.
Corporate activities and unallocated costs
Underlying EBITDA amounted to a $106 million loss (2017: $189
million loss), driven primarily by a year--on--year gain recognised
in the Group's self-insurance entity, reflecting lower net claims
and settlements during 2018, as well as higher premium income.
For further information, please contact:
Media Investors
UK UK
James Wyatt-Tilby Paul Galloway
james.wyatt-tilby@angloamerican.com paul.galloway@angloamerican.com
Tel: +44 (0)20 7968 8759 Tel: +44 (0)20 7968 8718
Marcelo Esquivel Robert Greenberg
marcelo.esquivel@angloamerican.com robert.greenberg@angloamerican.com
Tel: +44 (0)20 7968 8891 Tel: +44 (0)20 7968 2124
South Africa Emma Waterworth
Pranill Ramchander emma.waterworth@angloamerican.com
pranill.ramchander@angloamerican.com Tel: +44 (0)20 7968 8574
Tel: +27 (0)11 638 2592
Ann Farndell
ann.farndell@angloamerican.com
Tel: +27 (0)11 638 2786
Notes to editors:
Anglo American is a global diversified mining business and our
products are the essential ingredients in almost every aspect of
modern life. Our portfolio of world-class competitive mining
operations and undeveloped resources provides the metals and
minerals to meet the growing consumer-driven demands of the world's
developed and maturing economies. With our people at the heart of
our business, we use innovative practices and the latest
technologies to discover new resources and mine, process, move and
market our products to our customers around the world.
As a responsible miner - of diamonds (through De Beers), copper,
platinum and other precious metals, iron ore, coal and nickel - we
are the custodians of what are precious natural resources. We work
together with our key partners and stakeholders to unlock the
sustainable value that those resources represent for our
shareholders, the communities and countries in which we operate and
for society at large. Anglo American is re-imagining mining to
improve people's lives.
www.angloamerican.com
Webcast of presentation:
A live webcast of the results presentation, starting at 9.00am
UK time on 21 February 2019, can be accessed through the Anglo
American website at www.angloamerican.com
Note: Throughout this results announcement, '$' denotes United
States dollars and 'cents' refers to United States cents. Tonnes
are metric tons, 'Mt' denotes million tonnes and 'kt' denotes
thousand tonnes, unless otherwise stated.
Forward-looking statements:
This announcement includes forward-looking statements. All
statements other than statements of historical facts included in
this announcement, including, without limitation, those regarding
Anglo American's financial position, business, acquisition and
divestment strategy, dividend policy, plans and objectives of
management for future operations (including development plans and
objectives relating to Anglo American's products, production
forecasts and Ore Reserves and Mineral Resource estimates), are
forward-looking statements. By their nature, such forward-looking
statements involve known and unknown risks, uncertainties and other
factors which may cause the actual results, performance or
achievements of Anglo American, or industry results, to be
materially different from any future results, performance or
achievements expressed or implied by such forward-looking
statements. Such forward-looking statements are based on numerous
assumptions regarding Anglo American's present and future business
strategies and the environment in which Anglo American will operate
in the future. Important factors that could cause Anglo American's
actual results, performance or achievements to differ materially
from those in the forward-looking statements include, among others,
levels of actual production during any period, levels of global
demand and commodity market prices, mineral resource exploration
and development capabilities, recovery rates and other operational
capabilities, the availability of mining and processing equipment,
the ability to produce and transport products profitably, the
availability of transportation infrastructure, the impact of
foreign currency exchange rates on market prices and operating
costs, the availability of sufficient credit, the effects of
inflation, political uncertainty and economic conditions in
relevant areas of the world, the actions of competitors, activities
by governmental authorities such as permitting and changes in
taxation or safety, health, environmental or other types of
regulation in the countries where Anglo American operates,
conflicts over land and resource ownership rights and such other
risk factors identified in Anglo American's most recent Annual
Report. Forward-looking statements should, therefore, be construed
in light of such risk factors and undue reliance should not be
placed on forward-looking statements. These forward-looking
statements speak only as of the date of this announcement. Anglo
American expressly disclaims any obligation or undertaking (except
as required by applicable law, the City Code on Takeovers and
Mergers (the "Takeover Code"), the UK Listing Rules, the Disclosure
and Transparency Rules of the Financial Conduct Authority, the
Listings Requirements of the securities exchange of the JSE Limited
in South Africa, the SIX Swiss Exchange, the Botswana Stock
Exchange and the Namibian Stock Exchange and any other applicable
regulations) to release publicly any updates or revisions to any
forward-looking statement contained herein to reflect any change in
Anglo American's expectations with regard thereto or any change in
events, conditions or circumstances on which any such statement is
based.
Nothing in this announcement should be interpreted to mean that
future earnings per share of Anglo American will necessarily match
or exceed its historical published earnings per share.
Certain statistical and other information about Anglo American
included in this announcement is sourced from publicly available
third-party sources. As such, it has not been independently
verified and presents the views of those third parties, though
these may not necessarily correspond to the views held by Anglo
American and Anglo American expressly disclaims any responsibility
for, or liability in respect of, such third-party information.
Anglo American plc
20 Carlton House Terrace London SW1Y 5AN United Kingdom
Registered office as above. Incorporated in England and Wales
under the Companies Act 1985.
Registered Number: 3564138 Legal Entity Identifier:
549300S9XF92D1X8ME43
This information is provided by RNS, the news service of the
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END
FR PGUCUPUPBGMU
(END) Dow Jones Newswires
February 21, 2019 02:00 ET (07:00 GMT)
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