TIDMAAL

RNS Number : 2533E

Anglo American PLC

27 October 2022

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27 October 2022

Anglo American plc

Production Report for the third quarter ended 30 September 2022

Duncan Wanblad, Chief Executive of Anglo American , said : "Our performance stepped up 16% (1) quarter-on-quarter amid a challenging operating environment, driven by the ongoing ramp-up of our Steelmaking Coal longwall operations and continued strong performance at De Beers. Our new world-class copper mine in Peru, Quellaveco, continues to ramp-up production with shipments to customers now under way. Production in the third quarter was broadly flat (1) compared to the same period in 2021, as higher production from Quellaveco, Steelmaking Coal and De Beers was offset primarily by expected lower copper ore grades in Chile and some operational challenges at our Kumba iron ore business.

"As we move through the final quarter, we are focused on maintaining this operational momentum to deliver our full year guidance. The continued safe ramp-up of our steelmaking coal operations, as well as further performance improvements at our iron ore businesses, are priorities to set the platform for delivery into next year. We do continue to feel the effects of dislocations in the global economy on our business - in energy and across supply chains and labour markets - and are planning accordingly for 2023, confident in the strategic position of our business.

"We continue to make important progress towards our holistic sustainability commitments. With renewable electricity supply secured for all our South America operations, we have now formed our renewable energy partnership with EDF Renewables in South Africa. Our new jointly owned company, Envusa Energy, is developing its first phase of more than 600 MW of wind and solar projects, a major step towards our vision of a 3-5 GW renewable energy ecosystem in the region by 2030. The issuance of our first sustainability-linked bond, a first of its kind from a major diversified mining company, re-affirms our commitment to our targets to reduce greenhouse gas emissions and fresh water abstraction and to support job creation in the communities where we operate."

Q3 2022 highlights

-- Rough diamond production increased by 4%, principally reflecting the treatment of higher grade ore at Orapa (Botswana) as well as continued strong performance in Namibia.

-- Steelmaking coal production increased by 28%, reflecting the ongoing ramp-up of the longwall operations. Continuing to do so in a safe and stable way is our first priority.

-- Copper production decreased by 6%, due to planned lower grades at all our operations in Chile, as well as unfavourable ore characteristics at Los Bronces, partly offset by the first production of copper from Quellaveco in Peru.

-- Metal in concentrate production from our Platinum Group Metals (PGMs) operations decreased by 6%, due to the impact of Eskom load-shedding (power outages) primarily in September, infrastructure closures at Amandelbult and lower grade at Mogalakwena.

-- Iron ore production decreased by 5% primarily due to Kumba, which was impacted by the slow ramp-up after the safety intervention in the second quarter and Eskom load-shedding, primarily in September, while production at Minas-Rio was flat.

-- Nickel production decreased by 4%, primarily due to lower grades.

 
 
Production                        Q3 2022  Q3 2021  % vs. Q3 2021  YTD 2022  YTD 2021  % vs. YTD 2021 
================================  =======  =======  =============  ========  ========  ============== 
Diamonds (Mct) (2)                  9.6      9.2         4%          26.5      24.6          8% 
Copper (kt) (3)                     147      157        (6)%         420       487         (14)% 
Nickel (kt) (4)                    10.0     10.4        (4)%         29.6      31.1         (5)% 
Platinum group metals (koz) (5)    1,046    1,116       (6)%        3,034     3,195         (5)% 
Iron ore (Mt) (6)                  16.1     16.9        (5)%         43.6      48.8        (11)% 
Steelmaking coal (Mt)               5.5      4.3         28%         10.4      10.5         (2)% 
Manganese ore (kt)                  973     1,004       (3)%        2,756     2,849         (3)% 
================================  =======  =======  =============  ========  ========  ============== 
 

(1) Copper equivalent production basis. Copper equivalent production decreased by 1% compared to Q3 2021.

(2) De Beers Group production is on a 100% basis, except for the Gahcho Kué joint venture which is on an attributable 51% basis.

(3) Contained metal basis. Reflects copper production from the Copper operations in Chile and Peru only (excludes copper production from the Platinum Group Metals business unit).

(4) Reflects nickel production from the Nickel operations in Brazil only (excludes nickel production from the Platinum Group Metals business unit).

(5) Produced ounces of metal in concentrate. 5E+Au (platinum, palladium, rhodium, ruthenium and iridium plus gold). Reflects own mine production and purchase of concentrate.

(6) Wet basis.

Production and unit cost guidance summary

 
 
                           2022 production guidance (1)  2022 unit cost guidance (1) 
=========================  ============================  =========================== 
 
Diamonds (2)                        32-34 Mct                     c.$65/ct 
=========================  ============================  =========================== 
 
Copper (3)                          640-680 kt                    c.159c/lb 
=========================  ============================  =========================== 
 
Nickel (4)                           40-42 kt                     c.495c/lb 
=========================  ============================  =========================== 
 
Platinum Group Metals (5)          3.9-4.3 Moz                    c.$950/oz 
=========================  ============================  =========================== 
 
Iron Ore (6)                         60-64 Mt                      c.$40/t 
=========================  ============================  =========================== 
 
Steelmaking Coal (7)                 15-17 Mt                     c.$110/t 
=========================  ============================  =========================== 
 

(1) Subject to the extent of further Covid-19 related disruption. Unit costs exclude royalties, depreciation and include direct support costs only. (FX rates for H2 2022 costs: 17 ZAR:USD, 1.5 AUD:USD, 5.5 BRL:USD, 950 CLP:USD, 4 PEN:USD).

(2) Production on a 100% basis, except for the Gahcho Kué joint venture, which is on an attributable 51% basis, subject to trading conditions. Venetia continues to transition to underground operations during 2022, with ramp-up expected from 2023. Unit cost is based on De Beers' share of production.

(3) Copper business unit only. On a contained-metal basis. Total copper production is the sum of Chile and Peru: Chile: 560-580 kt and Peru: 80-100 kt. Peru subject to progress on ramp-up of operations. Unit cost total is a weighted average based on the mid-point of production guidance. Chile: c.160c/lb. Peru: c.150c/lb, based on progressing the ramp-up of production volumes.

(4) Nickel operations in Brazil only. The Group also produces approximately 20 kt of nickel on an annual basis as a co-product from the PGM operations. Production is subject to weather related disruptions.

(5) 5E + gold produced metal in concentrate ounces. Includes own mined production (65%) and purchased concentrate volumes (35%). The split of metals differs for own mined and purchased concentrate, refer to FY2021 results presentation slide 38 for indicative split of own mined volumes. 2022 metal in concentrate production is expected to be 1.8-2.0 Moz of platinum, 1.2-1.3 Moz of palladium and 0.9-1.0 Moz of other PGMs and gold. 5E + gold refined production is expected to be 3.7-3.9 Moz, subject to the impact of Eskom load-shedding. Unit cost is per own mined 5E + gold PGMs metal in concentrate ounce.

(6) Wet basis. Total iron ore is the sum of operations at Minas-Rio in Brazil and Kumba in South Africa. Minas-Rio: 22-24 Mt and Kumba: 38-40 Mt. Minas-Rio is subject to weather related disruptions. Kumba is subject to the third party rail and port performance, weather related disruptions as well as the impact of Eskom load-shedding. Unit cost total is a weighted average based on the mid-point of production guidance. Minas-Rio: c.$32/t and Kumba: c.$44/t.

(7) Production excludes thermal coal by-product from Australia and is subject to the extent of further unseasonal wet weather and continued tight labour markets. FOB unit cost comprises managed operations and excludes royalties and study costs.

Realised prices

 
 
                                     Q3 YTD 2022  Q3 YTD 2021  Q3 YTD 2022 vs Q3 YTD 
                                                                        2021 
===================================  ===========  ===========  ===================== 
Copper (USc/lb) (1)                          377          434                  (13)% 
Copper Chile (USc/lb) (2)                    377          434                  (13)% 
Copper Peru (USc/lb)                         341            -                    n/a 
Nickel (US$/lb)                            10.68         7.48                    43% 
Platinum Group Metals 
Platinum (US$/oz) (3)                        937        1,118                  (16)% 
Palladium (US$/oz) (3)                     2,107        2,582                  (18)% 
Rhodium (US$/oz) (3)                      16,139       22,009                  (27)% 
Basket price (US$/PGM oz) (4)              2,627        2,868                   (8)% 
Iron Ore - FOB prices (5)                    115          176                  (35)% 
Kumba Export (US$/wmt) (6)                   115          181                  (36)% 
Minas-Rio (US$/wmt) (7)                      114          167                  (32)% 
Steelmaking Coal - HCC (US$/t) (8)           324          149                   117% 
Steelmaking Coal - PCI (US$/t) (8)           279          138                   102% 
===================================  ===========  ===========  ===================== 
 

(1) Average realised total copper price is a weighted average of the Copper Chile and Copper Peru realised prices.

(2) The realised price for Copper excludes third party sales volumes.

(3) The realised price excludes trading.

(4) Price for a basket of goods per PGM oz. The dollar basket price is the net sales revenue from all metals (PGMs, base metals and other metals), excluding trading, per 5E + gold sold ounces (own mined and purchased concentrate).

(5) Average realised total iron ore price is a weighted average of the Kumba and Minas-Rio realised prices.

(6) Average realised export basket price (FOB Saldanha) (wet basis as product is shipped with 1.6% moisture). The realised prices differ to Kumba's standalone results due to sales to other Group companies. Average realised export basket price (FOB Saldanha) on a dry basis is $117/t (Q3 YTD 2021: $184/t) and this was higher than the dry 62% Fe benchmark price of $108/t (FOB South Africa, adjusted for freight).

(7) Average realised export basket price (FOB Açu) (wet basis as product is shipped with 9% moisture).

(8) Weighted average coal sales price achieved at managed operations. Australian thermal coal by-product is US$309/t and Q3 YTD 2021 was US$105/t, resulting in a 194% increase.

De Beers

 
 
De Beers (1) (000 carats)                 Q3 2022 vs.         Q3 2022 vs.                  YTD 2022 
                                            Q3 2021             Q2 2022                       vs. 
                             Q3     Q3                  Q2                  YTD     YTD     YTD 2021 
==========================                ===========         ===========                  ========= 
                            2022   2021                2022                 2022    2021 
==========================  =====  =====  ===========  =====  ===========  ======  ======  ========= 
Botswana                    6,647  6,403           4%  5,521          20%  18,352  17,090         7% 
Namibia                       531    399          33%    565         (6)%   1,547   1,075        44% 
South Africa                1,651  1,577           5%  1,220          35%   4,567   4,014        14% 
Canada                        741    797         (7)%    643          15%   1,988   2,406      (17)% 
Total carats recovered      9,570  9,176           4%  7,949          20%  26,454  24,585         8% 
==========================  =====  =====  ===========  =====  ===========  ======  ======  ========= 
 

Rough diamond production increased by 4% to 9.6 million carats, primarily due to the treatment of higher grade ore at both Orapa (Botswana) and in South Africa, and continued strong performance in Namibia.

In Botswana, production increased by 4% to 6.6 million carats, primarily driven by treatment of higher grade ore at Orapa, partly offset by processing lower grade ore at Jwaneng.

Namibia production increased by 33% to 0.5 million carats, primarily driven by continued strong performance from the Benguela Gem vessel.

South Africa production increased by 5% to 1.7 million carats, driven by the treatment of higher grade ore and the benefit of plant upgrades.

Production in Canada decreased by 7% to 0.7 million carats, due to the treatment of lower grade ore and the impact of tight labour markets.

Demand for rough diamonds remained steady, with rough diamond sales totalling 9.1 million carats (8.5 million carats on a consolidated basis) (2) from three Sights, compared with 7.8 million carats (7.0 million carats on a consolidated basis) (2) from two Sights in Q3 2021 and 9.4 million carats (8.3 million carats on a consolidated basis) (2) from three Sights in Q2 2022. While consumer demand for natural diamonds continues to be robust, a deterioration of global economic conditions, reduced consumer spending and continued Chinese Covid-19 lockdowns have the potential to impact demand for diamond jewellery.

2022 Guidance

Production guidance (1) for 2022 is unchanged at 32-34 million carats (100% basis), subject to trading conditions and the extent of further Covid-19 related disruptions.

In line with normal seasonal trends, we anticipate that sales in the final quarter of the year will be affected by the normal temporary closure of cutting and polishing factories for the religious holidays in India.

Unit cost guidance for 2022 is unchanged at c.$65/ct.

(1) De Beers Group production is on a 100% basis, except for the Gahcho Kué joint venture which is on an attributable 51% basis.

(2) Consolidated sales volumes exclude De Beers Group's JV partners' 50% proportionate share of sales to entities outside De Beers Group from the Diamond Trading Company Botswana and the Namibia Diamond Trading Company, which are included in total sales volume (100% basis).

 
 
De Beers (1)                       Q3      Q2       Q1      Q4     Q3    Q3 2022   Q3 2022    YTD     YTD    YTD 2022 
                                                                            vs.       vs.                       vs. 
                                                                          Q3 2021   Q2 2022                   YTD 2021 
================================                                         ========  ========                  ========= 
                                  2022    2022     2022    2021   2021                        2022    2021 
================================  =====  =======  =======  =====  =====  ========  ========  ======  ======  ========= 
Carats recovered (000 carats) 
100% basis (unless stated) 
Jwaneng                           3,567    3,120    3,632  2,679  3,954     (10)%       14%  10,319  10,214         1% 
Orapa (2)                         3,080    2,401    2,552  2,557  2,449       26%       28%   8,033   6,876        17% 
Total Botswana                    6,647    5,521    6,184  5,236  6,403        4%       20%  18,352  17,090         7% 
 
Debmarine Namibia                   423      488      375    330    309       37%     (13)%   1,286     807        59% 
Namdeb (land operations)            108       77       76     62     90       20%       40%     261     268       (3)% 
Total Namibia                       531      565      451    392    399       33%      (6)%   1,547   1,075        44% 
 
Venetia                           1,651    1,220    1,696  1,292  1,577        5%       35%   4,567   4,014        14% 
Total South Africa                1,651    1,220    1,696  1,292  1,577        5%       35%   4,567   4,014        14% 
 
Gahcho Kué (51% basis)         741      643      604    771    797      (7)%       15%   1,988   2,406      (17)% 
Total Canada                        741      643      604    771    797      (7)%       15%   1,988   2,406      (17)% 
================================  =====  =======  =======  =====  =====  ========  ========  ======  ======  ========= 
Total carats recovered            9,570    7,949    8,935  7,691  9,176        4%       20%  26,454  24,585         8% 
================================  =====  =======  =======  =====  =====  ========  ========  ======  ======  ========= 
Sales volumes 
Total sales volume (100)% (Mct) 
 (3)                                9.1  9.4 (4)  7.9 (4)    7.7    7.8       17%      (3)%    26.4    28.6       (8)% 
Consolidated sales volume (Mct) 
 (3)                                8.5  8.3 (4)  7.0 (4)    7.2    7.0       21%        2%    23.8    26.2       (9)% 
Number of Sights (sales cycles)       3    3 (4)    2 (4)      3      2                           8       7 
================================  =====  =======  =======  =====  =====  ========  ========  ======  ======  ========= 
 

(1) De Beers Group production is on a 100% basis, except for the Gahcho Kué joint venture which is on an attributable 51% basis.

(2) Orapa constitutes the Orapa Regime which includes Orapa, Letlhakane and Damtshaa.

(3) Consolidated sales volumes exclude De Beers Group's JV partners' 50% proportionate share of sales to entities outside De Beers Group from the Diamond Trading Company Botswana and the Namibia Diamond Trading Company, which are included in total sales volume (100% basis).

(4) Due to the completion of Sight 3 in April 2022, the sales were recognised in Q2 2022.

Copper

 
 
Copper (1) (tonnes)    Q3    Q3   Q3 2022 vs.   Q2   Q3 2022 vs.  YTD   YTD   YTD 2022 
                                    Q3 2021            Q2 2022                   vs. 
                                                                               YTD 2021 
====================              ===========        ===========              ========= 
                      2022  2021               2022               2022  2021 
====================  ====  ====  ===========  ====  ===========  ====  ====  ========= 
Copper                 147   157         (6)%   134          10%   420   487      (14)% 
Copper Chile           127   157        (19)%   134         (6)%   400   487      (18)% 
Copper Peru             20     -          n/a   n/a          n/a    20   n/a        n/a 
====================  ====  ====  ===========  ====  ===========  ====  ====  ========= 
 

(1) Copper production shown on a contained metal basis. Reflects copper production from the Copper operations in Chile and Peru only (excludes copper production from the Platinum Group Metals business unit).

Copper production decreased by 6% to 147,000 tonnes, primarily due to a decrease of 19% in Chile, partly offset by the first production of copper in concentrate from Quellaveco in Peru.

Chile - Copper production decreased by 19% to 126,500 tonnes due to planned lower grades at all operations, and unfavourable ore characteristics and unplanned stoppages at Los Bronces .

Production from Los Bronces decreased by 29% to 56,900 tonnes, primarily due to lower ore processed as a result of the impact of increased ore hardness and unplanned stoppages, as well as planned lower grades (0.58% vs 0.70%).

At Collahuasi, attributable production decreased by 8% to 60,400 tonnes driven by planned lower grades (1.08% vs 1.28%).

Production from El Soldado decreased by 21% to 9,200 tonnes due to planned lower grades (0.59% vs 0.73%).

Chile's central zone continues to face severe drought conditions, with the last two years up to June 2022 being the driest years since records began. While the rain and snowfall deficit decreased during the third quarter, the outlook remains very dry and these conditions place pressure on water availability in 2023. In the short term, various management initiatives to improve water efficiency and secure alternative sources of water continue to partly mitigate the impact on production.

The average realised price of 377 c/lb, includes 135,000 tonnes of copper provisionally priced on 30 September at an average of 346 c/lb.

Peru - First production of copper in concentrate from the Quellaveco mine was on 12 July 2022, with 20,300 tonnes successfully produced by the end of the third quarter. On 26 September 2022, we announced the start of commercial operations following receipt of final regulatory clearance, with sales commencing in the subsequent days. Quellaveco is expected to ramp-up fully over the next 9-12 months.

5,100 tonnes of copper from Quellaveco were provisionally priced on 30 September at an average realised price of 341 c/lb.

2022 Guidance

Production guidance for 2022 is unchanged a t 640,000-680,000 tonnes (Chile 560,000 -580,000 ton nes; Peru 80,000-100,000 tonnes). Production is subject to the extent of further Covid-19 related disruptions and, in Peru, progress on ramp-up of operations.

Unit cost guidance for 2022 is unchanged at c.159c/lb (Chile c.160c/lb; Peru c.150c/lb).

 
 
Copper (1)            Q3          Q2          Q1          Q4          Q3       Q3     Q3       YTD         YTD       YTD 
                                                                              2022   2022                           2022 
                                                                              vs.    vs.                            vs. 
                                                                               Q3     Q2                             YTD 
                                                                              2021   2022                           2021 
================                                                              =====  =====                          ===== 
                     2022        2022        2022        2021        2021                      2022        2021 
================  ==========  ==========  ==========  ==========  ==========  =====  =====  ==========  ==========  ===== 
Total copper 
 production          146,800     133,900     139,500     160,700     156,500   (6)%    10%     420,200     486,500  (14)% 
Total copper 
 sales volumes       132,900     132,800     132,100     173,400     162,300  (18)%     0%     397,800     467,700  (15)% 
================  ==========  ==========  ==========  ==========  ==========  =====  =====  ==========  ==========  ===== 
 
Copper Chile 
================  ==========  ==========  ==========  ==========  ==========  =====  =====  ==========  ==========  ===== 
Los Bronces mine 
(2) 
Ore mined         11,389,900  13,256,600   8,976,100  11,056,800  10,512,600     8%  (14)%  33,622,600  32,728,100     3% 
Ore processed - 
 Sulphide          9,848,900  11,992,800  11,142,600  13,293,500  12,715,400  (23)%  (18)%  32,984,300  37,404,000  (12)% 
Ore grade 
 processed - 
 Sulphide (% 
 TCu) (3)               0.58        0.57        0.62        0.70        0.70  (18)%     1%        0.59        0.70  (16)% 
Production - 
 Copper cathode       10,500       8,600      10,100      10,400       9,800     7%    22%      29,200      29,500   (1)% 
Production - 
 Copper in 
 concentrate          46,400      55,700      55,300      74,500      69,800  (34)%  (17)%     157,400     213,300  (26)% 
Total production      56,900      64,300      65,400      84,900      79,600  (29)%  (12)%     186,600     242,800  (23)% 
================  ==========  ==========  ==========  ==========  ==========  =====  =====  ==========  ==========  ===== 
Collahuasi 100% 
basis 
(Anglo American 
share 44%) 
Ore mined         20,217,100  22,025,700  22,004,800  23,940,600  30,327,200  (33)%   (8)%  64,247,600  78,490,500  (18)% 
Ore processed - 
 Sulphide         14,339,600  14,337,800  13,841,700  13,979,000  12,926,400    11%     0%  42,519,100  41,702,300     2% 
Ore grade 
 processed - 
 Sulphide (% 
 TCu) (3)               1.08        1.10        1.18        1.18        1.28  (16)%   (3)%        1.12        1.27  (12)% 
Production - 
 Copper in 
 concentrate         137,400     141,000     149,400     150,100     148,300   (7)%   (3)%     427,800     479,900  (11)% 
Anglo American's 
 44% share of 
 copper 
 production for 
 Collahuasi           60,400      62,100      65,700      66,000      65,300   (8)%   (3)%     188,200     211,200  (11)% 
================  ==========  ==========  ==========  ==========  ==========  =====  =====  ==========  ==========  ===== 
El Soldado mine 
(2) 
Ore mined          1,942,400     948,700     611,100     975,500   1,697,800    14%   105%   3,502,200   5,203,000  (33)% 
Ore processed - 
 Sulphide          1,926,500   1,914,100   1,809,700   1,909,400   1,952,000   (1)%     1%   5,650,300   5,541,900     2% 
Ore grade 
 processed - 
 Sulphide (% 
 TCu) (3)               0.59        0.50        0.57        0.63        0.73  (20)%    17%        0.55        0.73  (24)% 
Production - 
 Copper in 
 concentrate           9,200       7,500       8,400       9,800      11,600  (21)%    23%      25,100      32,500  (23)% 
================  ==========  ==========  ==========  ==========  ==========  =====  =====  ==========  ==========  ===== 
Chagres Smelter 
(2) 
Ore smelted (4)       25,700      20,600      30,900      29,200      30,200  (15)%    25%      77,200      78,800   (2)% 
Production            25,000      24,900      25,100      28,400      29,200  (14)%     0%      75,000      76,400   (2)% 
================  ==========  ==========  ==========  ==========  ==========  =====  =====  ==========  ==========  ===== 
Total copper 
 production (5)      126,500     133,900     139,500     160,700     156,500  (19)%   (6)%     399,900     486,500  (18)% 
Total payable 
 copper 
 production          121,600     128,500     134,100     154,100     150,100  (19)%   (5)%     384,200     467,000  (18)% 
================  ==========  ==========  ==========  ==========  ==========  =====  =====  ==========  ==========  ===== 
Total copper 
 sales volumes       127,600     132,800     132,100     173,400     162,300  (21)%   (4)%     392,500     467,700  (16)% 
Total payable 
 sales volumes       122,200     127,500     126,900     166,200     153,900  (21)%   (4)%     376,600     446,300  (16)% 
Third party 
 sales (6)           126,600     150,900      65,300     138,500     136,200   (7)%  (16)%     342,800     293,000    17% 
================  ==========  ==========  ==========  ==========  ==========  =====  =====  ==========  ==========  ===== 
 
Copper Peru 
================  ==========  ==========  ==========  ==========  ==========  =====  =====  ==========  ==========  ===== 
Quellaveco mine 
(7) 
Ore mined          8,487,000   4,645,400   3,235,300   1,127,100           -    n/a    83%  16,367,700           -    n/a 
Ore processed - 
 Sulphide          2,867,600           -           -           -           -    n/a    n/a   2,867,600           -    n/a 
Ore grade 
 processed - 
 Sulphide (% 
 TCu) (3)               0.96           -           -           -           -    n/a    n/a        0.96           -    n/a 
Production - 
 Copper in 
 concentrate          20,300           -           -           -           -    n/a    n/a      20,300           -    n/a 
================  ==========  ==========  ==========  ==========  ==========  =====  =====  ==========  ==========  ===== 
Total copper 
 production           20,300           -           -           -           -    n/a    n/a      20,300           -    n/a 
Total payable 
 copper 
 production           19,600           -           -           -           -    n/a    n/a      19,600           -    n/a 
================  ==========  ==========  ==========  ==========  ==========  =====  =====  ==========  ==========  ===== 
Total copper 
 sales volumes         5,300           -           -           -           -    n/a    n/a       5,300           -    n/a 
Total payable 
 sales volumes         5,100           -           -           -           -    n/a    n/a       5,100           -    n/a 
================  ==========  ==========  ==========  ==========  ==========  =====  =====  ==========  ==========  ===== 
 

(1) Excludes copper production from the Platinum Group Metals business unit. Units shown are tonnes unless stated otherwise.

(2) Anglo American ownership interest of Los Bronces, El Soldado and the Chagres Smelter is 50.1%. Production is stated at 100% as Anglo American consolidates these operations.

(3) TCu = total copper.

(4) Copper contained basis.

(5) Total copper production includes Anglo American's 44% interest in Collahuasi.

(6) Relates to sales of copper not produced by Anglo American operations .

(7) Anglo American ownership interest of Quellaveco is 60%. Production is stated at 100% as Anglo American consolidates this operation.

Nickel

 
 
Nickel (tonnes)     Q3      Q3    Q3 2022 vs.    Q2    Q3 2022 vs.   YTD     YTD    YTD 2022 
                                    Q3 2021              Q2 2022                       vs. 
                                                                                     YTD 2021 
================                  ===========          ===========                  ========= 
                   2022    2021                 2022                 2022    2021 
================  ======  ======  ===========  ======  ===========  ======  ======  ========= 
Nickel            10,000  10,400         (4)%  10,300         (3)%  29,600  31,100       (5)% 
================  ======  ======  ===========  ======  ===========  ======  ======  ========= 
 

Nickel production decreased by 4% to 10,000 tonnes, primarily due to planned lower ore grades, partly offset by the deferral of planned annual maintenance to the fourth quarter of 2022.

The year to date average realised price for nickel of $10.68/lb was 9% lower than the market price, primarily reflecting the ferronickel discount to LME grade nickel.

2022 Guidance

Production for 2022 is expected to be towards the lower end of the guidance range of 40,000-42,000 tonnes, subject to the extent of further Covid-19 related disruptions and weather related impacts.

Unit cost guidance for 2022 is unchanged at c.495c/lb.

 
 
Nickel (tonnes)      Q3        Q2       Q1       Q4        Q3                             YTD        YTD 
================                                                   ========  ========                        ========= 
                                                                   Q3 2022   Q3 2022                         YTD 2022 
                                                                      vs.       vs.                             vs. 
                    2022      2022     2022     2021      2021      Q3 2021   Q2 2022    2022       2021      YTD 2021 
================  =========  =======  =======  =======  =========  ========  ========  =========  =========  ========= 
Barro Alto 
Ore mined         1,349,100  758,300  343,700  719,300  1,190,900       13%       78%  2,451,100  2,795,600      (12)% 
Ore processed       589,000  618,100  643,900  654,400    564,400        4%      (5)%  1,851,000  1,822,600         2% 
Ore grade 
 processed - %Ni       1.52     1.52     1.42     1.50       1.64      (7)%        0%       1.49       1.57       (5)% 
Production            8,200    8,600    7,900    8,600      8,300      (1)%      (5)%     24,700     25,300       (2)% 
================  =========  =======  =======  =======  =========  ========  ========  =========  =========  ========= 
Codemin 
Ore processed       133,500  134,000  115,100  141,700    146,800      (9)%        0%    382,600    419,800       (9)% 
Ore grade 
 processed - %Ni       1.46     1.42     1.41     1.57       1.60      (9)%        3%       1.43       1.55       (8)% 
Production            1,800    1,700    1,400    2,000      2,100     (14)%        6%      4,900      5,800      (16)% 
================  =========  =======  =======  =======  =========  ========  ========  =========  =========  ========= 
Total Nickel 
 production (1)      10,000   10,300    9,300   10,600     10,400      (4)%      (3)%     29,600     31,100       (5)% 
================  =========  =======  =======  =======  =========  ========  ========  =========  =========  ========= 
Sales volumes        10,400    7,800    9,000   10,400     11,700     (11)%       33%     27,200     31,700      (14)% 
================  =========  =======  =======  =======  =========  ========  ========  =========  =========  ========= 
 

(1) Excludes nickel production from the Platinum Group Metals business unit.

Platinum Group Metals (PGMs)

 
 
PGMs (000 oz) (1)                    Q3     Q3    Q3 2022 vs.   Q2    Q3 2022 vs.   YTD    YTD   YTD 2022 
                                                    Q3 2021             Q2 2022                     vs. 
                                                                                                  YTD 2021 
==================================                ===========         ===========                ========= 
                                    2022   2021                2022                2022   2021 
==================================  =====  =====  ===========  =====  ===========  =====  =====  ========= 
Metal in concentrate production     1,046  1,116         (6)%  1,032           1%  3,034  3,195       (5)% 
Own mined (2)                         683    720         (5)%    686           0%  1,993  2,124       (6)% 
Purchase of concentrate (POC) (3)     363    396         (8)%    345           5%  1,041  1,071       (3)% 
==================================  =====  =====  ===========  =====  ===========  =====  =====  ========= 
Refined production (4)                995  1,420        (30)%  1,241        (20)%  2,954  3,747      (21)% 
==================================  =====  =====  ===========  =====  ===========  =====  =====  ========= 
 

(1) Ounces refer to troy ounces. PGMs consists of 5E+Au (platinum, palladium, rhodium, ruthenium and iridium plus gold).

(2) Includes managed operations and 50% of joint operation production.

(3) Includes the other 50% of joint operation production, as well as the purchase of concentrate from third parties.

(4) Refined production excludes toll refined material.

Metal in concentrate production

Own mined production decreased by 5% to 683,200 ounces, due to Eskom load-shedding (power outages) primarily in September, infrastructure closures at Amandelbult during Q4 2021 and lower grade at Mogalakwena, partially offset by strong performances at Unki and Mototolo.

Production at Amandelbult decreased by 12% to 192,600, primarily due to infrastructure closures during Q4 2021 as well as the impact of Eskom load-shedding. Mogalakwena production decreased by 6% to 259,300 ounces as a result of mining in a lower grade area. Joint operations decreased by 16% to 96,000 ounces due to areas of Kroondal coming to the end of life and the impact of Eskom load-shedding, as well as planned lower grade at Modikwa. These were partially offset by a 41% increase in production at Unki to 59,900 ounces, following the debottlenecking project at the concentrator, completed in Q4 2021. Production at Mototolo increased by 9%, reflecting the benefit of higher grade.

Purchase of concentrate was 8% lower at 362,900 ounces, due to the lower production from joint operations as well as lower third party receipts.

Refined production

Refined production decreased by 30% to 994,800 ounces, as the Polokwane smelter was decommissioned for its first full structural rebuild in twelve years. The rebuild is expected to be completed towards the end of Q4 2022. Eskom load-shedding also impacted the smelters, leading to an inventory build-up of 40,400 ounces.

Sales

Sales volumes decreased by 31%, in line with refined production.

The year to date average realised basket price of $2,627/PGM ounce reflects lower market prices, partially offset by a more normal sales mix compared with the same period in 2021, which had elevated sales volumes of lower priced ruthenium.

2022 Guidance

Production guidance (metal in concentrate) for 2022 is unchanged at 3.9-4.3 million ounces (1) . Refined production guidance for 2022 is unchanged at 3.7-3.9 million ounces, subject to the impact of Eskom load-shedding. Both are subject to the extent of further Covid-19 related disruption.

Unit cost guidance for 2022 is unchanged at c.$950/PGM ounce.

(1) Metal in concentrate production is expected to be 1.8-2.0 million ounces of platinum, 1.2-1.3 million ounces of palladium and 0.9-1.0 million ounces of other PGMs and gold. With own-mined output accounting for 65%.

 
 
                              Q3       Q2      Q1      Q4       Q3     Q3 2022   Q3 2022     YTD      YTD    YTD 2022 
                                                                          vs.       vs.                         vs. 
                                                                        Q3 2021   Q2 2022                     YTD 2021 
                                                                       ========  ========                    ========= 
                             2022     2022    2022    2021     2021                         2022     2021 
==========================  =======  =======  =====  =======  =======  ========  ========  =======  =======  ========= 
M&C PGMs production (000 
 oz) (1)                    1,046.1  1,031.5  956.0  1,103.4  1,116.2      (6)%        1%  3,033.6  3,195.3       (5)% 
Own mined                     683.2    686.3  623.1    734.2    720.0      (5)%        0%  1,992.6  2,124.1       (6)% 
Mogalakwena                   259.3    261.4  248.8    300.8    276.4      (6)%      (1)%    769.5    913.8      (16)% 
Amandelbult                   192.6    183.4  159.9    213.6    218.3     (12)%        5%    535.9    559.6       (4)% 
Unki                           59.9     66.3   53.3     63.2     42.6       41%     (10)%    179.5    141.4        27% 
Mototolo                       75.4     75.6   67.2     56.9     69.0        9%        0%    218.2    187.5        16% 
Joint operations (2)           96.0     99.6   93.9     99.7    113.7     (16)%      (4)%    289.5    321.8      (10)% 
Purchase of concentrate       362.9    345.2  332.9    369.2    396.2      (8)%        5%  1,041.0  1,071.2       (3)% 
Joint operations (2)           96.0     99.6   93.9     99.7    113.7     (16)%      (4)%    289.5    321.8      (10)% 
Third parties                 266.9    245.6  239.0    269.5    282.5      (6)%        9%    751.5    749.4         0% 
==========================  =======  =======  =====  =======  =======  ========  ========  =======  =======  ========= 
Refined PGMs production 
 (000 oz) (1)(3)              994.8  1,240.6  718.5  1,391.3  1,420.4     (30)%     (20)%  2,953.9  3,747.1      (21)% 
==========================  =======  =======  =====  =======  =======  ========  ========  =======  =======  ========= 
By metal: 
Platinum                      457.2    600.4  334.1    653.5    662.9     (31)%     (24)%  1,391.7  1,746.4      (20)% 
Palladium                     317.1    374.8  228.1    423.2    459.8     (31)%     (15)%    920.0  1,204.3      (24)% 
Rhodium                        64.8     86.4   46.3     97.7     92.2     (30)%     (25)%    197.5    249.5      (21)% 
Other PGMs and gold           155.7    179.0  110.0    216.9    205.5     (24)%     (13)%    444.7    546.9      (19)% 
Nickel (tonnes)               5,700    6,200  4,600    5,700    6,000      (5)%      (8)%   16,500   16,600       (1)% 
==========================  =======  =======  =====  =======  =======  ========  ========  =======  =======  ========= 
Tolled material (000 oz) 
 (4)                          151.3    143.4  154.8    179.5    164.5      (8)%        6%    449.5    494.2       (9)% 
==========================  =======  =======  =====  =======  =======  ========  ========  =======  =======  ========= 
PGMs sales from production 
 (000 oz) (1)(5)              933.5  1,206.2  838.2  1,285.2  1,361.0     (31)%     (23)%  2,977.9  3,929.2      (24)% 
==========================  =======  =======  =====  =======  =======  ========  ========  =======  =======  ========= 
Third party PGMs sales 
 (000 oz) (1)(6)              403.4    256.0  400.9    272.9    160.1      152%       58%  1,060.3    497.7       113% 
==========================  =======  =======  =====  =======  =======  ========  ========  =======  =======  ========= 
4E head grade (g/t milled) 
 (7)                           3.33     3.33   3.24     3.49     3.47      (4)%        0%     3.30     3.50       (6)% 
==========================  =======  =======  =====  =======  =======  ========  ========  =======  =======  ========= 
 

(1) M&C refers to metal in concentrate. Ounces refer to troy ounces. PGMs consists of 5E+Au (platinum, palladium, rhodium, ruthenium and iridium plus gold).

(2) The joint operations are Modikwa and Kroondal. Platinum owns 50% of these operations, which is presented under 'Own mined' production, and purchases the remaining 50% of production, which is presented under 'Purchase of concentrate'.

(3) Refined production excludes toll material.

(4) Ounces refer to troy ounces. Tolled volume measured as the combined content of: platinum, palladium, rhodium and gold, reflecting the tolling agreements in place.

(5) PGMs sales volumes from production are generally 65% own mined and 35% purchases of concentrate though this may vary from quarter to quarter.

(6) Relates to sales of metal not produced by Anglo American operations.

(7) 4E: the grade measured as the combined content of: platinum, palladium, rhodium and gold, excludes tolled material. Minor metals are excluded due to variability.

Iron Ore

 
 
Iron Ore (000 t)     Q3      Q3    Q3 2022 vs.    Q2    Q3 2022 vs.   YTD     YTD    YTD 2022 
                                     Q3 2021              Q2 2022                       vs. 
                                                                                      YTD 2021 
=================                  ===========          ===========                  ========= 
                    2022    2021                 2022                 2022    2021 
=================  ======  ======  ===========  ======  ===========  ======  ======  ========= 
Iron Ore (1)       16,060  16,888         (5)%  14,374          12%  43,599  48,757      (11)% 
Kumba (2)           9,977  10,789         (8)%   9,469           5%  27,738  31,161      (11)% 
Minas-Rio (3)       6,083   6,100           0%   4,905          24%  15,861  17,596      (10)% 
=================  ======  ======  ===========  ======  ===========  ======  ======  ========= 
 

(1) Total iron ore is the sum of Kumba and Minas-Rio.

(2) Volumes are reported as wet metric tonnes. Product is shipped with 1.6% moisture.

(3) Volumes are reported as wet metric tonnes. Product is shipped with 9% moisture.

Iron ore production decreased by 5% to 16.1 million tonnes, due to an 8% decrease at Kumba, while production at Minas-Rio was flat.

Kumba - Total production decreased by 8% to 10.0 million tonnes, primarily driven by a decrease at Sishen of 6% to 7.1 million tonnes due to Eskom load-shedding (power outages), which had a 0.3 million tonne impact, and plant reliability. Kolomela's production decreased by 11% to 2.9 million tonnes, due to the slow ramp-up following the safety intervention in the second quarter.

Total sales were flat at 10.0 million tonnes (1) , due to poor rail performance, offset by a drawdown of finished stock at the Saldanha port. This has resulted in low finished stock levels at the port.

Kumba's iron (Fe) content averaged 63.9% (YTD 2021: 64.1%), while the average lump:fines ratio was 66:34 (YTD 2021: 69:31).

The year to date average realised price of $115/tonne (1) (FOB South Africa, wet basis), was 8% higher than the 62% Fe benchmark price of $106/tonne (FOB South Africa, adjusted for freight and moisture), reflecting the lump and Fe content quality premiums that the Kumba products attract, partly offset by timing on provisionally priced sales volumes, as our products are generally priced in the month after arrival (M+2).

Minas-Rio - Production was flat at 6.1 million tonnes.

The year to date average realised price of $114/tonne (FOB Brazil, wet basis) was lower than the Metal Bulletin 66 price of $117/tonne ( FOB Brazil, adjusted for freight and moisture), primarily due to timing on provisionally priced sales volumes (our products are generally priced in the month after arrival (M+2)), which more than offset the premiums for our high quality product, including higher (67%) Fe content.

2022 Guidance

Production (wet basis) for 2022 is expected to be towards the lower end of the guidance range, which is unchanged at 60-64 million tonnes. Production for Kumba is expected to be towards the lower end of the 38-40 million tonnes guidance range. Production guidance for Minas-Rio is also expected to be towards the lower end of the 22-24 million tonnes guidance range. Both are subject to the extent of further Covid-19 related disruption and weather related impacts, and Kumba is subject to third party rail and port performance, as well as the impact of Eskom load-shedding.

Unit cost guidance (wet basis) for 2022 is unchanged at c.$40/tonne (Kumba c.$44/tonne; Minas-Rio c.$32/tonne).

(1) Sales volumes and realised price are reported on a wet basis and differ to Kumba's standalone results due to sales to other Group companies.

 
 
Iron Ore                                                                   Q3     Q3                             YTD 
(tonnes)                                                                  2022   2022                           2022 
                                                                          vs.    vs.                             vs. 
                                                                           Q3     Q2                             YTD 
                  Q3          Q2          Q1          Q4          Q3      2021   2022      YTD         YTD       2021 
============                                                              =====  =====                          ====== 
                 2022        2022        2022        2021        2021                      2022        2021 
============  ==========  ==========  ==========  ==========  ==========  =====  =====  ==========  ==========  ====== 
Iron Ore 
 production 
 (1)          16,060,000  14,373,900  13,164,900  15,050,800  16,888,100   (5)%    12%  43,598,800  48,756,800   (11)% 
Iron Ore 
 sales (1)    15,799,200  14,470,800  13,828,700  16,775,700  15,818,800     0%     9%  44,098,700  46,508,800    (5)% 
============  ==========  ==========  ==========  ==========  ==========  =====  =====  ==========  ==========  ====== 
 
Kumba 
 production    9,977,300   9,468,800   8,292,000   9,701,300  10,788,600   (8)%     5%  27,738,100  31,160,900   (11)% 
Lump           6,530,300   6,229,900   5,387,700   6,419,900   7,252,800  (10)%     5%  18,147,900  21,132,600   (14)% 
Fines          3,447,000   3,238,900   2,904,300   3,281,400   3,535,800   (3)%     6%   9,590,200  10,028,300    (4)% 
============  ==========  ==========  ==========  ==========  ==========  =====  =====  ==========  ==========  ====== 
Kumba 
production 
by mine 
Sishen         7,085,600   7,105,500   5,816,100   6,538,200   7,528,300   (6)%     0%  20,007,200  21,476,300    (7)% 
Kolomela       2,891,700   2,363,300   2,475,900   3,163,100   3,260,300  (11)%    22%   7,730,900   9,684,600   (20)% 
============  ==========  ==========  ==========  ==========  ==========  =====  =====  ==========  ==========  ====== 
Kumba sales 
 volumes (2)   9,982,000  10,302,700   9,332,000  10,690,300   9,965,700     0%   (3)%  29,616,700  29,601,900      0% 
Export iron 
 ore (2)       9,982,000  10,302,700   9,332,000  10,690,300   9,965,700     0%   (3)%  29,616,700  29,494,800      0% 
Domestic               -           -           -           -           -    n/a    n/a           -     107,100     n/a 
iron ore 
============  ==========  ==========  ==========  ==========  ==========  =====  =====  ==========  ==========  ====== 
 
Minas-Rio 
production 
Pellet feed 
 (wet basis)   6,082,700   4,905,100   4,872,900   5,349,500   6,099,500     0%    24%  15,860,700  17,595,900   (10)% 
============  ==========  ==========  ==========  ==========  ==========  =====  =====  ==========  ==========  ====== 
Minas-Rio 
sales 
volumes 
Export - 
 pellet feed 
 (wet basis)   5,817,200   4,168,100   4,496,700   6,085,400   5,853,100   (1)%    40%  14,482,000  16,906,900   (14)% 
============  ==========  ==========  ==========  ==========  ==========  =====  =====  ==========  ==========  ====== 
 

(1) Total iron ore is the sum of Kumba and Minas-Rio and reported in wet metric tonnes. Kumba product is shipped with 1.6% moisture and Minas-Rio product is shipped with 9% moisture.

(2) Sales volumes differ to Kumba's standalone results due to sales to other Group companies.

Steelmaking Coal

 
 
Steelmaking Coal (1) (000 t)    Q3     Q3    Q3 2022 vs.   Q2    Q3 2022 vs.   YTD     YTD    YTD 2022 
                                               Q3 2021             Q2 2022                       vs. 
                                                                                               YTD 2021 
                               2022   2021                2022                 2022    2021 
                               =====  =====               =====               ======  ====== 
Steelmaking Coal               5,510  4,289          28%  2,621         110%  10,357  10,536       (2)% 
=============================  =====  =====  ===========  =====  ===========  ======  ======  ========= 
 

(1) Anglo American's attributable share of production. Includes production relating to processing of third party product.

All three underground longwall operations (Moranbah, Grosvenor and Aquila) were operating in Q3 2022 with the focus on safety and increasing longwall performance through stability; however, Covid-19 related absenteeism, tight labour markets and unseasonal wet weather at the open pits, continue to impact production.

Steelmaking coal production increased by 28% to 5.5 million tonnes, primarily due to the ramp-up of the Grosvenor longwall operation following its restart in February 2022 and the new Aquila longwall operation which began operations in February 2022. Aquila's production was more than offset by the planned end of production at the Grasstree operation in January 2022.

The ratio of hard coking coal production to PCI/semi-soft coking coal was 83:17, in line with Q3 2021 (83:17).

The year to date average realised price for hard coking coal was $324/tonne, which was lower than the benchmark price of $393/tonne. The price realisation was broadly flat at 82% (YTD 2021: 84%) as the contribution of premium hard coking coal from the Grosvenor operation was offset by the end of production at Grasstree.

2022 Guidance

Production for 2022 is expected to be towards the lower end of the guidance range of 15-17 million tonnes, subject to the extent of further unseasonal wet weather, continued tight labour markets and Covid-19 related disruptions.

Unit cost guidance for 2022 is unchanged at c.$110/tonne.

 
 
Coal, by                                                             Q3 2022  Q3 2022                            YTD 
product                                                                                                         2022 
(tonnes) (1)                                                          vs.      vs.                              vs. 
                                                                     Q3 2021  Q2 2022                            YTD 
                 Q3         Q2         Q1         Q4         Q3                           YTD         YTD       2021 
============                                                         =======  =======                          ======= 
                2022       2022       2022       2021       2021                          2022        2021 
============  =========  =========  =========  =========  =========  =======  =======  ==========  ==========  ======= 
Production 
volumes 
Steelmaking 
 Coal (2)     5,510,200  2,620,600  2,226,400  4,372,100  4,288,500      28%     110%  10,357,200  10,535,600     (2)% 
Hard coking 
 coal (2)     4,562,200  2,125,600  1,753,000  2,922,400  3,567,400      28%     115%   8,440,800   8,398,100       1% 
PCI / SSCC      948,000    495,000    473,400  1,449,700    721,100      31%      92%   1,916,400   2,137,500    (10)% 
Export 
 thermal 
 coal           424,000    365,900    427,400    341,800    443,800     (4)%      16%   1,217,300   1,335,200     (9)% 
============  =========  =========  =========  =========  =========  =======  =======  ==========  ==========  ======= 
Sales 
volumes 
Steelmaking 
 Coal (2)     5,245,100  2,776,100  2,429,700  4,182,400  3,985,800      32%      89%  10,450,900   9,954,400       5% 
Hard coking 
 coal (2)     4,289,200  2,096,600  1,812,000  2,793,500  3,293,600      30%     105%   8,197,800   8,001,900       2% 
PCI / SSCC      955,900    679,500    617,700  1,388,900    692,200      38%      41%   2,253,100   1,952,500      15% 
Export 
 thermal 
 coal           479,900    390,000    337,900    483,800    560,400    (14)%      23%   1,207,800   1,624,400    (26)% 
============  =========  =========  =========  =========  =========  =======  =======  ==========  ==========  ======= 
(1) Anglo American's attributable share of production. 
 (2) Includes production relating to processing of third party product. 
 
Steelmaking                                                          Q3 2022  Q3 2022                            YTD 
coal, by                                                                                                        2022 
operation                                                             vs.      vs.                              vs. 
(tonnes) (1)                                                         Q3 2021  Q2 2022                            YTD 
                 Q3         Q2         Q1         Q4         Q3                           YTD         YTD       2021 
============                                                         =======  =======                          ======= 
                2022       2022       2022       2021       2021                          2022        2021 
============  =========  =========  =========  =========  =========  =======  =======  ==========  ==========  ======= 
Steelmaking 
 Coal (2)     5,510,200  2,620,600  2,226,400  4,372,100  4,288,500      28%     110%  10,357,200  10,535,600     (2)% 
Moranbah (2)  1,522,900    209,700    172,800  1,084,300  1,314,700      16%     626%   1,905,400   1,966,400     (3)% 
Grosvenor     1,277,400    856,300    125,200     52,100     19,500      n/a      49%   2,258,900      19,500      n/a 
Aquila 
 (incl. 
 Capcoal) 
 (2)(3)       1,149,400    527,100    746,400  1,588,700  1,503,500    (24)%     118%   2,422,900   4,404,200    (45)% 
Dawson          741,300    317,400    444,900    654,100    659,200      12%     134%   1,503,600   1,829,600    (18)% 
Jellinbah       819,200    710,100    737,100    802,200    791,600       3%      15%   2,266,400   2,315,900     (2)% 
Other                 -          -          -    190,700          -      n/a      n/a           -           -      n/a 
============  =========  =========  =========  =========  =========  =======  =======  ==========  ==========  ======= 
(1) Anglo American's attributable share of production. 
 (2) Includes production relating to processing of third party product. 
 (3) Including production from the Aquila longwall operation from February 2022. Prior to 
 then, including production from the Grasstree longwall operation. 
 

Manganese

 
 
Manganese (000 t)    Q3    Q3    Q3 2022 vs.   Q2   Q3 2022 vs.   YTD    YTD   YTD 2022 
                                   Q3 2021            Q2 2022                     vs. 
                                                                                YTD 2021 
                    2022  2021                2022               2022   2021 
                    ====  =====               ====               =====  ===== 
Manganese ore (1)    973  1,004         (3)%   980         (1)%  2,756  2,849       (3)% 
==================  ====  =====  ===========  ====  ===========  =====  =====  ========= 
 

(1) Saleable production.

Manganese ore production decreased by 3% to 973,300 tonnes, driven by Covid-19 related absenteeism and some equipment reliability issues at the South African operations.

 
 
Manganese (tonnes)    Q3       Q2       Q1       Q4        Q3                             YTD        YTD 
==================                                                 ========  ========                        ========= 
                                                                   Q3 2022   Q3 2022                         YTD 2022 
                                                                      vs.       vs.                             vs. 
                     2022     2022     2022     2021      2021      Q3 2021   Q2 2022    2022       2021      YTD 2021 
==================  =======  =======  =======  =======  =========  ========  ========  =========  =========  ========= 
Samancor 
production 
Manganese ore (1)   973,300  979,600  803,500  834,600  1,003,600      (3)%      (1)%  2,756,400  2,848,600       (3)% 
==================  =======  =======  =======  =======  =========  ========  ========  =========  =========  ========= 
Samancor sales 
volumes 
Manganese ore       834,400  960,200  846,900  940,200    947,200     (12)%     (13)%  2,641,500  2,805,600       (6)% 
==================  =======  =======  =======  =======  =========  ========  ========  =========  =========  ========= 
 

(1) Saleable production.

Exploration and evaluation

Exploration and evaluation expenditure increased by 21% to $87 million. Exploration expenditure increased by 8% to $40 million, principally in platinum group metals and base metals, generally reflecting increased access following the recovery from previous Covid-19 disruptions. Evaluation expenditure increased by 34% to $47 million, driven by higher spend in base metals and iron ore.

Corporate and other activities

Due to the previously announced delay in the Polokwane smelter rebuild at PGMs, which impacts refined production, there will be a build-up in work-in-progress inventory.

Working capital will also increase at Quellaveco (Copper Peru) reflecting the ongoing ramp-up.

For more information on Anglo American's announcements during the period (including our 2022 interim results), please find links to our Press Releases:

-- 20 October 2022 | Anglo American and Thyssenkrupp Steel to collaborate on greener steelmaking technologies

-- 10 October 2022 | Anglo American leadership changes - De Beers

-- 10 October 2022 | Kumba - Force Majeure declared by Transnet due to strike action

-- 5 October 2022 | Anglo American rough diamond sales value for De Beers' eighth sales cycle of 2022

-- 4 October 2022 | Anglo American and EDF Renewables agree to renewable energy partnership in South Africa to form Envusa Energy - launching 600MW of wind and solar projects in first phase

-- 26 September 2022 | Anglo American to begin copper shipments from Quellaveco

-- 23 September 2022 | Anglo American non-executive director change

-- 14 September 2022 | Anglo American launches EUR745 million sustainability-linked bond

-- 8 September 2022 | Anglo American Platinum revises refined production guidance as quality assurance processes detect sub-standard materials received for the Polokwane smelter rebuild

-- 31 August 2022 | Anglo American rough diamond sales value for De Beers' seventh sales cycle of 2022

-- 28 July 2022 | Anglo American Interim Results 2022

-- 27 July 2022 | Anglo American rough diamond sales value for De Beers' sixth sales cycle of 2022

-- 21 July 2022 | Q2 2022 Production Report

-- 14 July 2022 | Anglo American partners with Nippon Steel to advance steelmaking decarbonisation

-- 12 July 2022 | Anglo American announces first copper production from Quellaveco project in Peru

-- 4 July 2022 | Anglo American appoints Helena Nonka as Group Director of Strategy and Business Development

Notes

-- This Production Report for the quarter ended 30 September 2022 is unaudited.

-- Production figures are sometimes more precise than the rounded numbers shown in this Production Report.

-- Copper equivalent production shows changes in underlying production volume. It is calculated by expressing each product's volume as revenue, subsequently converting the revenue into copper equivalent units by dividing by the copper price (per tonne). Long-term forecast prices are used, in order that period-on-period comparisons exclude any impact for movements in price.

-- Please refer to page 16 for information on forward-looking statements.

In this document, references to "Anglo American", the "Anglo American Group", the "Group", "we", "us", and "our" are to refer to either Anglo American plc and its subsidiaries and/or those who work for them generally, or where it is not necessary to refer to a particular entity, entities or persons. The use of those generic terms herein is for convenience only, and is in no way indicative of how the Anglo American Group or any entity within it is structured, managed or controlled. Anglo American subsidiaries, and their management, are responsible for their own day-to-day operations, including but not limited to securing and maintaining all relevant licences and permits, operational adaptation and implementation of Group policies, management, training and any applicable local grievance mechanisms. Anglo American produces group-wide policies and procedures to ensure best uniform practices and standardisation across the Anglo American Group but is not responsible for the day to day implementation of such policies. Such policies and procedures constitute prescribed minimum standards only. Group operating subsidiaries are responsible for adapting those policies and procedures to reflect local conditions where appropriate, and for implementation, oversight and monitoring within their specific businesses.

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                        Emma Waterworth 
 marcelo.esquivel@angloamerican.com      emma.waterworth@angloamerican.com 
 Tel: +44 (0)20 7968 8891                Tel: +44 (0)20 7968 8574 
 
 South Africa                            Michelle Jarman 
 Nevashnee Naicker                       michelle.jarman@angloamerican.com 
 nevashnee.naicker@angloamerican.com     Tel: +44 (0)20 7968 1494 
 Tel: +27 (0)11 638 3189 
 
 Sibusiso Tshabalala 
 sibusiso.tshabalala@angloamerican.com 
 Tel: +27 (0)11 638 2175 
 

Notes to editors:

Anglo American is a leading global mining company and our products are the essential ingredients in almost every aspect of modern life. Our portfolio of world-class competitive operations, with a broad range of future development options, provides many of the future-enabling metals and minerals for a cleaner, greener, more sustainable world and that meet the fast growing every day demands of billions of consumers. With our people at the heart of our business, we use innovative practices and the latest technologies to discover new resources and to mine, process, move and market our products to our customers - safely and sustainably.

As a responsible producer of diamonds (through De Beers), copper, platinum group metals, premium quality iron ore and steelmaking coal, and nickel - with crop nutrients in development - we are committed to being carbon neutral across our operations by 2040. More broadly, our Sustainable Mining Plan commits us to a series of stretching goals to ensure we work towards a healthy environment, creating thriving communities and building trust as a corporate leader. We work together with our business partners and diverse stakeholders to unlock enduring value from precious natural resources for the benefit of the communities and countries in which we operate, for society as a whole, and for our shareholders. Anglo American is re-imagining mining to improve people's lives.

www.angloamerican.com

Forward-looking statements and third-party information:

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, prospects and projects (including development plans and objectives relating to Anglo American's products, production forecasts and Ore Reserve and Mineral Resource positions) and sustainability performance related (including environmental, social and governance) goals, ambitions, targets, visions, milestones and aspirations, 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 project development capabilities and delivery, recovery rates and other operational capabilities, safety, health or environmental incidents, the effects of global pandemics and outbreaks of infectious diseases, the impact of attacks from third parties on our information systems, natural catastrophes or adverse geological conditions, climate change and extreme weather events, the outcome of litigation or regulatory proceedings, the availability of mining and processing equipment, the ability to obtain key inputs in a timely manner, the ability to produce and transport products profitably, the availability of necessary infrastructure (including transportation) services, the development, efficacy and adoption of new technology, challenges in realising resource estimates or discovering new economic mineralisation, the impact of foreign currency exchange rates on market prices and operating costs, the availability of sufficient credit, liquidity and counterparty risks, the effects of inflation, political uncertainty, tensions and disputes and economic conditions in relevant areas of the world, evolving societal and stakeholder requirements and expectations, shortages of skilled employees, the actions of competitors, activities by courts, regulators and governmental authorities such as in relation to permitting or forcing closure of mines and ceasing of operations or maintenance of Anglo American's assets 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 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, but 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 information.

(c)Anglo American Services (UK) Ltd 2022. TM and TM are trade marks of Anglo American Services (UK) Ltd.

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