Duncan Wanblad, Chief Executive of Anglo American, said: “We were pleased with the performance in the first quarter, with copper production increasing by 11% as Quellaveco achieved its highest plant throughput rate, while Collahuasi and El Soldado in Chile benefitted from higher grades. Steelmaking coal production also increased by 7%, due to the performance at the Aquila longwall and Capcoal open cut operations. De Beers implemented changes to lower its diamond production for the year by c.3 million carats which, combined with lower production from our PGMs operations, resulted in flat(1) production overall for the Group compared to the same period of last year.

“We are driving operational excellence across our assets, focusing on stability and effective cost management as levers to deliver significant value through the cycle. We are progressing through our asset review to optimise value by simplifying and improving the overall quality of the portfolio. With copper now representing 30% of our total production, and having the benefit of several well-sequenced and value-accretive copper growth options within our portfolio over the medium-term, we are also setting up the business to deliver and grow into the major demand themes."

Q1 2024 highlights

Copper production increased by 11% reflecting higher throughput at Quellaveco, despite the impact of planned lower grades, as well as the benefit of higher grades and throughput at Collahuasi and El Soldado.
Steelmaking coal production increased by 7% driven by the Aquila and Capcoal operations, partially offset by the Dawson open cut operation and ongoing challenges with the strata conditions at Moranbah.
Iron ore production was flat, with a strong performance from Minas-Rio, up 4%, offset by a planned decrease at Kumba to align with third-party logistics constraints.
Rough diamond production decreased by 23%, primarily due to changes implemented to lower production in response to market inventory levels. Full year 2024 production guidance has been lowered to 26–29 million carats, with unit costs revised accordingly to c.$90/carat(2).
Production from our Platinum Group Metals (PGMs) operations was 7% lower, reflecting expected lower volumes from Kroondal (which is reported as third-party purchase of concentrate from November 2023) and lower production at Amandelbult.
Nickel production was broadly unchanged.
Production Q1 2024 Q1 2023 % vs. Q1 2023
Copper (kt)(3) 198 178 11%
Nickel (kt)(4) 9.5 9.7 (2)%
Platinum group metals (koz)(5) 834 901 (7)%
Diamonds (Mct)(6) 6.9 8.9 (23)%
Iron ore (Mt)(7) 15.1 15.1 0%
Steelmaking coal (Mt) 3.8 3.5 7%
Manganese ore (kt) 784 841 (7)%
(1) Total production across Anglo American’s products is calculated on a copper equivalent basis, including the equity share of De Beers’ production and using long-term forecast prices.
(2) Production guidance was previously 29–32 million carats and unit cost guidance was previously c.$80/carat.
(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).
(4) Reflects nickel production from the Nickel operations in Brazil only (excludes 4.7 kt of Q1 2024 nickel production from the Platinum Group Metals business).
(5) Produced ounces of metal in concentrate. 5E + gold (platinum, palladium, rhodium, ruthenium and iridium plus gold). Reflects own mined production and purchase of concentrate.
(6) Production is on a 100% basis, except for the Gahcho Kué joint operation which is on an attributable 51% basis.
(6) Wet basis.

Production and unit cost guidance summary

2024 production guidance 2024 unit cost guidance(1)
Copper(2) 730–790 kt c.157c/lb
Nickel(3) 36-38 kt c.600c/lb
Platinum Group Metals(4) 3.3-3.7 Moz c.$920/oz
Diamonds(5) 26-29 Mct (previously 29-32 Mct)
c.$90/ct (previously c.$80/ct)
Iron Ore(6) 58-62 Mt c.$37/t
Steelmaking Coal(7) 15-17 Mt c.$115/t
(1) Unit costs exclude royalties and depreciation and include direct support costs only. FX rates used for 2024F unit costs: c.850 CLP:USD, c.3.7 PEN:USD, c.5.0 BRL:USD, c.19 ZAR:USD, c.1.5 AUD:USD.
(2) Copper business only. On a contained-metal basis. Total copper production is the sum of Chile and Peru: Chile: 430–460 kt and Peru: 300–330 kt. Unit cost for Chile: c.190 c/lb and Peru: c.110 c/lb. The copper unit costs are impacted by FX rates and pricing of by-products, such as molybdenum. Production in Chile will be weighted to the first half of the year owing to the closure of the Los Bronces plant from the middle of the year; production is also subject to water availability. Production in Peru will be weighted to the second half of the year, primarily as a result of the copper grades temporarily declining to between 0.6-0.7% in the first half of the year.
(3) Nickel operations in Brazil only. The Group also produces approximately 20 kt of nickel on an annual basis from the PGM operations.
(4) 5E + gold produced metal in concentrate (M&C) ounces. Includes own mined production and purchased concentrate (POC) volumes. M&C production by source is expected to be own mined of 2.1–2.3 million ounces and purchase of concentrate of 1.2–1.4 million ounces. The average M&C split by metal is Platinum: ~45%, Palladium: ~35% and Other: ~20%. Refined production (5E + gold) is expected to be 3.3–3.7 million ounces. Production remains subject to the impact of Eskom load-curtailment. Unit cost is per own mined 5E + gold PGMs metal in concentrate ounce.
(5) Production is on a 100% basis, except for the Gahcho Kué joint operation which is on an attributable 51% basis. Production is lowered in response to the higher than average levels of inventory in the market and the expected gradual recovery in rough diamonds through the rest of the year, with the unit cost, which is based on De Beers' share of production volume, adjusted accordingly. Venetia continues to transition to underground operations where production is expected to ramp-up over the next few years.
(6) Wet basis. Total iron ore is the sum of operations at Kumba in South Africa and Minas-Rio in Brazil. Kumba: 35–37 Mt and Minas-Rio: 23–25 Mt. Kumba production is subject to third-party rail and port availability and performance. Unit cost for Kumba: c.$38/t and Minas-Rio: c.$35/t.
(7) Production excludes thermal coal by-product. FOB unit cost comprises managed operations and excludes royalties. The next longwall moves scheduled at Moranbah and Grosvenor are both in Q3 2024. A walk-on/walk-off longwall move at Aquila, that will have a minimal production impact, has been rescheduled from Q2 to Q3 2024 due to production delays from strata conditions.

Realised prices

Q1 2024 Q1 2023 Q1 2024 vs. Q1 2023 FY 2023
Copper (USc/lb)(1) 395 447 (12) % 384
Copper Chile (USc/lb)(2) 396 455 (13) % 384
Copper Peru (USc/lb) 394 433 (9) % 384
Nickel (US$/lb)(3) 6.43 10.16 (37) % 7.71
Platinum Group Metals
Platinum (US$/oz)(4) 889 984 (10) % 946
Palladium (US$/oz)(4) 1,043 1,690 (38) % 1,313
Rhodium (US$/oz)(4) 4,563 11,671 (61) % 6,592
Basket price (US$/PGM oz)(5) 1,483 2,131 (30) % 1,657
Diamonds
Consolidated average realised price ($/ct)(6) 201 163 23 % 147
Average price index(7) 110 138 (20) % 133
Iron Ore – FOB prices(8) 83 122 (32) % 114
Kumba Export (US$/wmt)(9) 87 121 (28) % 117
Minas-Rio (US$/wmt)(10) 77 125 (38) % 110
Steelmaking Coal – HCC (US$/t)(11) 299 301 (1) % 269
Steelmaking Coal – PCI (US$/t)(11) 214 278 (23) % 214
(1) Average realised total copper price is a weighted average of the Copper Chile and Copper Peru realised prices.
(2) Realised price for Copper Chile excludes third-party sales volumes.
(3) Nickel realised price reflects the market discount for ferronickel (the product produced by the Nickel business).
(4) Realised price excludes trading.
(5) Price for a basket of goods per PGM oz. The dollar basket price is the net sales revenue from all metals sold (PGMs, base metals and other metals) excluding trading, per PGM 5E + gold ounces sold (own mined and purchased concentrate) excluding trading.
(6) Consolidated average realised price based on 100% selling value post-aggregation.
(7) Average of the De Beers price index for the Sights within the 12-month period. The De Beers price index is relative to 100 as at December 2006.
(8) Average realised total iron ore price is a weighted average of the Kumba and Minas-Rio realised prices.
(9) Average realised export basket price (FOB Saldanha) (wet basis as product is shipped with ~1.6% moisture). The realised prices could differ to Kumba's stand-alone results due to sales to other Group companies. Average realised export basket price (FOB Saldanha) on a dry basis is $89/t (Q1 2023: $123/t), lower than the dry 62% Fe benchmark price of $105/t (FOB South Africa, adjusted for freight).
(10) Average realised export basket price (FOB Açu) (wet basis as product is shipped with ~9% moisture).
(11) Weighted average coal sales price achieved at managed operations. The average realised price for thermal coal by-product for Q1 2024, decreased by 39% to $118/t (Q1 2023: $194/t). FY 2023 was $145/t.

Notes

This Production Report for the first quarter ended 31 March 2024 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, and includes the equity share of De Beers’ production. 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 17 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.

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