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25 July 2024
Anglo American Interim Results 2024
Strong operational performance delivers
• Underlying EBITDA* of
• Copper and Iron Ore performance and margins particularly strong, contributing
• Unit costs improved by 4%, reflecting weaker currencies, operational improvements and effective cost control
•
• Net debt* of
• On track to reduce annual costs by c.
•
Duncan Wanblad, Chief Executive of Anglo American, said: "I am very encouraged by a strong operational performance that delivered steady volumes and a 4% improvement in unit costs, while still facing weak cyclical markets for PGMs and diamonds. We are on track to reduce our annual run rate costs by
"In the first six months of this year, I am very sad to report that we lost two colleagues who died in an accident at our Amandelbult PGMs mine in
"Our focus on operational performance is delivering results, most notably in our Copper and Premium Iron Ore businesses, with EBITDA margins* of 53% and 43% respectively. Copper is tracking well, Minas-Rio achieved its strongest first half production for several years, and Kumba continues to perform strongly while we work with Transnet on rail reliability. The Steelmaking Coal business has also improved its production and cost performance, though the incident at Grosvenor will set production back. Most importantly, everyone there is safe. Our process to divest that business is well under way with continued strong interest from a large number of potential new owners.
"Underlying EBITDA for the half year of
"We are transforming Anglo American by focusing on our world-class asset base in copper, premium iron ore and crop nutrients, thereby accelerating the recognition of value inherent in our business. From that compelling platform, I believe our proven project delivery capabilities, global relationship networks and longstanding reputation as a responsible mining company will together help us unlock the outstanding mineral endowment options within our portfolio and other growth opportunities that we will aim to secure over time. We have taken clear and decisive action to deliver value in the long term interests of our shareholders and other stakeholders, from a portfolio that will deliver the products that underpin the energy transition, improving global living standards and food security."
|
Six months ended |
30 June 2024 |
30 June 2023 |
Change |
|
US$ million, unless otherwise stated |
|||
|
Revenue |
14,464 |
15,674 |
(8) % |
|
Underlying EBITDA* |
4,980 |
5,114 |
(3)% |
|
EBITDA margin* |
33% |
31% |
|
|
Attributable free cash flow* |
506 |
(466) |
n/a |
|
(Loss)/Profit attributable to equity shareholders of the Company |
(672) |
1,262 |
n/a |
|
Basic underlying earnings per share* ($) |
1.06 |
1.38 |
(23)% |
|
Basic earnings per share ($) |
(0.55) |
1.04 |
n/a |
|
Interim dividend per share ($) |
0.42 |
0.55 |
(24)% |
|
Group attributable ROCE* |
14% |
18% |
|
Terms with this symbol * are defined as Alternative Performance Measures (APMs). For more information, refer to page 83.
Sustainability performance
Key sustainability performance indicators(1)
Anglo American tracks its strategic progress using KPIs that are based on our seven pillars of value: safety and health, environment, socio-political, people, production, cost, and financial. In addition to the financial performance set out above and our operational performance on pages 7-33, our performance for the first four pillars is set out below:
|
Pillar of value |
Metric |
30 June 2024 |
30 June 2023 |
Target |
Target achieved |
|
Safety and health |
Work-related fatal injuries |
2 |
1 |
Zero |
Not achieved |
|
|
Total recordable injury frequency rate (TRIFR) per million hours(2) |
1.69 |
1.91 |
Reduction year on year |
On track |
|
|
New cases of occupational disease(2) |
9 |
3 |
Reduction year on year |
Not achieved |
|
Environment |
GHG emissions - Scopes 1 & 2 (Mt CO2e)(3) |
5.0 |
5.1 |
Reduce absolute GHG emissions by 30% by 2030 |
On track |
|
|
Fresh water withdrawals (ML)(3) |
17,261 |
14,096 |
Reduce fresh water abstraction in water scarce areas by 50% by 2030 |
On track for 2030 target |
|
|
Level 4-5 environmental incidents |
0 |
0 |
Zero |
On track |
|
Socio-political |
Social Way 3.0 implementation(4) |
73% |
66% |
Full implementation of the Social Way 3.0 by end 2022 |
Behind schedule |
|
|
Number of jobs supported off site(5) |
139,300 |
114,500 |
|
|
|
|
Local procurement spend ($bn)(6) |
6.2 |
6.5 |
|
|
|
|
Taxes and royalties ($m)(7) |
2,481 |
2,828 |
|
|
|
People |
Women in management(8) |
35% |
33% |
To achieve 33% by 2023 |
Achieved |
|
|
Women in the workforce |
26% |
25% |
|
|
|
|
Voluntary labour turnover |
4% |
3% |
< 5% |
On track |
(1) Sustainability performance indicators for the six months ended 30 June 2024 and the comparative period are not externally assured.
(2) TRIFR data for the prior period has been restated following adjustments to working hours identified through the year end assurance process. Prior period data related to new cases of occupational disease has been restated due to cases identified in H1 2023 that were not confirmed until H2 2023.
(3) Data for current and prior period is to 31 May 2024 and 31 May 2023, respectively. Prior period comparatives have been restated to reflect data model updates and the results of external assurance findings at 31 December 2023.
(4) Current and prior period data presented is at 31 December 2023 and 2022, respectively. While sites are assessed annually against all requirements applicable to their context, for consistency during the transition period, the metric reflects performance against the Social Way foundational requirements. For further information on progress, see Thriving Communities commentary on page 5.
(5) Jobs supported since 2018, in line with the Sustainable Mining Plan Livelihoods stretch goal. Current and prior period data presented is at 31 December 2023 and 2022, respectively.
(6) Local procurement is defined as procurement from businesses that are registered and based in the country of operation - also referred to as in-country procurement - and includes local procurement expenditure from the Group's subsidiaries and a proportionate share of the Group's joint operations, based on shareholding.
(7) Taxes and royalties include all taxes and royalties borne and taxes collected by the Group. This includes corporate income taxes, withholding taxes, mining taxes and royalties, employee taxes and social security contributions and other taxes, levies and duties directly incurred by the Group, as well as taxes incurred by other parties (e.g. customers and employees) but collected and paid by the Group on their behalf. Figures disclosed are based on cash remitted, being the amounts remitted by entities consolidated for accounting purposes, plus a proportionate share, based on the percentage shareholding, of joint operations. Taxes borne and collected by equity accounted associates and joint ventures are not included. Prior period comparatives have been restated to reflect data model updates.
(8) Management includes middle and senior management across the Group.
Sustainable Mining Plan
Anglo American's longstanding and holistic approach to sustainability helps to build trust with our employees and stakeholders across society, reduces operational risk and in many cases delivers direct financial value for our business. Our reputation as a responsible mining company supports our ability to access future resource development opportunities, both from the significant endowments within our business and more broadly - critical to delivering our growth ambitions.
Our Sustainable Mining Plan is designed to be a flexible, living plan and we continue to evolve it as we learn and make progress and as technologies develop, while also ensuring it stays relevant and suitably stretching, in tune with our employees' and stakeholders' ambitions for our business. We are reviewing the Sustainable Mining Plan to reflect the Group's future portfolio composition that was announced in May 2024. We are also using this opportunity to ensure that our sustainability ambitions deliver tangible value to our many stakeholders and will set out an update when we have completed the review, likely only once the portfolio transformation has made significant progress. Progress against the existing Sustainable Mining Plan targets is discussed below.
Zero mindset
Occupational safety
Anglo American's number one value is safety, and it is our first priority, always. We are committed to preventing our people from being harmed at work. Keeping our workforce safe is an unremitting endeavour and comes foremost in everything we do. We are unconditional about safety and train, equip and empower our people to work safely, because we believe that everybody, everywhere should return home safe and well at the end of their working day.
In 2024, we continued to focus on three key safety levers that we believe are critical to improving front line safety: supporting operational leaders to spend more time in the field; using our Operating Model principles to deliver planned work; and implementing our new Contractor Performance Management framework across the business. Following the achievement of a record low total recordable injury frequency rate (TRIFR) of 1.78 in 2023, we continued to make solid progress in our safety journey, with our TRIFR further improving to 1.69 in the six months to 30 June 2024 (30 June 2023: 1.91). While encouraged by this continued improvement, we are deeply saddened to have lost two colleagues at Dishaba mine, part of the Amandelbult PGMs complex in
Following the underground fire that started at the Grosvenor steelmaking coal mine in
Alongside our continued use of innovative technologies to help make Anglo American a safer and healthier place to work, we are building an ever stronger safety culture, based on the established concept of Visible Felt Leadership. This programme is focused on ensuring all leaders, at all levels in the organisation, are spending sufficient time in the field having quality interactions with our workforce. These interactions are helping to deliver considerable improvements in work conditions and execution methods, as well as empowering our employees and contractors to speak up if they have concerns about the safety of their work activities.
Applying the principles of our Operating Model across all our activities, but particularly to our maintenance work, has played a major role in lowering injury levels across the Group. Planned maintenance allows for better identification and mitigation of risk and ensures work is appropriately resourced and executed, with the right people with the correct skills completing the work safely.
To deliver safe, responsible production, we know that we need to be better at how we work with our contractors and how we support their safety on our sites, ensuring they too feel valued and respected as a critical contributor to everyone's safety. Our Contractor Performance Management programme is a three-year initiative, started in 2023, which has been designed to ensure that the work our contractors undertake is well planned, aligned with our Operating Model and meaningfully risk assessed and resourced with the right skills.
Occupational health
Our health and well-being strategy, aligned with the World Health Organization (WHO) Healthy Workplace model, has been updated to include Total Worker Health concepts that integrate actions to support the health and well-being of our workforce and host communities. This integrated strategy incorporates our WeCare well-being programme and other social performance activities, including our livelihoods support programmes. It requires us to work synergistically to support our people and achieve our health and well-being goals.
Occupational diseases
In the six months to 30 June 2024, there were 9 reported new cases of occupational disease, all of which were related to noise exposure (30 June 2023: 3, 2 of which were related to noise exposure). A significant challenge in reporting occupational disease is that many hazards do not cause immediate symptoms or measurable health harms. Occupational disease is often not detectable or definable until many years after exposure. This means cases reported in a given year are most likely to reflect accumulated past working conditions. This latency challenge underscores the importance of risk assessment and preventative management strategies, continuous environment monitoring, and comprehensive worker occupational health surveillance. These activities are an ongoing focus at Anglo American and, as we continue to improve the rigour of our reporting processes and proactive case management, we may detect further historic cases of occupational disease.
Healthy environment
Our existing Sustainable Mining Plan includes commitments to be a leader in environmental stewardship. These include our aims, by 2030, to reduce operational greenhouse gas (GHG) emissions (Scopes 1 and 2) by 30%; achieve a 50% reduction in fresh water abstraction in water scarce areas; and deliver net-positive impacts in biodiversity across our managed operations.
Climate change
In addition to our existing 2030 operational emissions reduction target, we have stated our aim to achieve carbon neutrality across our operations by 2040, and an ambition to halve our Scope 3 emissions, also by 2040. We continue to make progress across the current portfolio in reducing our emissions, with our Scope 1 and 2 GHG emissions lower than the prior period. Since 2023, our managed operations in
Methane emissions from the Australian steelmaking coal operations represent the largest component of our current Scope 1 emissions and we continue to work hard to capture, use and abate those emissions. We have invested significantly over several years, in excess of
We have set an ambition to achieve carbon neutrality across our controlled ocean freight activities by 2040, with an interim 30% reduction in emissions by 2030. The delivery in Q1 2024 of the final two vessels of a 10-strong chartered fleet of Capesize+ liquefied natural gas (LNG) dual-fuelled bulk carriers, marks a significant milestone towards achieving our commitment to more sustainable shipping. The LNG-dual-fuelled vessels offer an estimated 35% reduction in emissions compared to ships fuelled by conventional marine oil fuel and are the most efficient vessels of their type today.
Water
With more than 80% of our global assets located in water scarce areas, we need to reduce our dependence on fresh water and are working on a number of projects and technologies to help us achieve our freshwater reduction targets.
At 31 December 2023, Anglo American had reduced fresh water withdrawals by 22%, compared with the 2015 baseline. Although this is encouraging, progress is not always linear due to factors such as variable operational requirements and changing precipitation levels.
In the five months to 31 May 2024, fresh water withdrawals increased to 17,261 ML (31 May 2023: 14,096 ML), owing to higher water use across most sites, driven principally by an increase in production at Steelmaking Coal, adverse hydrological conditions at several operations and an increase in dewatering, particularly at Kumba (Iron Ore). While annual variability is expected until such time as major fresh water savings and replacement projects are delivered, we believe we are still on track to meet our 2030 target of a 50% reduction in fresh water withdrawals in water scarce areas.
Biodiversity
As custodians of the land and ecosystems around our operations, we seek to improve the footprint of our operations and direct our efforts towards delivering positive and lasting environmental outcomes for host communities and our wide range of stakeholders. Within our Sustainable Mining Plan we have a commitment to deliver Net Positive Impact on biodiversity across Anglo American by 2030, compared with the 2018 baseline.
We have now completed detailed biodiversity baseline assessments across all our managed operations, defining and assessing significant biodiversity features including key habitats and species, as well as identifying those ecosystems that require protection and restoration. Detailed biodiversity management programmes have been developed for each site and have been independently reviewed by our NGO partners.
We have continued to refine our measurement processes to develop, in partnership with two long term NGO partners, a new science-based metric called Quality Habitat Hectares (QHH) that will help us to measure our contribution to internal and global biodiversity targets, as well as nature-positive outcomes. QHH enables an objective assessment of quantity and quality that are reliable and replicable through incorporating the extent, type and condition of ecosystems and species impacted in and around our operations.
We believe that the development of a metric such as QHH represents a significant advancement in the metals and mining sector, offering a new tool for measuring and reporting on nature related impacts and dependencies. This metric can serve as a catalyst for enhancing transparency and accountability across industries, encouraging businesses to disclose their interactions with nature more openly. By adopting such measures, companies can align their approach with the mitigation hierarchy, which prioritises avoiding, minimising, and compensating for biodiversity impacts.
Thriving communities
We continue working to strengthen and broaden our social performance competencies through embedding our social performance management system - the Social Way - across Anglo American. Through the implementation of the Social Way - which we believe is one of the most robust and comprehensive social performance management systems in the mining sector - and through our collaborative regional development initiatives, we are working actively to support local and regional economies, as well as the lives and livelihoods of the communities where we operate.
Since the launch of our Sustainable Mining Plan, we have supported more than 139,000 off site jobs through livelihoods programmes. One example of where we are offering support beyond traditional social investment is our Impact Finance Network, which provides tailored technical assistance to help match third-party impact capital to host-region, non-mining impact businesses and enterprises. Since 2021, we have supported a pipeline of over 100 businesses across southern
While we did not meet our ambitious goal of full implementation of the Social Way at all sites by the end of 2022, we continue to progress embedding the system and have implemented a significant majority of the core elements. In 2023, we re-baselined the site-level implementation pathways and by the end of the year, our operations reported 96% delivery against those implementation pathways. The Social Way is critical to underpinning many of our ambitious 2030 Sustainable Mining Plan targets, demonstrating our commitment to partnering with host communities and governments.
Trusted corporate leader
Tightly linked to our safety imperative and our Values, we strive to create a workplace that places people at its heart. We are committed to promoting an inclusive and diverse environment where every colleague is valued and respected for who they are, and has the opportunity to fulfil their potential.
By the end of 2023, we exceeded our consolidated target of 33% female representation across our management population, reaching 34%. For the six months to 30 June 2024, the percentage of females in management increased to 35%. We have also seen positive improvements in other key performance metrics such as the percentage of women in the workforce which increased to 26% in the period (30 June 2023: 25%).
To demonstrate the high standards to which we operate, we have been at the forefront of developing and adopting some of the most trusted sustainability certification programmes for the mining sector, including the Initiative for Responsible Mining Assurance (IRMA) and the Responsible Jewellery Council (RJC).
Having met our Sustainable Mining Plan interim target in 2022 of having half of our operations undergo third-party audits against recognised responsible mine certification systems, we continue to work towards our 2025 target for audits of all operations.
Some of the most recent achievements for our sites that were assessed against IRMA's comprehensive mining standard include:
- Our Mototolo and Amandelbult mines in
- Confirmation from IRMA that the Unki PGMs mine in
- Our Minas-Rio and Barro Alto mines in
The success of our business is shared with a wide range of stakeholders, including national governments and host communities, through the significant corporate tax, mining tax and royalty payments that we make. Total taxes and royalties borne and taxes collected amounted to
Operational and financial review of Group results for the six months ended 30 June 2024
Operational performance
|
Production |
H1 2024 |
H1 2023 |
% vs H1 2023 |
|
Copper (kt)(1) |
394 |
387 |
2% |
|
Iron ore (Mt)(2) |
30.7 |
30.7 |
0% |
|
Platinum group metals (koz)(3) |
1,755 |
1,844 |
(5)% |
|
Diamonds (Mct)(4) |
13.3 |
16.5 |
(19)% |
|
Steelmaking coal (Mt) |
8.0 |
6.9 |
16% |
|
Nickel (kt)(5) |
19.5 |
19.6 |
(1)% |
|
Manganese ore (kt) |
1,140 |
1,811 |
(37)% |
(1) Contained metal basis. Reflects copper production from the Copper operations in
(2) Wet basis.
(3) Produced ounces of metal in concentrate. 5E + gold (platinum, palladium, rhodium, ruthenium and iridium plus gold). Reflects own mined production and purchase of concentrate.
(4) Production is on a 100% basis, except for the Gahcho Kué joint operation which is on an attributable 51% basis.
(5) Reflects nickel production from the Nickel operations in
Production volumes decreased by 1% on a copper equivalent basis, as Manganese was impacted by a suspension to the Australian operations due to the impact of tropical cyclone Megan in the first half of 2024, the disposal of Kroondal at PGMs, and the decision to intentionally lower production at De Beers in response to weaker rough diamond demand. This is offset by Steelmaking Coal, as the underground operations were impacted by longwall moves in the first half of 2023, and higher throughput at Copper Peru since commercial production was reached in June 2023.
Group copper equivalent unit costs decreased by 4% driven by weaker local currencies. Excluding the favourable impact of foreign exchange, unit costs were flat as high unit costs at De Beers, due to intentional lower production and the ramp up of Venetia underground, and higher costs at Copper Peru, as the asset has now moved into commercial production, were offset by effective cost control measures at Copper Chile and favourable unit costs at Steelmaking Coal, driven by higher production.
For more information on each Business' production and unit cost performance, please refer to the following pages 16-33.
Financial performance
Anglo American's profit/(loss) attributable to equity shareholders decreased to a loss of
Underlying EBITDA*
Group underlying EBITDA decreased by
Underlying EBITDA* by segment
|
|
Six months ended |
Six months ended |
|
$ million |
30 June 2024 |
30 June 2023 |
|
Copper |
2,038 |
1,492 |
|
Iron Ore |
1,413 |
1,775 |
|
Crop Nutrients |
(22) |
(20) |
|
PGMs |
675 |
667 |
|
De Beers |
300 |
347 |
|
Steelmaking Coal |
592 |
615 |
|
Nickel |
28 |
110 |
|
Manganese |
11 |
138 |
|
Corporate and other |
(55) |
(10) |
|
Total |
4,980 |
5,114 |
Underlying EBITDA* reconciliation for the six months ended 30 June 2023 to six months ended 30 June 2024
The reconciliation of underlying EBITDA from
|
$ billion |
|
|
H1 2023 underlying EBITDA* |
5.1 |
|
Price |
(0.6) |
|
Foreign exchange |
0.2 |
|
Inflation |
(0.3) |
|
Net cost and volume |
0.7 |
|
Other |
(0.1) |
|
H1 2024 underlying EBITDA* |
5.0 |
Price
Average market prices for the Group's basket of products decreased by 10% compared with the first half of 2023, reducing underlying EBITDA by
Foreign exchange
Favourable foreign exchange benefited underlying EBITDA by
Inflation
The Group's weighted average CPI was 4% in the first six months of 2024, as inflation continued to increase in all regions, albeit lower than the 6% in 2023 over the same period. The impact of CPI inflation on costs reduced underlying EBITDA by
Net cost and volume
The net impact of cost and volume was a
Other
The
Underlying earnings*
Group underlying earnings decreased to
Reconciliation from underlying EBITDA* to underlying earnings*
|
|
Six months ended |
Six months ended |
|
$ million |
30 June 2024 |
30 June 2023 |
|
Underlying EBITDA* |
4,980 |
5,114 |
|
Depreciation and amortisation |
(1,517) |
(1,265) |
|
Net finance costs and income tax expense |
(1,644) |
(1,550) |
|
Non-controlling interests |
(529) |
(629) |
|
Underlying earnings* |
1,290 |
1,670 |
Depreciation and amortisation
Depreciation and amortisation increased by 20% to
Net finance costs and income tax expense
Net finance costs, before special items and remeasurements, were
The underlying effective tax rate was higher than the prior period at 40.3% (30 June 2023: 37.0%), impacted by the relative levels of profits arising in the Group's operating jurisdictions. The tax charge for the period, before special items and remeasurements, was
Non-controlling interests
The share of underlying earnings attributable to non-controlling interests of
Special items and remeasurements
Special items and remeasurements (after tax and non-controlling interests) are a net charge of
Full details of the special items and remeasurements recorded are included in note 11 to the Condensed financial statements.
Net debt*
|
$ million |
2024 |
2023 |
|
Opening net debt* at 1 January |
(10,615) |
(6,918) |
|
Underlying EBITDA* from subsidiaries and joint operations |
4,802 |
4,685 |
|
Working capital movements |
562 |
(701) |
|
Other cash flows from operations |
(203) |
(53) |
|
Cash flows from operations |
5,161 |
3,931 |
|
Capital repayments of lease obligations |
(200) |
(125) |
|
Cash tax paid |
(884) |
(1,096) |
|
Dividends from associates, joint ventures and financial asset investments |
142 |
208 |
|
Net interest(1) |
(476) |
(303) |
|
Distributions paid to non-controlling interests |
(300) |
(362) |
|
Sustaining capital expenditure |
(2,197) |
(2,024) |
|
Sustaining attributable free cash flow* |
1,246 |
229 |
|
Growth capital expenditure and other(2) |
(740) |
(695) |
|
Attributable free cash flow* |
506 |
(466) |
|
Dividends to Anglo American plc shareholders |
(503) |
(905) |
|
Acquisitions and disposals |
16 |
197 |
|
Foreign exchange and fair value movements |
1 |
(2) |
|
Other net debt movements(3) |
(493) |
(704) |
|
Total movement in net debt* |
(473) |
(1,880) |
|
Closing net debt* at 30 June |
(11,088) |
(8,798) |
(1)Includes cash outflows of
(2)Growth capital expenditure and other includes
(3)Includes the purchase of shares (including for employee share schemes) of
Net debt (including related derivatives) of
Cash flow
Cash flows from operations and Cash conversion*
Cash flows from operations increased to
These factors contributed to the Group's cash conversion increasing to 86% (30 June 2023: 52%).
Capital expenditure*
|
|
Six months ended |
Six months ended |
|
$ million |
30 June 2024 |
30 June 2023 |
|
Stay-in-business |
1,370 |
1,242 |
|
Development and stripping |
531 |
510 |
|
Life-extension projects |
301 |
274 |
|
Proceeds from disposal of property, plant and equipment |
(5) |
(2) |
|
Sustaining capital |
2,197 |
2,024 |
|
Growth projects |
694 |
636 |
|
Total capital expenditure |
2,891 |
2,660 |
Capital expenditure increased to
Sustaining capital expenditure increased to
Growth capital expenditure was
Attributable free cash flow*
The Group's attributable free cash flow increased to an inflow of
Shareholder returns
In line with the Group's established dividend policy to pay out 40% of underlying earnings, the Board has approved an interim dividend of 40% of first half underlying earnings, equal to
Balance sheet
Net assets decreased by
Attributable ROCE*
Attributable ROCE decreased to 14% (30 June 2023: 18%). Annualised attributable underlying EBIT decreased to
Liquidity and funding
Group liquidity stood at
During the first six months of 2024, the Group issued
Consequently, the weighted average maturity on the Group's bonds increased to 7.8 years (31 December 2023: 7.4 years).
Attractive growth options
Anglo American continues to evolve its portfolio of competitive, world class assets towards those future-enabling products that are fundamental to enabling a low carbon economy, improving global living standards, and that help address food security. In addition to a strong pipeline of organic growth projects, Anglo American also continues to progress opportunities with industry partners in respect of adjacent assets where there is significant value to be unlocked.
Growth projects (metrics presented on a 100% basis unless otherwise indicated)
Progress and current expectations in respect of our key growth projects are as follows:
|
Operation |
Scope |
Capex $bn |
Remaining capex $bn |
First production |
|
Copper |
|
|
|
|
|
Collahuasi |
Commissioning of the fifth ball mill, adding c.15 ktpa (44% share), started at the end of October 2023 and is ongoing.
Investment in additional crushing capacity and flotation cells is expected to add production of c.10 ktpa (44% share) on average from 2026.
Further debottlenecking options remain under study and are expected to add c.15 ktpa (44% share) with capex from 2025 to 2028. Beyond that, studies and permitting are required to be finalised for a fourth processing line in the plant and mine expansion that would add up to c.150 ktpa (44% share) from ~2032. The desalination plant that is currently under construction has been designed to accommodate capital efficient expansion in light of the growth potential at the asset.
|
Fifth ball mill c.0.1 (44% share)
Additional crushing capacity and flotation cells c.0.2 (44% share) |
0.0
0.2 (44% share)
Expansion studies ongoing. Subject to permitting and approvals |
2023
2026 |
|
Quellaveco |
The plant throughput is permitted to a level of 127.5 ktpd and a recent change in legislation has increased the permit allowance from 5% to 10%, enabling throughput of up to c.140 ktpd. In light of this, studies are underway for an incremental expansion to c.140 ktpd, potentially by late 2026. A subsequent increase to c.150 ktpd, which was already considered in the development of the greenfield project, is in the pre-feasibility study stage, and subject to further permitting, that could benefit production from 2027. No additional water rights will be required. Further local and regional expansion potential at Quellaveco is also being evaluated. |
Expansion studies ongoing. Subject to permitting and approvals. |
||
|
Sakatti |
Polymetallic greenfield project in |
|
Studies ongoing. Subject to permitting and approvals. |
c.2033 |
|
Los Bronces |
The underground project will partly replace lower grade open pit tonnes with higher grade underground tonnes. It is located 5km from the existing pit and will use the same plant and tailings deposit capacity used by the current operation, without requiring any additional fresh water.
The underground development was permitted as part of the wider Los Bronces Integrated Project permit granted in 2023. Studies are under way with the aim being to develop a modern operation with minimal surface impact while maximising value delivery from the project.
|
|
Studies ongoing. Subject to approvals. |
Early 2030s |
|
Premium iron ore |
|
|
|
|
|
Minas-Rio |
The acquisition of the neighbouring Serpentina resource from Vale is currently expected to complete in Q4 2024, subject to regulatory conditions. At completion, Vale will contribute Serpentina and Serpentina is of a higher iron ore grade than Minas-Rio's ore and contains predominantly softer friable ore that together are expected to translate into lower unit costs and capital requirements.
The combination of Minas-Rio with the scale and quality of the Serpentina endowment also offers considerable expansion opportunities, including the potential to double production towards 60Mtpa. Vale will also have an option to acquire an additional 15% shareholding in the enlarged Minas-Rio for cash (at fair value calculated at the time of exercise of the option), if and when certain events relating to a future expansion occur. Near-term access to the Serpentina ore as well as the potential future expansion are both subject to obtaining normal licenses, which are expected to take a number of years.
|
|
Subject to studies, permitting and approvals. |
|
|
Crop Nutrients |
|
|
|
|
|
Woodsmith |
New polyhalite (natural mineral fertiliser) mine being developed in |
Refer to page 21 for more information on project progress |
||
Life-extension projects (metrics presented on a 100% basis unless otherwise indicated)
Progress and current expectations in respect of our key life-extension projects are as follows:
|
Operation |
Scope |
Capex $bn |
Remaining capex $bn |
Expected first production |
|
Diamonds |
|
|
|
|
|
Venetia |
4 Mctpa underground replacement for the open pit. First production achieved in 2023 with ramp-up over the next few years as development continues. |
2.3 |
0.6 |
Achieved in June 2023 |
|
Jwaneng |
9 Mctpa (100% basis) replacement for Cuts 7 and 8. The Cut-9 expansion of Jwaneng will extend the life of the mine by 9 years to 2036. |
0.4 (19.2% share) |
0.1 (19.2% share) |
2027 |
|
Iron Ore |
|
|
|
|
|
Kolomela |
High grade iron ore replacement project of c.4 Mtpa. The development of a new pit, Kapstevel South, and associated infrastructure at Kolomela to sustain output of 10-11Mtpa. |
0.4 |
0.0 |
First ore mined in June 2024 |
|
PGMs |
|
|
|
|
|
Mototolo/ Der Brochen |
Project leverages the existing Mototolo infrastructure, enabling mining to extend into the adjacent and down-dip Der Brochen resource to extend life of asset to c.2074. |
0.3 |
0.2 |
2024 |
|
Mogalakwena |
Evaluating various options to support possible future underground operations of the mine through progressing the drilling, twin exploration decline and studies for underground operations. |
Studies under review with a number of options being considered |
||
Technology projects(1)
The Group plans to invest c.
(1)Expenditure relating to technology projects is included within operating expenditure, or if it meets the accounting criteria for capitalisation, within Growth capital expenditure.
The Board
There have been no changes to the composition of the Board in the six months to 30 June 2024.
At the date of this report, four (40%) of the 10 Board directors are female and two (20%) identify as minority ethnic. The names of the directors at the date of this report and the skills and experience our Board members contribute to the long term sustainable success of Anglo American are set out on the Group's website: www.angloamerican.com/about-us/leadership-team
Principal risks and uncertainties
Anglo American 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 relate to the following:
- Catastrophic (tailings dam failure; geotechnical failure; mineshaft failure; and fire and explosion) and natural catastrophe risks
- Product prices
- Cybersecurity
- Geopolitical
- Community and social relations
- Safety
- Corruption
- Operational performance (including interruption to power supply and the failure of critical third-party owned and operated infrastructure)
- Regulatory and permitting
- Water
- Climate change
- Pandemic
- Future demand
The Group is exposed to changes in the economic environment, including tax rates and regimes, as with any other business. Details of any key risks and uncertainties specific to the period are covered in the business reviews on pages 16-33. Details of relevant tax matters are included in note 7 to the Condensed financial statements.
The principal risks and uncertainties facing the Group at the 2023 year end are set out in detail in the strategic report section of the Integrated Annual Report 2023, published on the Group's website www.angloamerican.com.
Copper
Operational and financial metrics|
|
Production volume |
Sales volume |
Price |
Unit cost* |
Group revenue* |
Underlying EBITDA* |
EBITDA margin* |
Underlying EBIT* |
Capex* |
ROCE* |
|
|
kt |
kt(1) |
c/lb(2) |
c/lb(3) |
$m(4) |
$m |
|
$m |
$m |
|
|
Copper Total |
394 |
391 |
429 |
152 |
3,875 |
2,038 |
53% |
1,564 |
855 |
25% |
|
Prior period |
387 |
389 |
393 |
179 |
3,493 |
1,492 |
43% |
1,176 |
878 |
19% |
|
Copper |
247 |
242 |
437 |
176 |
2,455 |
1,196 |
49% |
893 |
620 |
33% |
|
Prior period |
249 |
238 |
393 |
205 |
2,263 |
691 |
31% |
418 |
657 |
20% |
|
Los Bronces(5) |
97 |
92 |
n/a |
241 |
873 |
369 |
42% |
244 |
146 |
n/a |
|
Prior period |
113 |
103 |
- |
310 |
843 |
128 |
15% |
24 |
340 |
- |
|
Collahuasi(6) |
125 |
127 |
n/a |
119 |
1,204 |
782 |
65% |
654 |
463 |
n/a |
|
Prior period |
114 |
114 |
- |
114 |
1,014 |
565 |
56% |
447 |
297 |
- |
|
Other operations(7) |
24 |
23 |
n/a |
n/a |
378 |
45 |
12% |
(5) |
11 |
n/a |
|
Prior period |
23 |
21 |
- |
- |
406 |
(2) |
0% |
(53) |
20 |
- |
|
Copper |
147 |
149 |
415 |
112 |
1,420 |
842 |
59% |
671 |
235 |
17% |
|
Prior period |
138 |
151 |
394 |
132 |
1,230 |
801 |
65% |
758 |
221 |
18% |
(1)Excludes 168 kt third-party sales (30 June 2023: 178 kt).
(2)Represents realised copper price and excludes impact of third-party sales.
(3)C1 unit cost includes by-product credits.
(4)Group revenue is shown after deduction of treatment and refining charges (TC/RCs).
(5)Figures on a 100% basis (Group's share: 50.1%).
(6)44% share of Collahuasi production, sales and financials.
(7)Other operations form part of the results of Copper Chile. Production and sales are from El Soldado mine (figures on a 100% basis, Group's share: 50.1%). Financials include El Soldado and Chagres (figures on a 100% basis, Group's share: 50.1%), third-party trading, projects and corporate costs. El Soldado mine C1 unit costs decreased by 26% to 224c/lb (30 June 2023: 301c/lb).
(8)Figures on a 100% basis (Group's share: 60%).
Operational performance
Copper
Copper production of 246,500 tonnes was broadly in line with the prior period (30 June 2023: 249,400 tonnes), due to planned higher throughput and grades at Collahuasi and El Soldado, offset by planned lower grade at Los Bronces.
At Los Bronces, production decreased by 14% to 97,100 tonnes (30 June 2023: 112,500 tonnes), due to planned lower ore grade (0.48% vs 0.52%) and throughput associated with continued ore hardness. As previously disclosed, the unfavourable ore characteristics in the current mining area will continue to impact operations until the next phase of the mine, where the grades are expected to be higher and the ore softer. Development work for this phase is now under way and it is expected to benefit production from early 2027 (refer to 'Operational outlook' below for further details). As planned, in line with our broader focus on improving cash generation, the older, smaller (c.40% of plant capacity) and more costly Los Bronces processing plant will be placed on care and maintenance by the end of July, in light of the current unfavourable ore characteristics in the mine.
At Collahuasi, Anglo American's attributable share of copper production increased by 9% to 125,000 tonnes (30 June 2023: 114,400 tonnes), due to higher throughput driven by the fifth ball mill that started up in Q4 2023 and planned higher grade (1.13% vs 1.07%), partially offset by lower copper recovery.
Production at El Soldado increased by 8% to 24,400 tonnes (30 June 2023: 22,500 tonnes) due to planned higher grade (0.94% vs 0.84%).
The central zone of
Copper
Quellaveco production increased by 7% to 147,300 tonnes (30 June 2023: 137,800 tonnes), reflecting the higher throughput reached since commercial production was achieved in June 2023, despite the impact of planned lower grades during the first six months of 2024. Operational performance is tracking well against the revised mine plan.
Focus is on the ramp up of the coarse particle recovery plant that treats flotation tails, leading to improved metal recoveries.
Markets
|
|
|
|
|
|
30 June 2024 |
30 June 2023 |
|
Average market price (c/lb) |
412 |
394 |
|
Average realised price (Copper Chile - c/lb) |
437 |
393 |
|
Average realised price (Copper Peru - c/lb) |
415 |
394 |
The differences between the market price and the realised prices are largely a function of provisional pricing adjustments and the timing of sales across the year. At Copper Chile, 72,800 tonnes of copper were provisionally priced at 432 c/lb at 30 June 2024 (30 June 2023: 134,500 tonnes provisionally priced at 377 c/lb). At Copper Peru, 64,600 tonnes of copper were provisionally priced at 410 c/lb at 30 June 2024 (30 June 2023: 91,700 tonnes provisionally priced at 377 c/lb).
Copper prices were firmer during the first six months of 2024, with LME prices averaging 412 c/lb, up 5% from last year (30 June 2023: 394 c/lb). Investor flows into base metals helped drive copper prices higher, reaching an all-time nominal high in May, offsetting slower physical demand growth from
Financial performance
Underlying EBITDA for Copper increased by 37% to
Copper
Underlying EBITDA increased by 73% to
Capital expenditure decreased by 6% to
Copper
Underlying EBITDA increased by 5% to
Capital expenditure increased by 6% to
Operational outlook
Copper
Los Bronces
Los Bronces is currently mining a single phase with expected lower grades. Stripping of additional mining phases is progressing according to plan, aiming to mitigate previous delays in mine development, permitting and operational challenges.
Los Bronces is a world class copper deposit, accounting for more than 2% of the world's known copper resources. While the operation effectively works through the challenges in the mine, and until the economics improve, the older, smaller (c.40% of production volumes) and more costly Los Bronces processing plant will be placed on care and maintenance, now scheduled for the end of July 2024. This value over volume decision will enable the business to build on the strong cost performance from the first half of 2024, with some cost savings from the expected plant closure already being achieved, improving the asset's competitive position.
The development of the first phase of the Los Bronces integrated water security project is also ongoing, which will secure a large portion of the mine's water needs through a desalinated water supply from 2026.
Pre-feasibility studies to advance the permitted Los Bronces open pit expansion and underground development are progressing and are expected to be finalised in mid-2025.
Collahuasi
Collahuasi is a world class orebody with significant growth potential. Near term grades are expected to be c.1.05% TCu, with the exception of 2025 where the grade temporarily declines to c.0.95% TCu. Various debottlenecking options are being studied that are expected to add c.25,000 tonnes per annum (tpa) (our 44% share) between 2025-2028. Beyond that, studies and permitting are under way for a fourth processing line in the plant and mine expansion that would add up to 150,000 tpa (our 44% share). Timing of that expansion is subject to the permitting process; assuming permit approval in 2027, first production could follow from c.2032.
A desalination plant is currently under construction that will meet a large portion of the mine's water requirements when complete in 2026 and has been designed to accommodate capital-efficient expansion as the fourth processing line project progresses. Until then, the operation continues to progress mitigation measures to optimise and reduce water consumption and secure third-party sources.
El Soldado
Production in 2024 is expected to be broadly comparable to 2023, before declining to 30,000-35,000 tpa until end of mine life which is expected by mid-2028. Options to extend the life of the mine beyond 2028 are being evaluated.
Copper
These impacts are reflected in the unchanged guidance provided on pages 34-35. Production guidance for
Copper
A localised geotechnical fault in one of the high grade phases previously scheduled for mining in 2024 necessitated a revised mining plan in the latter part of 2023, as it was determined that a change in the inter-ramp angle of that phase was required to ensure safety standards. This stripping work is progressing well, with other lower grade phases being mined, until the high grade phase is accessed in 2027.
There is significant expansion potential that could sustain production beyond the initial high grade area. Currently, the plant throughput is permitted to a level of 127,500 tonnes per day (tpd) and a recent change in legislation has increased the permit allowance from 5% to 10%, enabling throughput to increase from 133,800 tpd to c.140,000 tpd. In light of this, studies are underway for an incremental expansion to c.140,000 tpd, potentially by late 2026. A subsequent increase to c.150,000 tpd is in the pre-feasibility study stage, and subject to further permitting, that could benefit production from 2027. No additional water rights will be required. Beyond that, different expansion alternatives are under study, including a possible third ball mill. There is also interesting regional potential that our Discovery team is progressing - including the adjacent Mamut area, c.10 km away.
These impacts are reflected in the unchanged guidance provided on pages 34-35. Production guidance for
(1) The copper unit costs are impacted by FX rates and pricing of by-products, such as molybdenum. 2024 unit cost guidance was set at c.850 CLP:USD for
Iron Ore
Operational and financial metrics
|
|
Production volume |
Sales volume |
Price |
Unit cost* |
Group revenue* |
Underlying EBITDA* |
EBITDA margin* |
Underlying EBIT* |
Capex* |
ROCE* |
|
|
Mt(1) |
Mt(1) |
$/t(2) |
$/t(3) |
$m |
$m |
|
$m |
$m |
|
|
Iron Ore Total |
30.7 |
29.5 |
93 |
37 |
3,296 |
1,413 |
43% |
1,171 |
495 |
21% |
|
Prior period |
30.7 |
30.3 |
105 |
36 |
3,660 |
1,775 |
48% |
1,554 |
382 |
30% |
|
Kumba Iron Ore(4) |
18.5 |
18.1 |
97 |
39 |
1,988 |
888 |
45% |
742 |
266 |
47% |
|
Prior period |
18.7 |
19.0 |
106 |
39 |
2,169 |
1,105 |
51% |
975 |
277 |
69% |
|
Iron Ore Brazil (Minas-Rio) |
12.3 |
11.4 |
86 |
33 |
1,308 |
525 |
40% |
429 |
229 |
14% |
|
Prior period |
12.0 |
11.4 |
104 |
32 |
1,491 |
670 |
45% |
579 |
105 |
20% |
(1) Production and sales volumes are reported as wet metric tonnes. Product is shipped with c.1.6% moisture from Kumba and c.9% moisture from Minas-Rio.
(2) Prices for Kumba Iron Ore are the average realised export basket price (FOB Saldanha) (wet basis). Prices for Minas-Rio are the average realised export basket price (FOB Brazil) (wet basis). Prices for total iron ore are a blended average.
(3) Unit costs are reported on an FOB wet basis. Unit costs for total iron ore are a blended average.
(4) Sales volumes, stock and realised price could differ to Kumba's stand-alone reported results due to sales to other Group companies.
Operational performance
Production decreased by 2% to 18.5 Mt (30 June 2023: 18.7 Mt), driven by a 12% decrease at Kolomela to 5.3Mt (30 June 2023: 6.0Mt) partly offset by a 3% increase at Sishen to 13.2 Mt (30 June 2023: 12.8 Mt). Kumba reduced production in the fourth quarter of 2023 to alleviate mine stockpile constraints, followed by an operational reconfiguration implemented in the first quarter of 2024 to align with Transnet's rail capacity. Sales volumes were 18.1 Mt, 5% below the prior period (30 June 2023: 19.0 Mt), reflecting the impact of equipment challenges at Saldanha Bay port, which were partly mitigated by a proactive mini-shut and stacker reclaimer repairs in April.
As a result of rail and port challenges during the first half of the year, total finished stock increased by 1.1 Mt to 8.2 Mt, with stock at the mines increasing by 0.9 Mt to 7.4 Mt, above desired levels. Consequently, stock at the port remains low at 0.8 Mt, an increase of only 0.2 Mt in the first six months of the year.
Minas-Rio
Production increased by 2% to 12.3 Mt (30 June 2023: 12.0 Mt), reflecting the strongest half-year performance since 2020 and a record second quarter. This performance was a result of good preparation at the mine at the end of 2023, with high stock levels available to secure the ore feed, despite the highest rainfall in the last six years and lower mining fleet availability. Production also benefitted from an improved performance at the crushing circuit and beneficiation plant.
Markets
|
|
|
|
|
|
30 June 2024 |
30 June 2023 |
|
Average market price (Platts 62% Fe CFR China - $/tonne) |
118 |
118 |
|
Average market price (MB 65% Fe Fines CFR - $/tonne) |
131 |
132 |
|
Average realised price (Kumba export - $/tonne) (FOB wet basis) |
97 |
106 |
|
Average realised price (Minas-Rio - $/tonne) (FOB wet basis) |
86 |
104 |
The Platts 65-62 differential averaged
Kumba's FOB realised price of
Minas-Rio's pellet feed product is higher grade (with iron content of c.67% and lower impurities) so the MB 65 Fines index is used when referring to the Minas-Rio product. The Minas-Rio realised price of
Financial performance
Underlying EBITDA for Iron Ore decreased by 20% to
Kumba
Underlying EBITDA decreased by 20% to
Capital expenditure decreased by 4% to
Minas-Rio
Underlying EBITDA decreased by 22% to
Capital expenditure was 118% higher at
Operational outlook
KumbaProduction is expected to remain at 35-37 Mtpa(1) for the period 2024 to 2026, in line with the expected third-party logistics constraint and to help ensure a balanced value chain. Unit costs are expected to be between
These impacts are reflected in the unchanged guidance provided on pages 34-35. Production guidance for 2024 is 35-37 Mt, subject to third-party rail and port availability and performance, and 2024 unit cost guidance is c.
(1) Production and sales volumes, stock and realised price are reported on a wet basis and could differ from Kumba's stand-alone results due to sales to other Group companies.
Minas-Rio
Following the record quarterly production in the fourth quarter of 2023, focus is on embedding consistent, stable and strong operating performance, while increasing the maturity of capital projects to sustain and grow production volumes. Optionality is also being evaluated to maximise long term value in light of the agreement to acquire and integrate the contiguous Serra da Serpentina high grade iron ore resource.
In parallel, Minas-Rio is focused on increasing tailings storage capacity. The tailings filtration plant project is on track for completion by early 2026 and alternative, additional disposal options continue to be studied.
In mid-2025, Minas-Rio will undertake the next pipeline inspection of the 529 km pipeline that carries iron ore slurry from the plant to the port. Improvements were made to the inspection strategy that extended its duration to ensure the rigour of data collection while also incorporating some additional plant maintenance to coincide with the operational stoppage. Pipeline inspections take place every five years and are validated by external consultants and agreed with the Brazilian Environmental Authorities.
These impacts are reflected in the unchanged guidance provided on pages 34-35. Production guidance for 2024 is 23-25 Mt and 2024 unit cost guidance is c.
(2) 2024 unit cost guidance was set at c.19 ZAR:USD for Kumba and c.5.0 BRL:USD for Minas-Rio.
Crop Nutrients
Operational and financial metrics
|
|
Production volume |
Sales volume |
Group revenue* |
Underlying EBITDA* |
EBITDA margin* |
Underlying EBIT* |
Capex* |
ROCE* |
|
|
|
|
$m |
$m |
|
$m |
$m |
|
|
Crop Nutrients |
n/a |
n/a |
86 |
(22) |
n/a |
(22) |
500 |
n/a |
|
Prior period |
- |
- |
93 |
(20) |
- |
(20) |
307 |
- |
|
Woodsmith project |
n/a |
n/a |
n/a |
n/a |
n/a |
n/a |
500 |
n/a |
|
Prior period |
- |
- |
- |
- |
- |
n/a |
307 |
- |
|
Other(1) |
n/a |
n/a |
86 |
(22) |
n/a |
(22) |
n/a |
n/a |
|
Prior period |
- |
- |
93 |
(20) |
- |
(20) |
- |
- |
(1)Other comprises projects and corporate costs as well as the share in associate results from The Cibra Group, a fertiliser distributor based in
Crop Nutrients
Anglo American is developing Woodsmith, a large scale, long-life Tier 1 asset in the north east of
The Woodsmith project is located on the
Progress update
Woodsmith project
In the first half of the year, the focus has been on continuing to progress core infrastructure activities of shaft sinking and tunnel boring, with good progress being made.
The service shaft is at a depth of 745 metres and has been undergoing preparatory works ahead of intersecting the Sherwood sandstone strata, expected in the second half of 2024. The sandstone is a key focus area for shaft sinking due to the expected hardness of the rock and potential for water fissures. The production shaft has reached a depth of 712 metres, and the tunnel has reached 29.2km of the total 37 km length.
On 14 May 2024, the Group announced that in order to support deleveraging of its balance sheet, it will be slowing the pace of development of the Woodsmith project in the near-term. Crop Nutrients is identified as one of the three key pillars of the Group's more focused portfolio, and as such the focus will shift to preserving the long-term value of this high quality asset, and enabling the project's future development. To that end, work is under way to identify and secure one or more strategic syndication partners for Woodsmith.
Forecast capital expenditure for 2024 remains c.
A detailed review has been conducted to identify the critical value-adding works to be executed during the slowdown period to de-risk the overall project schedule, preserve progress on areas that will be entering a period of care and maintenance, and further optimise certain scopes of the project ready for ramp-up when conditions allow.
Shaft sinking activities are planned to continue on the service shaft to progress through the key Sherwood sandstone strata, subject to capital allocation priorities. Sinking activities on the production shaft have now been paused and will enter a phase of care and maintenance. The tunnel has reached the final intermediate shaft at Ladycross. The tunnel boring machine is undergoing a planned maintenance stop during which time the tunnel and Ladycross shaft will be connected. Following this, tunnel boring activities will continue at a significantly reduced pace. During the slowdown period, key permits will be maintained to allow project ramp-up in due course.
The study programme, focused on enhancing the project's configuration, enabling efficient, scalable mining methods over time, and optimising additional infrastructure, is being rescoped to fit the revised funding and syndication plan, with critical technical studies planned to complete prior to future project approval and restart. The expected final design capacity remains c.13 Mtpa, subject to studies and approval.
The reduced pace of construction will result in an extended development schedule and, primarily due to this, an impairment charge of
We will continue to fund our Thriving Communities programmes that focus on vulnerable young people. We will also engage regularly with local stakeholders and community partners to ensure that they are informed of changes to the project and any concerns are addressed. We are currently working closely with a number of local organisations on a social response plan that will help people affected by the slowdown to find new roles in the local area through our partnerships with other businesses, suppliers and local councils.
Market development - POLY4
POLY4 provides farmers, through one core product, with a fertiliser solution to tackle the three key challenges facing the food industry today - the increasing demand for food from less available land; the need to reduce the environmental impact of farming; and the deteriorating health of soils.
The ongoing focus of market development activities has been to develop and implement detailed sales and marketing strategies for each region and to support customers with their own market development activities to further promote POLY4 to the end-users of the product - farmers. We have engaged deeper into the food value chain working with our distribution partners, leading
During the project slowdown period, the focus of marketing work will be on the key commercial and technical relationships that are already well established, maintaining presence in our key selling regions and consolidating the data that we have around product characteristics.
Woodsmith remains a Tier 1 resource entirely aligned with the demand trends of decarbonisation and food security. Anglo American has high confidence, backed by its proven track record in project delivery, to develop the Woodsmith project once the balance sheet is suitably deleveraged and the pathway to syndication is clear.
Platinum Group Metals (PGMs)
Operational and financial metrics
|
|
Production volume PGMs |
Sales volume PGMs |
Basket price |
Unit cost* |
Group revenue* |
Underlying EBITDA* |
EBITDA margin* |
Underlying EBIT* |
Capex* |
ROCE* |
|
|
koz(1) |
koz(2) |
$/PGM oz(3) |
$/PGM oz(4) |
$m |
$m |
|
$m |
$m |
|
|
PGMs |
1,755 |
1,974 |
1,442 |
976 |
2,796 |
675 |
24% |
481 |
455 |
17% |
|
Prior period |
1,844 |
1,807 |
1,885 |
993 |
3,531 |
667 |
19% |
505 |
449 |
20% |
|
Mogalakwena |
452 |
518 |
1,428 |
859 |
737 |
290 |
39% |
190 |
271 |
n/a |
|
Prior period |
461 |
462 |
1,930 |
961 |
898 |
437 |
49% |
355 |
210 |
- |
|
Amandelbult |
285 |
320 |
1,601 |
1,211 |
511 |
119 |
23% |
92 |
27 |
n/a |
|
Prior period |
299 |
309 |
2,174 |
1,200 |
676 |
206 |
30% |
187 |
29 |
- |
|
Other operations(5) |
315 |
487 |
1,361 |
933 |
523 |
15 |
3% |
(31) |
157 |
n/a |
|
Prior period |
438 |
414 |
1,815 |
954 |
773 |
235 |
30% |
186 |
210 |
- |
|
Processing and trading(6) |
704 |
649 |
n/a |
n/a |
1,025 |
251 |
24% |
230 |
n/a |
n/a |
|
Prior period |
646 |
622 |
- |
- |
1,184 |
(211) |
(18)% |
(223) |
- |
- |
(1)Production reflects own-mined production and purchase of metal in concentrate. PGM volumes consist of 5E metals and gold.
(2)Sales volumes exclude tolling and third-party trading activities. PGM volumes consist of 5E metals and gold.
(3)Average US$ realised basket price, based on sold ounces (own mined and purchased concentrate). 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) per own mined PGM ounce of production.
(5)Includes Unki, Mototolo, our 50% share of Modikwa (joint operation), and our 50% share of Kroondal until the disposal of our interest in the joint operation on 1 November 2023. Other operations margin includes unallocated market development, care and maintenance, and corporate costs.
(6)Includes purchase of concentrate from joint operations and third parties for processing into refined metals, tolling and third-party trading activities, with the exception of production and sales volumes which exclude tolling and trading. The disposal of our 50% interest in Kroondal on 1 November 2023, resulted in Kroondal moving to a 100% third-party POC arrangement, until it transitions to a toll arrangement expected in H2 2024.
Operational performance
Total PGM production decreased by 5% to 1,755,100 ounces (30 June 2023: 1,844,300 ounces) primarily due to lower production from the Kroondal joint operation (now sold), difficult ground conditions at Mototolo and operational challenges at Amandelbult.
Own mined production
PGM production from own-managed mines (Mogalakwena, Amandelbult, Unki and Mototolo) and equity share of joint operations decreased by 12% to 1,051,500 ounces (30 June 2023: 1,198,700 ounces) due to the disposal of Kroondal. Second quarter production was 9% higher than the first quarter, positioning the business well into the second half of the year.
Amandelbult production decreased by 5% to 284,700 ounces (30 June 2023: 299,400 ounces) primarily due to operational challenges at the concentrator as a result of blending open pit ore in the first quarter. However, there were early-stage improvements in the second quarter driven by operational efficiencies which allowed for higher grades and throughput from underground material.
Mogalakwena production decreased by 2% to 452,100 ounces (30 June 2023: 461,400 ounces) primarily due to blending low grade stockpiles as the new bench cut sequence progressed during the second quarter, which resulted in higher waste tonnes extracted in the short term.
Production from other operations decreased by 28% to 314,700 ounces (30 June 2023: 437,900 ounces) mainly due to the disposal of Kroondal, difficult ground conditions at Mototolo as a section of the mine nears the end of its life and the planned, temporary mining of a low-grade section at Unki.
Purchase of concentrate
Purchase of concentrate increased by 9% to 703,600 ounces (30 June 2023: 645,600 ounces) reflecting the transition of Kroondal to a 100% third-party purchase of concentrate arrangement. Normalising the comparative period to include 100% of Kroondal results in a 6% decrease, reflecting lower third-party receipts, as well as the planned ramp-down at Kroondal.
Refined production and sales volumes
Refined PGM production (excluding toll-treated metal) increased by 5% to 1,781,500 ounces (30 June 2023: 1,699,800 ounces) driven by a draw down of work-in-progress inventory compared to the same period last year. There was no Eskom load-curtailment during the first half of the year.
PGM sales volumes increased by 9% to 1,973,600 ounces (30 June 2023: 1,807,300 ounces) resulting from higher refined production and due to a draw down of finished goods compared to the same period last year.
Markets
|
|
|
|
|
|
30 June 2024 |
30 June 2023 |
|
Average platinum market price ($/oz) |
945 |
1,009 |
|
Average palladium market price ($/oz) |
976 |
1,505 |
|
Average rhodium market price ($/oz) |
4,602 |
8,957 |
|
Realised basket price ($/PGM oz) |
1,442 |
1,885 |
Average PGM prices in H1 2024 were considerably lower than in H1 2023, driving a 24% decrease in the realised basket price to
Platinum's average price in the first half of 2024 suffered due to a stronger dollar compared to the same period in 2023, albeit strong investor demand on signs of a tightening supply and demand balance and surging prices for gold and silver have provided support through the period. The palladium price has, despite periodic rallies, continued to trend lower during most of this period on poor speculative sentiment. Rhodium's large year-on-year fall was driven by events in the first half of 2023, when it fell sharply on glass industry stock disposals, to hit a four-year low as of mid-year. After that, prices stabilised, before modestly strengthening in the first half of 2024 on solid automotive buying.
Sales of light vehicles that require PGM catalytic converters continued to rise in the first half of 2024, adding around 2% on the same period in 2023. This was despite slowing growth in the overall light vehicle sector this year compared with 2023 due to the fading of pent-up demand and some other consumer headwinds. Helping combustion sales was a moderation to the growth in sales of battery-electric vehicles. Plug-in hybrid electric vehicles continue to take share, at around 6% in 2024 so far, from 4% last year.
Financial performance
Underlying EBITDA increased to
Capital expenditure of
Operational outlook
PGM prices remain at low levels and the prevailing macro-economic conditions and uncertainty prompted the difficult but necessary action to reconfigure our PGM business in the first half of 2024 to ensure the long term sustainability and competitive position of our operations.
The consultation process for section 189A restructuring has been completed and the Mortimer Smelter placed on care and maintenance at the end of April 2024.
Overall, sustainable cost reduction initiatives will deliver annual cost savings of c.
These extensive measures will improve the positioning of these world-class PGM assets for the long term, securing the highly attractive value proposition of Mogalakwena.
These impacts are reflected in the unchanged guidance provided on pages 34-35. PGM metal in concentrate production guidance for 2024 is 3.3-3.7 million ounces, with own-mined output of 2.1-2.3 million ounces and purchase of concentrate of 1.2-1.4 million ounces. Refined PGM production guidance for 2024 is 3.3-3.7 million ounces. Production remains subject to the impact of Eskom load-curtailment.
Unit cost guidance for 2024 is c.
(1) Unit cost is per own mined 5E + gold PGMs metal in concentrate ounce. 2024 unit cost guidance was set at c.19 ZAR:USD.
De Beers - Diamonds
Operational and financial metrics(1)
|
|
Production volume |
Sales volume |
Price |
Unit cost* |
Group revenue* |
Underlying EBITDA* |
EBITDA margin(6) |
Underlying EBIT* |
Capex* |
ROCE*(7) |
|
|
'000 cts |
'000 |
$/ct(3) |
$/ct(4) |
$m(5) |
$m |
|
$m |
$m |
|
|
De Beers |
13,312 |
11,945 |
164 |
85 |
2,247 |
300 |
13% |
150 |
264 |
(4)% |
|
Prior period |
16,520 |
15,303 |
163 |
63 |
2,831 |
347 |
12% |
190 |
302 |
5% |
|
|
9,697 |
n/a |
145 |
36 |
n/a |
177 |
n/a |
150 |
32 |
n/a |
|
Prior period |
12,728 |
- |
175 |
30 |
- |
274 |
- |
242 |
30 |
- |
|
|
1,194 |
n/a |
435 |
270 |
n/a |
84 |
n/a |
66 |
18 |
n/a |
|
Prior period |
1,231 |
- |
550 |
223 |
- |
102 |
- |
84 |
20 |
- |
|
|
1,103 |
n/a |
93 |
107 |
n/a |
(13) |
n/a |
(41) |
164 |
n/a |
|
Prior period |
1,205 |
- |
130 |
68 |
- |
54 |
- |
50 |
202 |
- |
|
|
1,318 |
n/a |
80 |
51 |
n/a |
41 |
n/a |
23 |
28 |
n/a |
|
Prior period |
1,356 |
- |
89 |
46 |
- |
23 |
- |
1 |
32 |
- |
|
Trading |
n/a |
n/a |
n/a |
n/a |
n/a |
58 |
3% |
56 |
- |
n/a |
|
Prior period |
- |
- |
- |
- |
- |
61 |
2% |
58 |
1 |
- |
|
Other(8) |
n/a |
n/a |
n/a |
n/a |
n/a |
(47) |
n/a |
(104) |
22 |
n/a |
|
Prior period |
- |
- |
- |
- |
- |
(167) |
- |
(245) |
17 |
- |
(1)Prepared on a consolidated accounting basis, except for production, which is stated on a 100% basis except for the Gahcho Kué joint operation in
(2)Total sales volumes on a 100% basis were 12.7 million carats (30 June 2023: 17.3 million carats). Total sales volumes (100%) include De Beers Group's joint arrangement 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 businesses is based on 100% selling value post-aggregation of goods. Realised price includes the price impact of the sale of non-equity product and, as a result, is not directly comparable to the unit cost.
(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
(6)De Beers EBITDA margin includes the impact of mining as well as non-mining activities, third‑party sales, purchases, trading, brands and consumer markets and corporate. Mining EBITDA margin for De Beers is 40% (30 June 2023: 50%).
(7) De Beers' attributable ROCE is based on the prior 12 months, rather than the annualised half year performance, owing to the seasonality of sales and underlying EBIT profile of De Beers.
(8)Other includes Element Six, brands and consumer markets, and corporate.
Markets
Following a challenging 2023, demand for rough diamonds recovered slightly at the start of 2024 following the cessation of the voluntary moratorium on rough diamond imports into
Global consumer demand for natural diamond jewellery in the first half of 2024 experienced very different trends within the key consumer countries. In
The bifurcation of natural and lab-grown diamonds accelerated. Wholesale lab-grown diamond prices continue to fall with retailers, including Lightbox Jewelry, having to repeatedly reduce their prices to remain competitive, affecting their top-line performance and shifting retailer financial incentives increasingly towards natural diamond jewellery.
Operational performance
Mining
Rough diamond production reduced to 13.3 million carats (30 June 2023: 16.5 million carats). This reflects the decision to intentionally lower production and change short term plant feed mix in response to the weaker rough diamond demand due to the higher than average levels of inventory in the midstream and cautious retailer restocking.
In
Production in
Financial performance
Total revenue decreased to
Underlying EBITDA decreased to
De Beers has focused on managing its rough diamond inventory levels through the softer trading conditions by reducing production to supply into demand.
Capital expenditure decreased by 13% to
De Beers and the Government of the
Corporate strategy
De Beers communicated its new Origins strategy at the end of May, with a focus on four key pillars underpinned by a plan to streamline the business sustainably by reducing overhead costs by
Brands and consumer markets
De Beers Jewellers delivered positive performance in design-led pieces across high jewellery and collections, while bridal and solitaire demand remained challenged by macro-economic headwinds and slower Chinese recovery.
New natural diamond marketing collaborations were established with world-leading diamond jewellery retailers: Signet in the US and Chow Tai Fook in
De Beers also announced the introduction of DiamondProof, a new device to be used on the jewellery retail counter for rapidly distinguishing between natural diamonds and lab-grown stones, supporting retailers in communicating the attributes of natural diamonds, providing customers with enhanced confidence in the authenticity of their natural diamond purchase and deterring undisclosed lab-grown diamonds from entering the natural supply chain.
Market outlook
Weaker demand is expected to continue for some time, given the prevailing levels of midstream inventories. This is expected to be followed by a gradual recovery as demand from
The wholesale prices of lab-grown diamonds continue to fall, exacerbated by ballooning stocks of lab-grown diamonds in
In addition, there is a growing focus on diamond provenance which has the potential to reinforce demand for De Beers' ethically sourced rough diamonds, supported by provenance data registered on the blockchain Tracr™ platform, particularly given enhanced sanctions on Russian diamond import restrictions by G7 nations expected to be introduced in September 2024.
Operational outlookVenetia is processing lower grade surface stockpiles while the operation transitions to underground. This will continue as the underground production slowly ramps up following the first production blast in mid-2023. It is expected to ramp up to steady-state levels of c.4 million carats per annum production over the coming years.
Production in 2026 is expected to benefit from an expansion project at Gahcho Kué (
Near term unit cost will be impacted by a low carat profile from Venetia as the underground project ramps up and is subsequently expected to reach a steady-state of c.
These impacts are reflected in the guidance provided on pages 34-35. Production guidance for 2024 has been revised lower to 23-26 million carats (previously 26-29 million carats), following the finalisation of discussions with our production partners, as the business responds to the prolonged period of lower demand, higher than normal levels of inventory in the midstream, and a focus on working capital. Production remains subject to trading conditions.
2024 unit cost guidance is consequently revised to c.
(1) Unit cost is based on De Beers' share of production volume. 2024 unit cost guidance was set at c.19 ZAR:USD.
Steelmaking Coal
Operational and financial metrics
|
|
Production volume |
Sales volume |
Price |
Unit cost* |
Group revenue* |
Underlying EBITDA* |
EBITDA margin* |
Underlying EBIT* |
Capex* |
ROCE* |
|
|
Mt(1) |
Mt(2) |
$/t(3) |
$/t(4) |
$m |
$m |
|
$m |
$m |
|
|
Steelmaking Coal |
8.0 |
7.9 |
265 |
125 |
2,108 |
592 |
28% |
346 |
257 |
20% |
|
Prior period |
6.9 |
6.9 |
274 |
135 |
2,000 |
615 |
31% |
371 |
273 |
26% |
(1)Production volumes are saleable tonnes, excluding thermal coal production of 0.5 Mt (30 June 2023: 0.8 Mt). Includes production relating to third-party product purchased and processed at Anglo American's operations, and may include some product sold as thermal coal.
(2) Sales volumes exclude thermal coal sales of 0.7 Mt (30 June 2023: 0.8 Mt). Includes sales relating to third-party product purchased and processed by Anglo American.
(3)Realised price is the weighted average hard coking coal and PCI export sales price achieved at managed operations.
(4)FOB unit cost comprises managed operations and excludes royalties.
Operational performance
Production increased to 8.0 Mt (30 June 2023: 6.9 Mt), reflecting higher production from the underground operations, which were impacted by longwall moves during the first half of 2023.
The increased production was partly offset by ongoing challenges with difficult strata conditions at the Moranbah and Aquila longwall operations.
Markets
|
|
|
|
|
|
30 June 2024 |
30 June 2023 |
|
Average benchmark price - hard coking coal ($/tonne)(1) |
276 |
294 |
|
Average benchmark price - PCI ($/tonne)(1) |
164 |
261 |
|
Average realised price - hard coking coal ($/tonne)(2) |
274 |
280 |
|
Average realised price - PCI ($/tonne)(2) |
200 |
236 |
(1)Represents average spot prices.
(2)Realised price is the export sales price achieved at managed operations.
Average realised prices differ from the average market prices due to differences in material grade and timing of shipments. Hard coking coal (HCC) price realisation increased to 99% of average benchmark price (30 June 2023: 95%), primarily as a result of the timing of sales.
The average benchmark price for Australian HCC in the first half of 2024 was
Demand for premium seaborne metallurgical coal from Indian steelmakers remained robust due to strong crude steel output, but this demand was primarily met through long-term contracts, with limited observable spot buying. In
Financial performance
Underlying EBITDA decreased to
Capital expenditure decreased to
Operational outlook
Production has been suspended at the Grosvenor mine following an underground fire that started on 29 June 2024. The workforce was safely evacuated from the mine without injury. The mine has been stabilised and we are re-establishing comprehensive underground gas monitoring, prior to being able to assess the steps towards a safe re-entry into the mine. The procedures are expected to take several months as a result of the likely damage underground. The other steelmaking coal mines are operating normally.
Export steelmaking coal production guidance for 2024 is 14-15.5 Mt. A planned longwall move at Moranbah is expected to take place during Q4 2024. A walk-on/walk-off longwall move at Aquila, that will have a minimal production impact, is scheduled in Q3 2024.
2024 unit cost guidance is
(1) 2024 unit cost guidance was set at c.1.5 AUD:USD.
Nickel
Operational and financial metrics
|
|
Production volume |
Sales volume |
Price |
Unit cost* |
Group revenue* |
Underlying EBITDA* |
EBITDA margin* |
Underlying EBIT* |
Capex* |
ROCE* |
|
|
t |
t |
$/lb(1) |
c/lb(2) |
$m |
$m |
|
$m |
$m |
|
|
Nickel |
19,500 |
19,000 |
6.85 |
505 |
331 |
28 |
8% |
24 |
50 |
8% |
|
Prior period |
19,600 |
19,100 |
9.04 |
550 |
383 |
110 |
29% |
72 |
41 |
12% |
(1)Realised price.
(2)C1 unit cost.
Operational performance
Nickel production was stable at 19,500 tonnes (30 June 2023: 19,600 tonnes), reflecting operational stability at both sites.
Markets
|
|
|
|
|
|
30 June 2024 |
30 June 2023 |
|
Average market price ($/lb) |
7.94 |
10.98 |
|
Average realised price ($/lb) |
6.85 |
9.04 |
Differences between the market price (which is LME-based) and our realised price (the ferronickel price) are due to the discounts to the LME price, which depend on market conditions, supplier products and consumer preferences.
The average LME nickel price of
Financial performance
Underlying EBITDA decreased by 75% to
Capital expenditure increased by 22% to
Operational outlook
The next higher grade area of the pit is currently going through permitting, with production expected from 2028 to blend with the lower grade areas of the existing pit. Additional drilling is under way to increase coverage and enhance confidence levels within the geological models.
These impacts are reflected in the unchanged guidance provided on pages 34-35. Production guidance for 2024 is 36,000-38,000) tonnes. 2024 unit cost guidance is c.550 c/lb(1). The first half unit cost of 505c/lb is lower than guidance, reflecting the benefit of slightly higher volumes in the first half of the year and lower input costs, primarily from energy cost efficiencies.
(1) 2024 unit cost guidance was set at c.5.0 BRL:USD.
Manganese
Operational and financial metrics
|
|
Production volume |
Sales volume |
Group revenue* |
Underlying EBITDA* |
EBITDA margin* |
Underlying EBIT* |
Capex* |
ROCE* |
|
|
Mt |
Mt |
$m |
$m |
|
$m |
$m |
|
|
Manganese |
1.1 |
1.2 |
219 |
11 |
5 % |
(35) |
- |
(53)% |
|
Prior period |
1.8 |
1.8 |
346 |
138 |
40 % |
96 |
- |
95% |
Operational performance
Attributable manganese ore production has decreased 37% to 1.1 Mt (30 June 2023: 1.8 Mt), due to the temporary suspension of the Australian operations since mid-March 2024 as a result of the impact of tropical cyclone Megan. The weather event caused widespread flooding and significant damage to critical infrastructure. Operational recovery has focused on re-establishing critical services, dewatering targeted mining pits and in June, a phased return to mining activities has commenced. Engineering studies are under way on the infrastructure restoration.
The sale of the South African manganese alloy smelter, which has been on care and maintenance since March 2020, is subject to certain conditions and is expected to complete by the end of 2025.
Financial performance
Underlying EBITDA decreased by 92% to
The average benchmark price for manganese ore (Metal Bulletin 44% manganese ore CIF China) increased by 7% to
Corporate and Other
Financial metrics
|
|
Group revenue* |
Underlying EBITDA* |
Underlying EBIT* |
Capex* |
|
|
$m |
$m |
$m |
$m |
|
Corporate and Other |
231 |
(55) |
(216) |
15 |
|
Prior period |
254 |
(10) |
(95) |
28 |
|
Exploration |
n/a |
(60) |
(60) |
- |
|
Prior period |
- |
(65) |
(65) |
- |
|
Corporate activities and unallocated costs(1) |
231 |
5 |
(156) |
15 |
|
Prior period |
254 |
55 |
(30) |
28 |
(1)Revenue within Corporate activities and unallocated costs primarily relates to third-party shipping activities, as well as the Marketing business' energy solutions activities. Refer to note 4 to the Condensed financial statements for more detail.
Financial overview
Exploration
Exploration expenditure was
Corporate activities and unallocated costs
Underlying EBITDA was
Guidance summary
Production and unit costs
|
|
Unit costs 2024F |
Production volumes |
|||
|
|
Units |
2024F |
2025F |
2026F |
|
|
Copper(1) |
c.157 c/lb |
kt |
730-790 |
690-750 |
760-820 |
|
|
|
|
|
|
|
|
Iron ore(2) |
c. |
Mt |
58-62 |
57-61 |
58-62 |
|
|
|
|
|
|
|
|
PGMs - metal in concentrate(3)
|
c. |
Moz
|
3.3-3.7 |
3.0-3.4 |
3.0-3.4 |
|
|
|
|
|
|
|
|
Own mined |
|
Moz |
2.1-2.3 |
2.1-2.3 |
2.1-2.3 |
|
Purchase of concentrate |
|
Moz |
1.2-1.4 |
0.9-1.1 |
0.9-1.1 |
|
|
|
|
|
|
|
|
PGMs - refined(4) |
|
Moz |
3.3-3.7 |
3.0-3.4 |
3.0-3.4 |
|
Diamonds(5) |
c. |
Mct |
23-26 |
30-33 |
32-35 |
|
(previously c. |
|
(previously 26-29) |
|||
|
Steelmaking Coal(6) |
|
Mt |
14-15.5 |
17-19 |
18-20 |
|
|
|
|
|
|
|
|
Nickel(7) |
c.550 c/lb |
kt |
36-38 |
35-37 |
35-37 |
|
|
|
|
|
|
|
Further commentary on the operational outlook at each business is included within the respective business reviews on pages 16-33.
Note: Unit costs exclude royalties, depreciation and include direct support costs only. 2024 unit cost guidance was set at: c.850 CLP:USD, c.3.7 PEN:USD, c.5.0 BRL:USD, c.19 ZAR:USD, c.1.5 AUD:USD.
(1) Copper business only. On a contained-metal basis. Total copper is the sum of
(2) Wet basis. Total iron ore is the sum of Kumba and Minas-Rio. Unit cost total is a weighted average based on the mid-point of production guidance. 2024 Kumba: 35-37 Mt; Minas-Rio: 23-25 Mt. 2025 Kumba: 35-37 Mt; Minas-Rio: 22-24 Mt (impacted by pipeline inspection). 2026 Kumba: 35-37 Mt; Minas-Rio: 23-25 Mt. Kumba production is subject to the third-party rail and port availability and performance. 2024 unit cost guidance for Kumba is c.
(3) Unit cost is per own mined 5E + gold PGMs metal in concentrate ounce. Production is 5E + gold PGMs produced metal in concentrate ounces. Includes own mined production and purchased concentrate volumes - please see split in above table. The average metal in concentrate split by metal is Platinum: c.45%; Palladium: c.35% and Other: c.20%. POC volumes decline as agreements reach their contractual conclusion. Kroondal is expected to move from 100% third-party POC to a toll arrangement (4E metals) in H2 2024. In 2025, the Siyanda POC agreement will transition to a tolling arrangement (4E metals). At the end of 2026, the Sibanye-Stillwater toll agreement concludes (impacting POC due to the minor metal volumes retained). Production remains subject to the impact of Eskom load-curtailment.
(4) 5E + gold produced refined ounces. Includes own mined production and purchased concentrate volumes. Production remains subject to the impact of Eskom load-curtailment.
(5) Production is on a 100% basis except for the Gahcho Kué joint operation, which is on an attributable 51% basis, and remains subject to trading conditions. Production has been revised lower as the business responds to the prolonged period of lower demand, higher than normal levels of inventory in the midstream, and a focus on working capital. Venetia continues to transition to underground operations, it is expected to ramp-up to steady-state levels of c.4Mctpa production over the next few years. 2026 production benefits from an expansion at Gahcho Kué. Unit cost is based on De Beers' share of production and has consequently been revised higher reflecting the lower production. Near term unit cost is impacted by a low carat profile from Venetia as the underground ramps up and is subsequently expected to reach a steady-state of c.
(6)Steelmaking Coal FOB/tonne unit cost comprises managed operations and excludes royalties. Production excludes thermal coal by-product and reflects the challenging operating environment of the longwalls due to the gas, depth and strata as well as the operating protocols. 2024 production guidance excludes Grosvenor in the second half of the year given the current uncertainties. 2025 and 2026 production guidance includes c.4.0Mtpa of production from Grosvenor. A planned longwall move at Moranbah is expected to take place during Q4 2024. A walk-on/walk-off longwall move at Aquila, that will have a minimal production impact, is scheduled in Q3 2024.
(7) Nickel operations in
Capital expenditure ($bn)(1)
|
|
2024F |
2025F |
2026F |
|
Growth |
c. Includes |
c. Includes |
c. Includes nil Woodsmith capex(2) |
|
Sustaining |
c. Reflects c. |
c. Reflects c. |
c. Reflects c. c. |
|
Total |
c. |
c. |
c. |
Further details on Anglo American's high quality growth and life-extension projects, including details of the associated volumes benefit, are disclosed on pages 12-14.
Long term sustaining capital expenditure is expected to be
Other guidance
- 2024 depreciation:
- 2024 underlying effective tax rate: 40-42%(5)
- Dividend payout ratio: 40% of underlying earnings
- Net debt:EBITDA: <1.5x at the bottom of the cycle
(1)Cash expenditure on property, plant and equipment including related derivatives, net of proceeds from disposal of property, plant and equipment, and includes direct funding for capital expenditure from non-controlling interests. Guidance includes unapproved projects and is, therefore, subject to the progress of project studies. Refer to the H1 2024 results presentation for further detail on the breakdown of the capex guidance at project level. Given the current uncertainties, no adjustment has been made to the guidance for Grosvenor, which is currently suspended, with c.
(2)Woodsmith: operating costs for 2025 and 2026 are expected to be c.
(3)Collahuasi desalination capex shown includes related infrastructure, with other water management projects included in baseline sustaining. Attributable share of capex at 44%.
(4)Long term sustaining capex guidance is shown on a 2023 real basis.
(5) Underlying effective tax rate is highly dependent on a number of factors, including the mix of profits and any relevant tax reforms impacting the countries where we operate, and may vary from guidance.
|
Media |
Investors |
|
James Wyatt-Tilby james.wyatt-tilby@angloamerican.com Tel: +44 (0)20 7968 8759
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Tyler Broda tyler.broda@angloamerican.com Tel: +44 (0)20 7968 1470
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Marcelo Esquivel marcelo.esquivel@angloamerican.com Tel: +44 (0)20 7968 8891
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Emma Waterworth emma.waterworth@angloamerican.com Tel: +44 (0)20 7968 8574 |
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Rebecca Meeson-Frizelle rebecca.meeson-frizelle@angloamerican.com Tel: +44 (0)20 7968 1374
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Michelle Jarman michelle.jarman@angloamerican.com Tel: +44 (0)20 7968 1494 |
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Nevashnee Naicker nevashnee.naicker@angloamerican.com Tel: +27 (0)11 638 3189 |
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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 copper, nickel, platinum group metals, diamonds (through De Beers), and premium quality iron ore and steelmaking coal - 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.
Webcast of presentation:
A live webcast of the results presentation, starting at 9.00am
Note: Throughout this results announcement, '