Anglo American plc Production Report for the first quarter ended 31 March 2016
| Overview |
|
|
|
| |
Q1 2016 |
Q1 2015 |
% vs. Q1 2015 |
| Diamonds (Mct)(1) |
6.9 |
7.7 |
(10)% |
| Platinum (produced ounces) (koz)(2) |
567 |
544 |
4% |
| Copper (t)(3) (4) (5) |
146,500 |
146,800 |
- |
| Nickel (t)(6) |
11,200 |
6,700 |
67% |
| Iron ore – Kumba (Mt) |
8.9 |
12.2 |
(27)% |
| Iron ore – Minas-Rio (Mt)(7) |
3.3 |
1.2 |
185% |
| Export metallurgical coal (Mt) |
4.5 |
5.0 |
(9)% |
| Export thermal coal (Mt) |
7.7 |
8.7 |
(13)% |
Mark Cutifani, Anglo American Chief Executive, said “The Q1 2016 operating results are in line with the equivalent period of 2015 on a copper equivalent basis(8) and reflect the major restructuring programme under way and our ongoing efficiency and cost reduction strategy. They also demonstrate the market discipline we continue to show in our key markets, particularly diamonds and platinum, and are consistent with our restructuring plans as we focus on lower cost and higher margin assets. We are encouraged that the actions we have taken in diamonds are continuing to have a positive effect, while operational productivity continues on an upward trajectory. As a consequence of our solid progress, our production guidance for 2016 remains unchanged.”
- Diamond production decreased by 10% to 6.9 million carats, reflecting the decision to reduce production in response to trading conditions in 2015.
- Platinum production (expressed as metal in concentrate)(2) increased by 4% to 567,000 ounces driven primarily by increases at Amandelbult and Mogalakwena. Refined platinum production decreased by 52% due to a planned stocktake and a Section 54 safety stoppage at the Precious Metals Refinery (PMR) for 12 days.
- Copper production from the retained operations (excluding the AA Norte assets that were sold effective 1 September 2015) was in line with Q1 2015. Overall production decreased by 15%.
- Nickel production increased by 67% to 11,200 tonnes following the successful completion of the Barro Alto furnace rebuilds.
- Iron ore production from Kumba decreased by 27% to 8.9 million tonnes as Sishen is being transitioned to a lower cost pit configuration.
- Iron ore production from Minas-Rio increased to 3.3 million tonnes (wet basis) as the operation continues to ramp-up. Production increased by 3% vs. Q4 2015.
- Export metallurgical coal production decreased by 9% to 4.5 million tonnes due to planned longwall moves taking place at both Moranbah and Grasstree, partially offset by improved operational performance at Dawson and development coal production at Grosvenor.
- Export thermal coal production decreased by 13% to 7.7 million tonnes due to planned production cuts at Cerrejón as a result of market conditions and a change in mix at Landau to higher margin domestic sales.
(1) De Beers production on 100% basis;
(2) In keeping with industry benchmarks, production disclosure has been amended to reflect own mine production and purchases of metal in concentrate. Previous disclosure of own mine production and purchases of metal in concentrate was converted to equivalent refined production using standard smelting and refining recoveries;
(3) Copper production from the Copper business unit;
(4) Copper production shown on a contained metal basis;
(5) Q1 2015 Copper production normalised for the sale of Anglo Norte.
(6) Nickel production from the Nickel business unit;
(7) Wet basis;
(8) Copper equivalent production is normalised for the sale of Anglo American Norte and the Kimberly mine, and to reflect Snap Lake being placed on care and maintenance.
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