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Share Name Share Symbol Market Type Share ISIN Share Description
Anglo American Plc LSE:AAL London Ordinary Share GB00B1XZS820 ORD USD0.54945
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  -30.50 -0.95% 3,173.50 3,179.00 3,179.50 3,201.50 3,138.50 3,151.00 1,664,319 16:35:04
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Mining 30,728.0 1,303.6 512.5 5.5 43,259

Q4 2011 Production Report

26/01/2012 7:01am

UK Regulatory (RNS & others)


TIDMAAL

RNS Number : 1975W

Anglo American PLC

26 January 2012

 
 
26 January 2012 
Anglo American plc 
Production Report for the fourth quarter ended 31 December 
2011 
 
 

Overview

-- Iron ore production increased by 5% to 12.4 million tonnes mainly due to initial production from Kolomela mine and a continued improvement in performance at Amapa

o 9 Mtpa Kolomela mine commissioned five months ahead of schedule, with first shipment from Saldanha port in December 2011

o Production ramp up schedule for Kolomela mine of 4-5 million tonnes in 2012

-- Metallurgical Coal delivered record production from its Australian open cut metallurgical coal operations, resulting in a 4% increase in metallurgical coal production to 4.1 million tonnes

-- Export thermal coal production from South Africa and Colombia increased by 5% to 8.6 million tonnes

-- Copper production increased by 10% to 170,000 tonnes, and by 22% compared to Q3 2011, due to the commissioning of the Los Bronces expansion and higher ore grades at Los Bronces, Collahuasi and El Soldado

-- Nickel(1) production increased by 125% to 9,900 tonnes, and by 52% compared to Q3 2011, as production from Barro Alto continued to ramp up

-- Platinum refined production decreased by 19% to 710,000 ounces, mainly due to a greater number of safety stoppages resulting in lower mine production and increased processing of lower grade surface stockpiles. Equivalent refined platinum production declined by 9% to 583,200 ounces, due to a higher number of safety stoppages. This was offset by a strong performance at Mogalakwena's North pit and full ramp up at Unki mine

-- Diamond production decreased by 24% to 6.5 million carats. This reduction mainly reflects De Beers' deliberate focus on increasing waste stripping, as well as scheduled maintenance at the Debswana and DBCM operations in recognition of short-term global macro-economic volatility

This Production Report for the fourth quarter ended 31 December 2011 is unaudited.

Preliminary Results for the full year to 31 December 2011 will be announced on 17 February 2012.

(1) Nickel production from the Nickel business unit

 
 Iron Ore and Manganese             Q4       Q4     Q4 2011     Q3     Q4 2011 
------------------------------- 
                                   2011     2010      vs.      2011      vs. 
-----------------------  ------ 
                                                    Q4 2010            Q3 2011 
-----------------------  ------                    -------- 
 Iron ore                 000 t   12,427   11,808        5%   12,183        2% 
-----------------------  ------  -------  -------  --------  -------  -------- 
 Manganese ore            000 t      722      732      (1)%      808     (11)% 
-----------------------  ------  -------  -------  --------  -------  -------- 
 Manganese alloys         000 t       78       77        2%       78        1% 
-----------------------  ------  -------  -------  --------  -------  -------- 
 Attributable sales 
  volumes 
-----------------------  ------  -------  -------  --------  -------  -------- 
 RSA export iron ore      000 t    9,600    8,977        7%    9,167        5% 
-----------------------  ------  -------  -------  --------  -------  -------- 
 RSA domestic iron ore    000 t    1,242    1,722     (28)%    1,538     (19)% 
-----------------------  ------  -------  -------  --------  -------  -------- 
 South American export 
  iron ore                000 t    1,374    1,254       10%    1,452      (5)% 
-----------------------  ------  -------  -------  --------  -------  -------- 
 

Iron Ore - Excellent progress was made at Kolomela mine, which was brought into production ahead of schedule. The plant was successfully commissioned during 2011, delivering production of 1.2 Mt during the fourth quarter, bringing total production for 2011 to 1.5 Mt.Sishen mine's production decreased by 4% year on year to 9.8 Mt and by 6% quarter on quarter. Production from the mine's dense media separation plant was hampered by mining feedstock constraints. Sishen mine proactively supplemented the production by temporarily adjusting the jig plant ore quality in order to operate at above design capacity.

In Brazil, total production of 1.3 Mt was 15% higher compared to Q4 2010 and 3% higher than Q3 2011. The increase in Q4 production was driven by the Pellet Feed Production which was 32% higher compared to Q4 2010 (Q4 2011:495 kt vs. Q4 2010:376 kt) following a process improvement throughout 2011.

Manganese Ore - Production was lower than Q3 2011 as planned maintenance at Hotazel Manganese Mines (South Africa) and lower plant availability due to wet weather at GEMCO (Australia) impacted performance.

Manganese Alloys - Alloy production was in line with prior periods.

 
 Metallurgical Coal(1)            Q4      Q4     Q4 2011    Q3     Q4 2011 
------------------------------ 
                                 2011    2010      vs.     2011      vs. 
----------------------  ------ 
                                                 Q4 2010           Q3 2011 
----------------------  ------  ------  ------  --------  ------  -------- 
 Production 
----------------------  ------  ------  ------  --------  ------  -------- 
 Export metallurgical    000 t   4,061   3,892        4%   4,015        1% 
----------------------  ------  ------  ------  --------  ------  -------- 
 Thermal                 000 t   3,359   3,728     (10)%   3,978     (16)% 
----------------------  ------  ------  ------  --------  ------  -------- 
 Weighted average 
  achieved FOB prices 
----------------------  ------  ------  ------  --------  ------  -------- 
 Export metallurgical    US$/t     234     201       16%     267     (12)% 
----------------------  ------  ------  ------  --------  ------  -------- 
 Export thermal          US$/t     103      90       14%      98        5% 
----------------------  ------  ------  ------  --------  ------  -------- 
 Domestic thermal        US$/t      34      32        6%      35      (3)% 
----------------------  ------  ------  ------  --------  ------  -------- 
 Attributable sales 
  volumes 
----------------------  ------  ------  ------  --------  ------  -------- 
 Export metallurgical    000 t   4,010   3,704        8%   3,721        8% 
----------------------  ------  ------  ------  --------  ------  -------- 
 Export thermal          000 t   1,850   1,602       15%   1,878      (1)% 
----------------------  ------  ------  ------  --------  ------  -------- 
 Domestic thermal        000 t   1,853   2,250     (18)%   1,843        1% 
----------------------  ------  ------  ------  --------  ------  -------- 
 

(1) In 2011 the Group decided to retain Peace River Coal and to manage it within the Metallurgical Coal business unit. Information presented includes Peace River Coal and comparatives have been reclassified.

Metallurgical Coal - The Australian open cut metallurgical coal operations delivered a record quarterly performance for Q4 2011, as flood recovery actions initiated in the first half of 2011, increased production by 57% compared to Q4 2010. The increase was in part offset by unplanned interruption at the Moranbah underground operation.

 
 Thermal Coal                            Q4       Q4       Q4 2011       Q3     Q4 2011 
------------------------------------ 
                                        2011     2010        vs.        2011      vs. 
----------------------------  ------ 
                                                           Q4 2010              Q3 2011 
----------------------------  ------  -------  -------  -------------  ------  -------- 
 Production 
----------------------------  ------  -------  -------  -------------  ------  -------- 
 RSA thermal (non-Eskom)       000 t    5,846    5,885           (1)%   5,198       12% 
----------------------------  ------  -------  -------  -------------  ------  -------- 
 Eskom                         000 t    9,487    9,485              -   8,751        8% 
----------------------------  ------  -------  -------  -------------  ------  -------- 
 RSA metallurgical             000 t       84      103          (18)%      76       12% 
----------------------------  ------  -------  -------  -------------  ------  -------- 
 Colombia export thermal       000 t    2,753    2,316            19%   2,852      (3)% 
----------------------------  ------  -------  -------  -------------  ------  -------- 
 Weighted average 
  achieved FOB prices 
----------------------------  ------  -------  -------  -------------  ------  -------- 
 RSA export thermal            US$/t      107       84            27%     115      (7)% 
----------------------------  ------  -------  -------  -------------  ------  -------- 
 RSA domestic thermal          US$/t       20       20              -      22      (9)% 
----------------------------  ------  -------  -------  -------------  ------  -------- 
 Colombia export thermal       US$/t       98       79            24%     103      (5)% 
----------------------------  ------  -------  -------  -------------  ------  -------- 
 Attributable sales volumes 
----------------------------  ------  -------  -------  -------------  ------  -------- 
 RSA export thermal            000 t    5,146    4,358            18%   4,605       12% 
----------------------------  ------  -------  -------  -------------  ------  -------- 
 RSA domestic thermal          000 t   10,842   10,546             3%   9,901       10% 
----------------------------  ------  -------  -------  -------------  ------  -------- 
 Colombia export thermal       000 t    2,784    2,672             4%   2,901      (4)% 
----------------------------  ------  -------  -------  -------------  ------  -------- 
 

Thermal Coal - Production in South Africa was in line with Q4 2010, and improved compared to Q3 2011, mainly due to the recovery from industrial action which occurred in Q3 2011. Zibulo commenced commercial production in October 2011. Cerrejon, in Colombia, delivered a strong performance, benefiting from a reduction in weather related stoppages compared to 2010. This performance enabled Cerrejon to exceed, for the first time, its theoretical annual production capacity of 32 Mtpa.

Export sales volumes in South Africa increased 18% on Q4 2010 due to high stock level availability as well as optimised load out efficiencies on the operations complemented by improved Transnet Freight Rail performance.

 
 Copper                                Q4        Q4      Q4 2011     Q3      Q4 2011 
---------------------------------- 
                                      2011      2010       vs.      2011       vs. 
-----------------------  --------- 
                                                         Q4 2010             Q3 2011 
-----------------------  ---------                                --------  -------- 
 Copper                          t   170,000   154,400       10%   139,900       22% 
-----------------------  ---------  --------  --------  --------  --------  -------- 
 
 

Copper - Production of 170,000 tonnes increased by 10%, primarily due to the ramp-up of production from the expansion at Los Bronces following its commissioning in October and higher ore grades at Los Bronces, Collahuasi and El Soldado. The Los Bronces expansion produced 19,000 tonnes during the quarter, this was partly offset by production interruptions at Collahuasi owing to adverse weather conditions in December 2011 and a safety stoppage at Los Bronces after a fatal accident in September 2011.

As at the end of 2011, Anglo American had 138,400 tonnes of copper provisionally priced at 345 c/lb. Provisional pricing of copper sales resulted in a negative operating profit adjustment of $278 million for 2011, versus a positive operating profit adjustment of $195 million in the prior year.

 
 Nickel                                  Q4      Q4     Q4 2011    Q3     Q4 2011 
------------------------------------- 
                                        2011    2010      vs.     2011      vs. 
-------------  ---------------------- 
                                                        Q4 2010           Q3 2011 
-------------  ----------------------  ------  ------  --------  ------  -------- 
 Nickel                             t   9,900   4,400      125%   6,500       52% 
-------------  ----------------------  ------  ------  --------  ------  -------- 
 
 

Nickel - Production increased by 125% to 9,900 tonnes reflecting the contribution of Barro Alto which delivered 4,100 tonnes in Q4 2011. At Loma de Niquel, production was 13% higher due to improved equipment availability and increased reliability of power supply for the furnaces. Production at Codemin was 75% higher due to the relining of an electric furnace during Q4 2010.

 
 Platinum                         Q4      Q4     Q4 2011    Q3     Q4 2011 
------------------------------ 
                                 2011    2010      vs.     2011      vs. 
--------------------  -------- 
                                                 Q4 2010           Q3 2011 
--------------------  --------          ------ 
 Refined 
--------------------  --------  ------  ------  --------  ------  -------- 
 Platinum               000 oz     710     872     (19)%     647       10% 
--------------------  --------  ------  ------  --------  ------  -------- 
 Palladium              000 oz     393     503     (22)%     376        4% 
--------------------  --------  ------  ------  --------  ------  -------- 
 Rhodium                000 oz      97     111     (13)%      75       29% 
--------------------  --------  ------  ------  --------  ------  -------- 
 Nickel                      t   5,100   5,000        2%   4,900        4% 
--------------------  --------  ------  ------  --------  ------  -------- 
 Equivalent refined 
--------------------  --------  ------  ------  --------  ------  -------- 
 Platinum               000 oz     583     640      (9)%     667     (13)% 
--------------------  --------  ------  ------  --------  ------  -------- 
 

Platinum - Equivalent refined platinum production was 9% lower mainly due to a higher number of safety stoppages resulting in lower production from Tumela, Dishaba, Union and Rustenburg and increased processing of lower grade surface stockpiles. This was partly offset by a strong performance at Mogalakwena's North pit and ramp up at Unki mine. Mogalakwena's head grade and recoveries improved by 7% and 4% year on year respectively during the fourth quarter of 2011. Unki mine reached steady state during the fourth quarter of 2011, which is a year ahead of schedule. There were 32 safety stoppages during the fourth quarter of 2011 compared with 14 during the fourth quarter of 2010 and 16 during the third quarter of 2011. Refined production decreased by 19% year on year primarily due to lower mine output.

Palladium, Rhodium & Nickel - Refined production of palladium and rhodium decreased by 22% and 13% respectively, while nickel increased by 2%. These variances are due to a different source mix from operations and different pipeline processing times for each metal.

 
 Diamonds                            Q4       Q4     Q4 2011     Q3     Q4 2011 
-------------------------------- 
                                    2011     2010      vs.      2011      vs. 
------------------  ------------ 
                                                     Q4 2010            Q3 2011 
------------------  ------------ 
 Diamonds             000 carats    6,489    8,532     (24)%    9,305     (30)% 
------------------  ------------  -------  -------  --------  -------  -------- 
 
 

Diamonds - Carats recovered decreased 24% to 6.5 million carats, and 30% compared to Q3 2011, primarily reflecting a deliberate focus by De Beers to increase waste stripping, as well as scheduled maintenance at the Debswana and DBCM operations in recognition of short-term global macro-economic volatility.

 
 Other Mining and              Q4        Q4      Q4 2011     Q3      Q4 2011 
  Industrial - Core(1) 
-------------------------- 
                              2011      2010       vs.      2011       vs. 
-------------------  ----- 
                                                 Q4 2010             Q3 2011 
-------------------  ----- 
 Phosphates              t   274,900   270,900        1%   284,500      (3)% 
-------------------  -----  --------  --------  --------  --------  -------- 
 Niobium                 t     1,000     1,200     (17)%     1,100      (9)% 
-------------------  -----  --------  --------  --------  --------  -------- 
 

(1) Assets originally identified for divestment as part of the restructuring programme announced in October 2009, are managed as a separate business unit, Other Mining and Industrial. In 2011 the Group decided to retain Copebras and Catalao.

Phosphates - Phosphates production was in line with Q4 2010, however, the production mix was varied in response to changes in market demand. Production decreased by 3% to 274,900 tonnes compared to Q3 2011, reflecting softening demand.

Niobium - Niobium production decreased by 17% as a result of the significant change in production profile at Boa Vista, as the mine advanced further into the transition ore between weathered material and unoxidised ore, resulting in lower niobium recoveries. Niobium ore grades from the Copebras mine were also lower leading to a decreasing niobium output from the tailings plant.

Production summary

The figures below include the entire output of consolidated entities and the Group's attributable share of joint ventures, joint arrangements and associates where applicable, except for De Beers which is quoted on a 100% basis.

 
                                                                                                   % Change 
                             ---------------------------------------------------------------  ------------------ 
                                                                                               Q4 2011   Q4 2011 
                                      Q4           Q3           Q2           Q1           Q4       vs.       vs. 
                                    2011         2011         2011         2011         2010   Q3 2011   Q4 2010 
---------------------------  -----------  -----------  -----------  -----------  -----------  --------  -------- 
 Iron Ore and Manganese 
  segment (tonnes) 
 Iron ore                     12,427,300   12,182,900   11,534,100    9,944,800   11,807,700        2%        5% 
 Manganese ore(1)                722,500      807,600      716,100      540,600      731,600     (11)%      (1)% 
 Manganese alloys(1)(2)           78,000       77,600       76,100       68,800       76,800        1%        2% 
---------------------------  -----------  -----------  -----------  -----------  -----------  --------  -------- 
 
 Metallurgical 
  Coal segment (tonnes)(3) 
 Export metallurgical          4,060,600    4,015,000    3,949,400    2,164,700    3,891,500        1%        4% 
 Thermal                       3,358,700    3,978,000    3,087,500    3,002,300    3,727,500     (16)%     (10)% 
---------------------------  -----------  -----------  -----------  -----------  -----------  --------  -------- 
 
 Thermal Coal segment 
  (tonnes) 
 RSA thermal (non-Eskom)       5,846,000    5,198,400    5,264,400    5,079,300    5,885,000       12%      (1)% 
 Eskom                         9,487,000    8,751,400    8,782,600    8,275,000    9,484,800        8%         - 
 RSA metallurgical                84,500       75,600       83,800       79,500      103,000       12%     (18)% 
 Colombia export 
  thermal                      2,752,700    2,851,800    2,537,700    2,609,500    2,315,700      (3)%       19% 
 
 Copper segment 
  (tonnes)(4)                    170,000      139,900      150,300      138,800      154,400       22%       10% 
---------------------------  -----------  -----------  -----------  -----------  -----------  --------  -------- 
 
 Nickel segment 
  (tonnes)(5)                      9,900        6,500        6,600        6,100        4,400       52%      125% 
---------------------------  -----------  -----------  -----------  -----------  -----------  --------  -------- 
 
 Platinum segment 
 Platinum (troy 
  ounces)                        710,000      646,500      640,700      532,900      872,400       10%     (19)% 
 Palladium (troy 
  ounces)                        392,700      376,000      373,800      288,200      502,600        4%     (22)% 
 Rhodium (troy 
  ounces)                         96,800       75,200       79,900       85,700      111,400       29%     (13)% 
 Nickel (tonnes)                   5,100        4,900        5,500        4,800        5,000        4%        2% 
 Equivalent refined 
 Platinum (troy 
  ounces)                        583,200      666,800      592,500      567,600      640,100     (13)%      (9)% 
---------------------------  -----------  -----------  -----------  -----------  -----------  --------  -------- 
 
 Diamonds segment 
  (De Beers) (diamonds 
  recovered - carats) 
 Total diamonds 
  production for 
  De Beers                     6,489,000    9,305,000    8,138,000    7,396,000    8,532,000     (30)%     (24)% 
 Anglo American's 
  share of diamonds 
  production for 
  De Beers                     2,920,000    4,187,000    3,662,000    3,328,000    3,839,000     (30)%     (24)% 
 
 Other Mining and 
  Industrial segment 
  (tonnes)(6) 
 Phosphates                      274,900      284,500      260,700      240,800      270,900      (3)%        1% 
 Niobium                           1,000        1,100          900          900        1,200      (9)%     (17)% 
 South Africa Steel 
  Products                       163,100      158,000      183,100      173,200      151,000        3%        8% 
---------------------------  -----------  -----------  -----------  -----------  -----------  --------  -------- 
 
 Coal production 
  by commodity (tonnes) 
 Metallurgical                 4,145,100    4,090,600    4,033,200    2,244,200    3,994,500        1%        4% 
 Thermal                      11,957,400   12,028,200   10,889,600   10,691,100   11,928,200      (1)%         - 
 Eskom                         9,487,000    8,751,400    8,782,600    8,275,000    9,484,800        8%         - 
---------------------------  -----------  -----------  -----------  -----------  -----------  --------  -------- 
 
   (1)    Saleable production. 
   (2)    Production includes Medium Carbon Ferro Manganese. 
   (3)    Includes Peace River Coal which in 2011 was reclassified from Other Mining and Industrial to Metallurgical Coal to align with internal management reporting. Comparatives have been reclassified to align with current year presentation. 
   (4)    Excludes Platinum and Black Mountain mine copper production. 
   (5)    Excludes Platinum nickel production. 
   (6)    Excludes Tarmac. 

Exploration and evaluation expenditure

Anglo American continued to progress with its strong exploration and evaluation programme during 2011. Exploration and evaluation operating expenditure for 2011 across all business units was $539 million, an increase of 51% compared to 2010. This was driven primarily by the advancement of prioritised expansion project studies in Australian Metallurgical Coal, Copper and Nickel, including Quellaveco, Michiquillay, Pebble and Jacare, and increased exploration expenditure in Metallurgical Coal and Copper.

Production figures are sometimes more precise than the rounded numbers shown in this report. The percentage change will reflect the percentage change using the unrounded production figures shown in this report.

Forward looking statements:

This contains certain forward looking statements which involve risk and uncertainty because they relate to events and depend on circumstances that occur in the future. There are a number of factors that could cause actual results or developments to differ materially from those expressed or implied by these forward looking statements.

For further information, please contact:

 
 Media                       Investors 
 UK                          UK 
  James Wyatt-Tilby           Leng Lau 
  Tel: +44 (0)20 7968 8759    Tel: +44 (0)20 7968 8540 
 Emily Blyth                 Caroline Crampton (nee 
  Tel: +44 (0)20 7968 8481    Metcalfe) 
                              Tel: +44 (0)20 7968 2192 
 South Africa                Leisha Wemyss 
  Pranill Ramchander          Tel: +44 (0)20 7968 8607 
  Tel: +27 (0)11 638 2592 
 

Notes to editors:

Anglo American is one of the world's largest mining companies, is headquartered in the UK and listed on the London and Johannesburg stock exchanges. Anglo American's portfolio of mining businesses spans bulk commodities - iron ore and manganese, metallurgical coal and thermal coal; base metals - copper and nickel; and precious metals and minerals - in which it is a global leader in both platinum and diamonds. Anglo American is committed to the highest standards of safety and responsibility across all its businesses and geographies and to making a sustainable difference in the development of the communities around its operations. The company's mining operations, extensive pipeline of growth projects and exploration activities span southern Africa, South America, Australia, North America, Asia and Europe.

www.angloamerican.com

This information is provided by RNS

The company news service from the London Stock Exchange

END

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