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HALF YEAR FINANCIAL REPORT

for the six months ended 30 June 2023

27 July 2023

Anglo American Interim Results 2023

Underlying EBITDA of $5.1 billion reflects macro headwinds, ahead of production step-up in second half of year

Financial highlights for the six months ended 30 June 2023

• Underlying EBITDA* of $5.1 billion, a 41% decrease, largely due to weaker product prices

• Profit attributable to equity shareholders of $1.3 billion

• Net debt* of $8.8 billion (0.9 x annualised underlying EBITDA): investment in value-adding growth amid weaker prices

◦ Targeted reduction of $0.3 billion in 2023 capital expenditure

• Quellaveco ramping up strongly and on track to produce 310-350 kt of copper in 2023

• $0.7 billion dividend for H1 2023, equal to $0.55 per share, consistent with our 40% payout policy.

Duncan Wanblad, Chief Executive of Anglo American, said: "Anglo American's portfolio quality, product and geographic diversification together with strong organic growth optionality over the next decade provide positive differentiation and position our business to capitalise on highly attractive structural supply and demand trends. Our unwavering focus is on driving consistent, competitive performance across our operations - which starts with the safety and health of our employees.

"We have made further progress on safety, with our overall injury rates decreasing markedly in the first half. However, I am sad to report that we lost one colleague in a machinery incident at our Kumba business in February. None of us will rest until we achieve and sustain zero harm at Anglo American.

"Macro headwinds - principally, weaker prices for our products and input cost inflation - certainly weighed on our first half financial performance. We are on track to deliver on our full year production guidance, which includes a significant anticipated step-up in volumes in the second half. Our focus on operational stability and cost control are our key margin levers and we also expect to deliver annual efficiencies of $0.5 billion from across our full range of business support activities.

"Underlying EBITDA of $5.1 billion at a 41% Mining EBITDA margin* reflects a 19% lower product basket price and a 1% unit cost increase, partially offset by a 10% volume increase compared with the first half of 2022. Our commitment to capital discipline and to a strong balance sheet makes us more resilient to the external environment and supports our range of options for value-adding organic growth. As we drive greater effectiveness across our organisation, so we are also ensuring capital efficiency, with an expected $0.3 billion reduction in growth capital expenditure guidance in the current year. Net debt increasing to $8.8 billion, less than 1 x annualised underlying EBITDA, reflects the growth investments we are making through the cycle in line with our belief in the strong long term fundamentals. Our $0.7 billion proposed dividend for H1 2023 of $0.55 per share is in line with our 40% payout policy.

"There is no doubt that while the nearer term macro picture presents challenges, the longer term demand outlook for future-enabling metals and minerals is ever more compelling. As most major economies accelerate their decarbonisation programmes and as the global population grows by up to 2 billion people over the next 25 years, with an associated need for higher living standards, our objective is to grow the value of our business into that demand."

Terms with this symbol * are defined as Alternative Performance Measures (APMs). For more information, refer to page 77.

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 5-32, our performance for the first four pillars is set out below:

⁽¹⁾    Sustainability performance indicators for the six months ended 30 June 2023 and the prior period are not externally assured.

⁽²⁾    Data for current and prior period is to 31 May 2023 and 31 May 2022, respectively. Anglo American is on track to meet its target of a 30% reduction in GHG emissions by 2030, based on the 2016 baseline, and despite the expected increase in 2023 as production volumes increase from Quellaveco, as outlined on page 24 of our Climate Change Report 2022. Fresh water withdrawal data can vary year on year due to seasonal variations in hydrological cycles, production profiles and operational requirements. The fresh water savings projects and initiatives, as detailed in our Sustainability Report 2022, are on track to achieve our 2030 water reduction targets, compared with the 2015 baseline.

⁽³⁾    Current and prior period data presented is at 31 December 2022 and 2021, 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 Socio-political commentary on page 4.

⁽⁴⁾    Jobs supported since 2018, in line with the Sustainable Mining Plan Livelihoods stretch goal. Current period data is to 30 June 2023 and prior period data is to 31 December 2022.

⁽⁵⁾    Local procurement spend relates to spend within the country where an operation is located. The basis of calculation reflects the Group's financial accounting consolidation; i.e. 100% of subsidiaries and a proportionate share of joint operations, based on Anglo American's shareholding. The figure for 30 June 2022 has been restated (previously $6.1 bn) due to a calculation error.

⁽⁶⁾    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, net of 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.

Safety

At Anglo American, we are unconditional about safety and strive continuously to create a workplace where every colleague arrives home safe and well at the end of their working day. 'Always safe' is our safety vision and safety is our number one value.

Following the safety reset and calls to action completed across the Group in the second half of 2022, we have made solid progress in our safety journey, recording our best ever total recordable injury frequency rate (TRIFR) of 1.92 (30 June 2022: 2.36). While encouraged by this improvement, we were deeply saddened to lose a colleague in a machinery incident at our Kumba Iron Ore business in South Africa in February. We are also investigating a recent aviation fatality in Angola related to our exploration programme.

Across Anglo American we are continuing to implement our targeted safety strategy, investing in systems and technology, standards, and training our people. A key focus has been an increase in what we call Visible Felt Leadership (VFL). VFL involves connecting operational leaders on a one to one or small group basis around a task or activity to ensure that it is done safely. This active, practical and highly visible expression of our Values is helping to build trust with our workforce, fostering understanding and improvements in safety performance, as well as encouraging our employees and contractors to feel safe to speak up about concerns related to safety.

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 feel valued and respected as a critical contributor to everyone's safety. We have, therefore, launched a new Contractor Performance Management framework which has been designed as an end to end approach to managing our contractors. It incorporates people, processes and systems and provides the foundation for safe and stable production by creating a psychologically and physically safe, healthy, and productive work environment for employees, contractors, and suppliers.

Health

Our many years of work with employees and host communities on HIV/AIDS and TB, and over three years on Covid-19, have positioned us to extend our learnings from managing communicable diseases to
non-communicable diseases. A major focus in 2022, that has continued into 2023, was to develop bespoke programmes to address the main health risks that employees face, focusing on the leading causes of preventable deaths generally arising outside of work, such as lack of exercise, smoking and poor diet. We expect these programmes will drive improvements not only in personal well-being, but also engagement and productivity.

In the first half of 2023, there were no reported new cases of occupational disease (30 June 2022: 0). In a bid to minimise the potential for workforce exposure to hazards, all businesses have identified detailed exposure reduction pathways which will continue to be implemented in the second half of the year. Reducing exposure to noise, which remains our single greatest occupational health risk, is a significant challenge. A number of our businesses require technological shifts to continue to reduce noise exposure, including further mine, processing and equipment modernisation and the use of equipment attenuation technology.

Environment

Our Sustainable Mining Plan includes commitments to be a leader in environmental stewardship. By 2030, we aim to reduce greenhouse gas (GHG) emissions (Scopes 1 and 2) by 30%; improve energy efficiency by 30%; achieve a 50% reduction in fresh water abstraction in water scarce areas; and deliver net-positive impacts in biodiversity wherever we operate.

In addition to our GHG emissions reduction aims, we also have a target to be carbon neutral across our operations by 2040, and an ambition to halve our Scope 3 emissions, also by 2040. We continue to make encouraging progress, with Scope 1 and 2 GHG emissions broadly in line with the prior period, despite the 10% increase in production volumes. In Peru, our Quellaveco copper mine was supplied with 100% renewable electricity supply from April 2023, completing the transition for all our South American operations. With our Australian operations moving to renewable supply from 2025, we are on target to be drawing approximately 60% of our global grid supply from renewables from 2025. In southern Africa, where we are developing a regional renewable energy ecosystem through our partnership with EDF Renewables, known as Envusa Energy, several off site and on site renewable energy projects are progressing through feasibility studies and are targeted for construction to start in the second half of 2023.

Methane emissions from our Steelmaking Coal operations represent the largest component of our Scope 1 emissions and we continue to explore ways to manage and abate these emissions. Our ventilation air methane abatement engineering study using regenerative thermal oxidation has now progressed to the pre-feasibility stage. We actively participate in a number of industry methane management forums and are supporting in a practical way the UN Environmental Programme's International Methane Emissions Observatory (IMEO) measurement trials this year.

As part of the our ambition to reduce our Scope 3 emissions by 50% by 2040, we are focusing on hard-to-abate sectors such as steel - from which most of our value chain emissions derive. We are joining forces with steelmakers in Europe and Asia to research efficient feed materials - capitalising on the premium physical and chemical qualities of our minerals, including iron ore pellets and lump iron ore. These premium products are suited for use in the direct reduced iron (DRI) process, a technically proven and significantly less carbon intensive steel production method. In April, we signed an agreement with H2 Green Steel, a Swedish hydrogen and steel producer, to explore ways to use our premium iron ore as feedstock for their DRI production process at their Boden plant in Sweden.

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 technologies to help us do that. Our combined technologies of coarse particle recovery (CPR) and hydraulic dewatered stacking (HDS) are demonstrating a new way to safely dispose of mining by-products and accelerate our progress towards ending wet tailings storage, while also increasing production and reducing energy consumption. Our El Soldado copper operation in Chile has been piloting a CPR unit since 2021, and successfully handed over the unit to the operation in January 2023. The pilot plant exceeded expectations in terms of achieving significantly lower energy and fresh water usage per unit of copper produced. Additional CPR units are being constructed and commissioned across the Group, including at Mogalakwena North (PGMs) and Quellaveco (Copper). El Soldado also completed its initial HDS testing phase in April, with the pilot project scheduled to continue until the end of the year.

Socio-political

We continue working to strengthen and broaden our social performance competencies through embedding the Social Way 3.0 (launched in 2020) across Anglo American. More than 28,500 hours have been committed to Social Way 3.0 training since 2020. This includes orientation sessions for leaders, completing Social Way Foundation Training, as well as cross-functional Social Way Foundation Training for non-social performance teams, at all sites, businesses and relevant functions.

While we did not meet our ambitious goal of implementation of the Social Way 3.0 at all sites by the end of 2022, we continued to make significant progress and recognise the very much higher standards (the highest that we are aware of across our industry) required of this third version of our social management system. The programme is critical to underpinning many of our ambitious 2030 Sustainable Mining Plan targets, demonstrating our commitment to partnering with host communities and governments.

Since the launch of our Sustainable Mining Plan, 137,000 off site jobs had been supported through socio-economic development programmes by the end of June 2023, including local procurement, enterprise and supplier development initiatives, training, mentoring and capacity development, loan funding to small businesses, agriculture programmes, and collaborative regional development initiatives.

The success of our business drives tax revenues for host communities, in addition to the significant royalty and mining tax payments made and our broader economic contribution to other stakeholders. Total taxes and royalties borne and taxes collected amounted to $2,511 million, a 28% decrease compared with the first half of 2022, reflecting lower profit before tax and revenues.

People

Tightly linked to our safety imperative and our Values, we strive to create a workplace that places people even more 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.

We continue to make progress towards reaching our goal of 33% female representation by the end of 2023 at all management levels, across the business. We have set a similar target for 33% of our Executive Leadership Team and those reporting to them to be women by the end of 2023. In the first half of the year we were recognised for our work on reducing gender inequalities in the workplace by being included in The Times' Top 50 Employers for Gender Equality Index for the second year in a row; both Anglo American plc and our PGMs business, Anglo American Platinum, were also included in the Bloomberg Gender Equality Index in 2023. Anglo American was once again included in the Top Employer listings in both South Africa and the UK. In January 2023, Anglo American became the first mining company, and the third company in the world, to secure a global living wage accreditation from the Fair Wage Network, formally recognising our status as a committed living wage employer across the Group.

Operational and financial review of Group results for the six months ended 30 June 2023

Operational performance

Production volumes increased by 10% on a copper equivalent basis, primarily driven by the ramp-up of our new Quellaveco copper mine in Peru, strong operational performances at our iron ore assets in Brazil and South Africa, as well as higher production from our steelmaking coal underground and open cut operations in Australia. Lower grades impacted production at Los Bronces and Collahuasi (Copper Chile), as well as Mogalakwena (PGMs) and Nickel. Production was marginally lower at De Beers as the Venetia mine transitions from open pit to underground operations.

Total copper production of 387,200 tonnes increased by 42% (30 June 2022: 273,400 tonnes), primarily driven
by volumes from Quellaveco (Copper Peru) which progressively ramped up to deliver 137,800 tonnes of production, and reached commercial production levels in June. Copper Chile's production of 249,400 tonnes
was 9% lower (30 June 2022: 273,400 tonnes), principally driven by Los Bronces, where production decreased
by 13% to 112,500 tonnes (30 June 2022: 129,700 tonnes) due to lower grades, coupled with unfavourable ore characteristics, including higher ore hardness. Planned lower grades at Collahuasi resulted in a 10% decrease
in attributable production to 114,400 tonnes (30 June 2022: 127,800 tonnes).

Nickel production was in line with the prior period at 19,600 tonnes (30 June 2022: 19,600 tonnes), reflecting a strong operational performance largely offset by lower grades.

Total PGM production decreased by 7% to 1,844,300 ounces (30 June 2022: 1,987,500 ounces), principally due to lower grade at Mogalakwena and the impact of planned infrastructure closures at Amandelbult at the end of 2022.

De Beers' rough diamond production was marginally lower than the prior period at 16.5 million carats (30 June 2022: 16.9 million carats), reflecting a strong operational performance, despite the planned reduction in South Africa as the Venetia open pit transitions to underground operations.

Iron ore production increased by 12% to 30.7 Mt (30 June 2022: 27.5 Mt). Minas-Rio production increased by 22% to 12.0 Mt (30 June 2022: 9.8 Mt) due to a strong operational performance and timing of maintenance. At Kumba, production increased by 6% to 18.7 Mt (30 June 2022: 17.8 Mt), as Kolomela recovered from operating challenges in the prior year.

Steelmaking coal production increased by 42% to 6.9 Mt (30 June 2022: 4.8 Mt), reflecting the benefit of all three underground longwall operations running, with particularly high production from Moranbah, which underwent an extended longwall move during the first half of 2022, as well as increased production from the open cut operations that were impacted by unseasonal wet weather in 2022.

Manganese ore production was in line with the prior period at 1.8 Mt (30 June 2022: 1.8 Mt).

Group copper equivalent unit costs increased by 1% as inflationary pressures, particularly labour and electricity, were offset by the benefit of favourable exchange rates and production from Quellaveco which started operations in July 2022. Excluding the favourable impact of foreign exchange, unit costs increased by 7%.

Financial performance

Anglo American's profit attributable to equity shareholders decreased to $1.3 billion (30 June 2022: $3.7 billion). Underlying earnings were $1.7 billion (30 June 2022: $3.8 billion), while operating profit was $3.0 billion
(30 June 2022: $6.7 billion).

Underlying EBITDA*

Group underlying EBITDA decreased by $3.6 billion to $5.1 billion (30 June 2022: $8.7 billion) due to lower commodity prices and global cost inflationary pressures, which increased our input costs. As a result, the Group Mining EBITDA margin* of 41% was lower than the prior period (30 June 2022: 52%). A reconciliation of 'Profit before net finance costs and tax', the closest equivalent IFRS measure to underlying EBITDA, is provided within note 3 to the Condensed financial statements.

Underlying EBITDA* by segment

Underlying EBITDA* reconciliation for the six months ended 30 June 2022 to six months ended 30 June 2023

The reconciliation of underlying EBITDA from $8.7 billion in 2022 to $5.1 billion in 2023 shows the major controllable factors (e.g. cost and volume), as well as those outside of management control (e.g. price, foreign exchange and inflation), that drive the Group's performance.

Price

Average market prices for the Group's basket of products decreased by 19% compared with the first half of 2022, reducing underlying EBITDA by $4.5 billion. The PGMs basket price decreased by 29%, primarily driven by rhodium and palladium, which decreased by 47% and 29% respectively. Alongside this, the realised price for hard coking coal (HCC) reduced by 31% and the iron ore price fell by 22%.

Foreign exchange

Favourable foreign exchange benefited underlying EBITDA by $0.8 billion, primarily reflecting the impact of the weaker South African rand.

Inflation

The Group's weighted average CPI for the first half of the year was 6.3% as inflation continued to increase in all regions, albeit slowing somewhat from the 7.2% in the first six months of 2022. The impact of CPI inflation on costs reduced underlying EBITDA by $0.5 billion (30 June 2022: $0.4 billion).

Net cost and volume

The net impact of cost and volume was a $0.6 billion increase in underlying EBITDA, largely driven by the successful ramp-up of Quellaveco. Steelmaking Coal benefited from all three underground longwall operations running as well as increased performance from the open cut operations that were impacted by unseasonal wet weather in the first half of 2022. Sales improved at Minas-Rio on the back of a strong mining and plant performance. These were partly offset by lower sales volumes at PGMs as refined production was impacted by the Polokwane smelter ramp-up, planned asset integrity work, and deferred production due to Eskom load-curtailment. Copper Chile sales were affected as lower grades and ore hardness impacted production. In addition to these volume impacts, above-CPI inflationary pressures contributed to higher costs across the Group.

Underlying earnings*

Group underlying earnings decreased to $1.7 billion (30 June 2022: $3.8 billion), driven by the lower underlying EBITDA, partly offset by a corresponding decrease in income tax expense and earnings attributable to non‑controlling interests.

Reconciliation from underlying EBITDA* to underlying earnings*

Depreciation and amortization

Depreciation and amortisation increased by 3% to $1.3 billion (30 June 2022: $1.2 billion), reflecting the increased production alongside a higher carrying value of our Steelmaking Coal assets due to the impairment reversal recognised in 2022, and Quellaveco commencing commercial production in June 2023.

Net finance costs and income tax expense

Net finance costs, before special items and remeasurements, were in line with the prior period at $0.2 billion (30 June 2022: $0.2 billion).

The underlying effective tax rate was higher than the prior period at 37.0% (30 June 2022: 32.6%), reflecting the impact of the relative levels of profits arising in the Group's operating jurisdictions. The tax charge for the period, before special items and remeasurements, was $1.2 billion (30 June 2022: $2.2 billion), reflecting lower profit before tax.

As a result of the expected enactment of the Chile Mining Royalty Bill during the second half of 2023, the underlying effective tax rate for the year ended 31 December 2023 is expected to increase by about 1% above the previously guided range of 35-37%. The Group continues to evaluate the impact of this new regime on the longer term underlying effective tax rate guidance of 33%-37%.

Non-controlling interests

The share of underlying earnings attributable to non-controlling interests of $0.6 billion (30 June 2022: $1.1 billion) principally relates to minority shareholdings in Kumba (Iron Ore), Copper and PGMs.

Special items and remeasurements

Special items and remeasurements (after tax and non-controlling interests) are a net charge of $0.4 billion
(30 June 2022: net charge of $0.1 billion), principally relating to the impairment of $0.4 billion recognised in
Barro Alto (Nickel).

Full details of the special items and remeasurements recorded are included in note 9 to the Condensed financial statements.

Net debt*

⁽¹⁾Includes cash outflows of $196 million (30 June 2022: inflows of $57 million), relating to interest payments on derivatives hedging net debt, which are included in cash flows from derivatives related to financing activities.

⁽²⁾Growth capital expenditure and other includes $59 million (30 June 2022: $39 million) of expenditure on non-current intangible assets.

⁽³⁾Includes the purchase of shares (including for employee share schemes) of $187 million; Mitsubishi's share of Quellaveco capital expenditure of $83 million; other movements in lease liabilities (excluding variable vessel leases) increasing net debt by $89 million; and contingent and deferred consideration paid in respect of acquisitions completed in previous years of $124 million. 2022 includes the purchase of shares under the 2021 buyback programme of $186 million; the purchase of shares for other purposes (including for employee share schemes) of $252 million; Mitsubishi's share of Quellaveco capital expenditure of $260 million; other movements in lease liabilities (excluding variable vessel leases) decreasing net debt by $65 million; and contingent and deferred consideration paid in respect of acquisitions completed in previous years of $157 million.

Net debt (including related derivatives) of $8.8 billion has increased by $1.9 billion since 31 December 2022, which includes a working capital cash outflow of $0.7 billion, primarily due to a reduction in payables. The Group generated sustaining attributable free cash flow of $0.2 billion, used in the funding of growth capital expenditure of $0.6 billion and dividends paid to Anglo American plc shareholders of $0.9 billion. Net debt at 30 June 2023 represented gearing (net debt to total capital) of 21% (31 December 2022: 17%).

Cash flow

Cash flows from operations

Cash flows from operations decreased to $3.9 billion (30 June 2022: $7.0 billion), reflecting a reduction
in underlying EBITDA from subsidiaries and joint operations, and a working capital build of $0.7 billion
(30 June 2022: build of $1.0 billion). Payables reduced by $1.0 billion, largely driven by the impact of lower prices
on the valuation of the Purchase of Concentrate (POC) creditor and customer prepayment at PGMs. The inventory increase of $0.3 billion was driven by product mix and weaker demand for diamonds. This was partly offset by
a reduction in receivables of $0.6 billion, driven by price and volume impacts at Copper Chile and timing impacts
at Steelmaking Coal.

Capital expenditure*

Capital expenditure increased to $2.7 billion (30 June 2022: $2.6 billion), due to additional sustaining capital expenditure.

Sustaining capital expenditure increased to $2.0 billion (30 June 2022: $1.8 billion) driven by additional stay-in-business expenditure for Copper Chile related to the Collahuasi desalination plant project, planned higher stay-in-business expenditure at PGMs, and Quellaveco stripping and development.

Growth capital expenditure decreased to $0.6 billion (30 June 2022: $0.8 billion) as the Quellaveco project was successfully delivered in July 2022, and reached commercial production levels in June 2023.

Total capital expenditure for 2023 is expected to be c.$6.0 billion (previously $6.0-6.5 billion).

Attributable free cash flow*

The Group's attributable free cash flow decreased to an outflow of $0.5 billion (30 June 2022: inflow of $1.6 billion) due to lower cash flows from operations of $3.9 billion (30 June 2022: $7.0 billion) and increased capital expenditure of $2.7 billion (30 June 2022: $2.6 billion). This was partially offset by decreased tax payments of $1.1 billion (30 June 2022: $1.8 billion) and a reduction in dividends paid to non-controlling interests of $0.4 billion (30 June 2022: $1.1 billion).

Shareholder returns

In line with the Group's established dividend policy to pay out 40% of underlying earnings, the Board has
approved a dividend of $0.55 per share (30 June 2022: $1.24 ordinary dividend per share), equivalent to
$0.7 billion (30 June 2022: $1.5 billion including special dividend).

Disposals

Cash received of $207 million in respect of disposals for the period ended 30 June 2023 principally relates to the final settlement of the deferred consideration balance relating to the sale of the Rustenburg operations (PGMs) completed in November 2016.

Balance sheet

Net assets decreased by $0.7 billion to $33.2 billion (31 December 2022: $34.0 billion), reflecting dividend payments to Company shareholders and non-controlling interests as well as foreign exchange movements, partially offset by the profit in the period.

Attributable ROCE*

Attributable ROCE decreased to 18% (30 June 2022: 36%). Annualised attributable underlying EBIT decreased to $5.9 billion (30 June 2022: $11.5 billion), reflecting the impact of lower realised prices achieved for the Group's products and higher input costs as inflation remained high in all regions. Average attributable capital employed increased to $33.1 billion (30 June 2022: $32.0 billion), primarily due to capital expenditure, largely at Quellaveco and the Collahuasi desalination project (Copper), partly offset by the reduction in capital employed following the Crop Nutrients impairment recorded at 31 December 2022.

Liquidity and funding

Group liquidity stands at $14.9 billion (31 December 2022: $16.1 billion), comprising $7.8 billion of cash and cash equivalents (31 December 2022: $8.4 billion) and $7.1 billion of undrawn committed facilities (31 December 2022: $7.7 billion).

During the first half of 2023, the Group issued $2.0 billion of bond debt. In March 2023, the Group issued €500 million 4.5% Senior Notes due 2028, and €500 million 5.0% Senior Notes due 2031 and, in May 2023, $900 million 5.5% Senior Notes due 2033.

The weighted average maturity on the Group's bonds was broadly in line with the prior year at 7.8 years (31 December 2022: 7.7 years).

The Group has an undrawn $4.7 billion revolving credit facility due to mature in March 2025.

The Group received an upgrade to BBB+ (stable outlook) in March 2023 from Fitch Ratings.

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 and that cater to major global consumer demand trends.

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:

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:

Technology projects⁽¹⁾

The Group plans to invest c.$0.1-0.3 billion⁽²⁾ per year on projects to support the FutureSmart Mining^TM programme and the delivery of Anglo American's Sustainable Mining Plan targets, particularly those that relate to safety, energy, emissions and water, including the following innovative technology projects. For more information on the progress of these initiatives, refer to slide 73 of the HY2023 presentation. Furthermore, the Group plans to continue investing in digital projects as part of the FutureSmart Mining^TM programme. For more information, please refer to our Integrated Annual Report 2022, page 41.

⁽¹⁾Expenditure relating to technology projects is included within operating expenditure, or if it meets the accounting criteria for capitalisation, within Growth capital expenditure.

⁽²⁾ Technology and innovation capex is estimated to be between $0.1-0.3 billion per year (previously $0.2-0.5 billion per year), including capex on the ZEHS programmes. The lower guidance reflects equity accounting of the SA Regional Renewable Energy Ecosystem joint venture, Envusa Energy.

The Board

Changes during 2023 to the composition of the Board are set out below.

As announced on 28 February 2023, Magali Anderson joined the Board as a non-executive director and member of the Board's Sustainability Committee on 1 April 2023.

Following Magali's appointment, four (40%) of the 10 directors on the Board are female and two (20%) are people of colour.

As announced on 31 May 2023, Stephen Pearce, who has served as Finance Director since April 2017, has indicated his intention to retire from the Group. As announced on 27 July 2023, John Heasley, currently CFO of The Weir Group PLC, will succeed Stephen Pearce as Finance Director.

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/board

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 and natural catastrophe risks

- Economic environment including product prices

- Cyber security

- Geo-political

- Community stakeholder conflict

- Power

- Safety

- Climate change

- Corruption

- Regulatory and permitting

- Water

- Pandemic

- Operational performance

- 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 14-28. Details of relevant tax matters are included in note 6 to the Condensed financial statements.

The principal risks and uncertainties facing the Group at the 2022 year end are set out in detail in the strategic report section of the Integrated Annual Report 2022 on the Group's website www.angloamerican.com

Copper

Financial and operational metrics

⁽¹⁾Excludes 178 kt third-party sales (30 June 2022: 216 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 1% to 301 c/lb (30 June 2022: 304 c/lb).

⁽⁸⁾Figures on a 100% basis (Group's share: 60%). Included in capex is the project capex which represents the Group's share after deducting direct funding from non‑controlling interests. In H1 2023, the Group's share of project capex was $111 million (on a 100% basis, $185 million). In H1 2022, the Group's share was $376 million (on a 100% basis, $626 million).

Operational performance

Copper Chile

Copper production of 249,400 tonnes was 9% lower than the prior period (30 June 2022: 273,400 tonnes).

At Los Bronces, production decreased by 13% to 112,500 tonnes (30 June 2022: 129,700 tonnes) due to lower grades (0.52% vs 0.59%) and lower throughput (22.5 Mt vs 23.1 Mt) as a result of unfavourable ore characteristics, including higher ore hardness. The unfavourable ore characteristics in the current area of mining will continue to affect the operation until the next phase of the mine is accessed.

At Collahuasi, Anglo American's attributable share of copper production decreased by 10% to 114,400 tonnes (30 June 2022: 127,800 tonnes) due to planned lower grades (1.07% vs 1.14%).

Production at El Soldado increased by 42% to 22,500 tonnes (30 June 2022: 15,900 tonnes) due to planned higher grades (0.84% vs 0.54%), reflecting production from a new phase of the mine.

Chile´s central zone continues to face severe drought conditions. Management initiatives to improve water efficiency and secure alternative sources of water will continue in order to mitigate the impact on production. From 2025, more than 45% of Los Bronces' needs will be met through a desalinated water supply.

The environmental permit for the Los Bronces open pit expansion and underground development was approved on 17 April 2023. The Los Bronces mine plan is being updated to take into account the delay in the permit approval and reflect the ongoing permitting complexities in the region. The expected delay in finalising the permitting process will impact the development of the next phase of the mine, which enables access to higher grade, softer ore. Studies for the Los Bronces underground expansion are ongoing.

Copper Peru

Quellaveco produced 137,800 tonnes, reflecting the progressive ramp-up in production volumes since first production in July 2022. The plant successfully completed planned maintenance in the first quarter, and achieved throughput beyond nameplate capacity several times during the second quarter, reaching commercial production levels in June.

Following first production from the molybdenum plant in April 2023, the ramp-up is near completion.

With the mine operational, focus is now on completing the construction and commissioning of the coarse particle recovery (CPR) plant.

Markets

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 period. At Copper Chile, 134,500 tonnes of copper were provisionally priced at 377 c/lb at 30 June 2023 (30 June 2022: 145,900 tonnes provisionally priced at 374 c/lb). At Copper Peru, 91,700 tonnes of copper were provisionally priced at 377c/lb at 30 June 2023.

At the start of the year, the LME copper price benefited from positive macro-economic sentiment that drove markets higher, underpinned by the re-opening of China, where Covid-19 restrictions were lifted. Market optimism subsequently tapered off as global economic growth prospects were impacted by rising interest rates and a slower than expected recovery in China. Copper's underlying fundamentals, however, remain attractive, as continued global decarbonisation efforts benefit the use of copper in applications and infrastructure associated with the energy transition. Reported stocks fell to historically low levels and supply disruptions continued to be a feature of the sector.

Financial performance

Underlying EBITDA for Copper increased by 28% to $1,492 million (30 June 2022: $1,166 million), driven by Quellaveco which started production in July 2022, partly offset by a 19% increase in unit costs and a 2% decrease in realised price.

Copper Chile

Underlying EBITDA decreased by 41% to $691 million (30 June 2022: $1,166 million), driven by lower sales and higher unit costs. Unit costs increased by 37% to 205 c/lb (30 June 2022: 150 c/lb), reflecting the impact of higher inflation, lower production and a stronger Chilean peso.

Capital expenditure increased by 14% to $657 million (30 June 2022: $577 million), mainly driven by expenditure on the Collahuasi desalination project.

Copper Peru

Underlying EBITDA was $801 million, reflecting a realised price of 394 c/lb and unit costs of 132 c/lb for the six month period.

Capital expenditure was $221 million. $111 million relates to our share of project capex, the remainder primarily relates to development and stripping costs.

Operational outlook

Copper Chile

Production guidance for Chile for 2023 is 530,000-580,000 tonnes, subject to water availability.

C1 unit cost guidance for 2023 is c.205 c/lb.

Copper Peru

Production guidance for Peru for 2023 is 310,000-350,000 tonnes.

C1 unit cost guidance for 2023 is c.100 c/lb.

Nickel

Financial and operational metrics

⁽¹⁾Realised price.

⁽²⁾C1 unit cost.

Operational performance

Nickel production was in line with the prior period at 19,600 tonnes (30 June 2022: 19,600 tonnes), as lower grades were largely offset by improved operational performance.

Markets

Differences between the market price (which is LME-based) and our realised price (the ferronickel price) are due to the discounts (or premiums) to the LME price, which depend on market conditions, supplier products and consumer preferences.

The average LME nickel price of $10.98/lb was 12% lower (30 June 2022: $12.52/lb), mainly due to the uncertain macro-economic outlook. Global nickel consumption grew strongly year on year, particularly in China which saw record H1 volumes of nickel consumed in the stainless steel and battery sectors. Global refined nickel production also increased, particularly in Indonesia.

Financial performance

Underlying EBITDA decreased by 54% to $110 million (30 June 2022: $239 million), as higher sales volumes
were offset by lower average realised prices and higher unit costs. C1 unit costs increased by 13% to 550 c/lb (30 June 2022: 487 c/lb), reflecting the impact of higher costs of production due to lower grade ore, as well as higher consumable input prices.

Capital expenditure increased by 28% to $41 million (30 June 2022: $32 million), driven by higher sustaining capital expenditure.

Within special items and remeasurements, an impairment of $361 million (before tax) was recognised at Barro Alto following revisions to the long term cost profile.

Operational outlook

Production guidance for 2023 is 38,000-40,000 tonnes.

C1 unit cost guidance for 2023 is c.560 c/lb.

Platinum Group Metals (PGMs)

Financial and operational metrics

⁽¹⁾Production reflects own mined production and purchase of metal in concentrate. PGM volumes consist of 5E metals and gold.

⁽²⁾Sales volumes exclude the sale of refined metal purchased from third parties and toll material. 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⁾The total PGMs mining EBITDA margin excludes the impact of the sale of refined metal purchased from third parties, purchase of concentrate and tolling.

⁽⁶⁾Includes Unki, Mototolo and PGMs' share of joint operations (Kroondal and Modikwa). Other operations margin includes unallocated market development, care and maintenance, and corporate costs.

⁽⁷⁾Purchase of concentrate from joint operations, associates and third parties for processing into refined metals, tolling and trading activities.

Operational performance

Total PGM production decreased by 7% to 1,844,300 ounces (30 June 2022: 1,987,500 ounces), principally due to lower grades at Mogalakwena and the impact of planned infrastructure closures at Amandelbult at the end of 2022.

Own mined production

PGM production from own managed mines (Mogalakwena, Amandelbult, Unki and Mototolo) and equity share of joint operations decreased by 8% to 1,198,700 ounces (30 June 2022: 1,309,400 ounces).

Mogalakwena PGM production decreased by 10% to 461,400 ounces (30 June 2022: 510,200 ounces), largely as a result of lower grades.

Amandelbult PGM production decreased by 13% to 299,400 ounces (30 June 2022: 343,300 ounces) as a
result of the planned mining infrastructure closures at the end of 2022, as well as short term operational challenges 

at Tumela.

Production from other operations decreased by 4% to 437,900 ounces (30 June 2022: 455,900 ounces), mainly due to lower production from Kroondal as a consequence of planned ramp-down of the operation.

Purchase of concentrate

Purchase of concentrate (POC) decreased by 5% to 645,600 ounces (30 June 2022: 678,100 ounces), driven by the impact of lower production at Kroondal as well as lower third-party receipts.

Refined production and sales volumes

Refined PGM production (excluding toll-treated metal) decreased by 13% to 1,699,800 ounces
(30 June 2022: 1,959,100 ounces) due to the ramp-up at Polokwane smelter in January following its rebuild, planned asset integrity work at the processing operations and the impact of Eskom load-curtailment (c.66,000 ounces of deferred production).

PGM sales volumes decreased by 12% to 1,807,300 ounces (30 June 2022: 2,044,400 ounces) in line with lower refined production.

Markets

PGM prices were mostly weaker in the first half of 2023, as a mixed macro-economic backdrop was overlaid with adverse PGM-specific factors. The average realised PGM basket price decreased by 29% in the period to $1,885 per PGM ounce (30 June 2022: $2,671 per PGM ounce).

The average rhodium market price of $8,957 per ounce was 48% lower than for the same period in 2022, driven by persistent selling pressure from the glass industry, which has freed up stock by transitioning to a lower rhodium, higher platinum mix. Palladium averaged $1,505 per ounce, 32% lower, owing to robust Russian metal flows and subdued automotive demand. In contrast, platinum increased by 1% to $1,009 per ounce. The minor PGMs, iridium and ruthenium, continued to make robust contributions to the basket price.

Financial performance

Underlying EBITDA decreased to $667 million (30 June 2022: $2,732 million), primarily driven by a lower basket price, which resulted in lower POC margins and affected the cost of POC inventory. EBITDA was further impacted by a decrease in sales volumes and higher unit costs. Unit costs increased by 5% to $993/PGM ounce (30 June 2022: $948/PGM ounce), due to lower production and higher inflation, partly offset by the weaker South African rand.

Capital expenditure increased by 14% to $449 million (30 June 2022: $394 million), driven by planned higher
stay-in-business expenditure, partly offset by the weaker South African rand.

Operational outlook

PGM metal in concentrate production guidance for 2023 is 3.6-4.0 million ounces, with own mined output accounting for c.65%. Refined PGM production guidance for 2023 is 3.6-4.0 million ounces, subject to the extent of Eskom load-curtailment.

Unit cost guidance for 2023 is c.$1,000/PGM ounce.

De Beers - Diamonds

Financial and operational metrics⁽¹⁾

⁽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 Canada, which is on an attributable 51% basis.

⁽²⁾Total sales volumes on a 100% basis were 17.3 million carats (30 June 2022: 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 $2.5 billion (30 June 2022: $3.3 billion).

⁽⁶⁾Total De Beers EBITDA margin shows mining EBITDA margin on an equity basis, which excludes the impact of non-mining activities, third‑party sales, purchases, trading downstream and corporate.

⁽⁷⁾Other includes Element Six, brands and consumer markets, and corporate.

Markets

The high levels of polished diamond inventory in the midstream coming into 2023, as well as the ongoing macro-economic headwinds, impacted demand for rough diamonds. The anticipated rebound in Chinese demand following the removal of Covid-19 restrictions was impacted by a large wave of infections during the first quarter of 2023, which dampened consumer confidence. Amid the slow polished sector during the first half of 2023, midstream inventories have continued to build, with profitability under strain from softening polished prices and higher financing costs.

Operational performance

Mining

Rough diamond production was marginally lower than the strong first half of 2022, at 16.5 million carats
(30 June 2022: 16.9 million carats), reflecting strong operational performance in most regions, offset by the
planned reduction in South Africa as the Venetia open pit transitions to underground operations.

In Botswana, production increased by 9% to 12.7 million carats (30 June 2022: 11.7 million carats), driven by the planned treatment of higher grade ore at Orapa.

Namibia production increased by 21% to 1.2 million carats (30 June 2022: 1.0 million carats), primarily driven by
the contribution from the Benguela Gem vessel, which commenced production in March 2022, and the ongoing ramp-up and expansion of the mining area at the land operations.

South Africa production decreased by 59% to 1.2 million carats (30 June 2022: 2.9 million carats), due to the planned completion of the Venetia open pit in December 2022. Venetia continues to process lower grade surface stockpiles, which will result in temporary lower production levels as it transitions to underground operations, where first production was recently achieved. It will ramp-up over the next few years as development continues.

Production in Canada increased by 9% to 1.4 million carats (30 June 2022: 1.2 million carats) as the treatment of higher grade ore offset planned plant maintenance.

Financial performance

Total revenue decreased to $2.8 billion (30 June 2022: $3.6 billion), with rough diamond sales decreasing to $2.5 billion (30 June 2022: $3.3 billion) reflecting the softening in demand. Total rough diamond sales volumes of 15.3 million carats were in line with the prior period (30 June 2022: 15.3 million carats), as a result of a higher proportion of lower value rough diamonds being sold in 2023. This impacted the average realised price in the first half of the year, which decreased by 23% to $163/ct (30 June 2022: $213/ct), and reflects the more cautious approach Sightholders took to planning their 2023 allocation schedule due to the uncertain macro-economic outlook. The average rough diamond price index also decreased by 2%, reflecting the overall softening in consumer demand for diamond jewellery and build-up in rough diamond inventory in the midstream.

Underlying EBITDA decreased by 63% to $347 million (30 June 2022: $944 million), driven by the lower
average realised price and higher unit costs. Unit costs increased by 7% at $63/ct (30 June 2022: $59/ct),
as lower production volumes, higher inflation and input costs were partially offset by the benefits of favourable exchange rates.

Capital expenditure increased by 21% to $302 million (30 June 2022: $250 million), largely due to the Venetia underground project as well as the continued execution of life-extension projects.

De Beers and the Government of the Republic of Botswana have reached an agreement in principle on a new
10-year sales agreement for Debswana's rough diamond production (through to 2033) and the new 25-year Debswana mining licences (through to 2054). Whilst the implementation of the formal sales agreement and mining licences is being finalised, the terms of the most recent sales agreement (which expired on 30 June) will remain in place. The new arrangements between De Beers and the Government of Botswana constitute a related party transaction under the UK Listing Rules, given that both Anglo American and the Government of Botswana are shareholders in De Beers, and therefore will be subject to approval by Anglo American's shareholders in due course.

Brands and consumer markets

The underlying demand for branded diamond jewellery remains strong. Despite the ongoing macro-economic uncertainty, De Beers Jewellers delivered a solid first half performance with double digit growth in bridal and collections and continues to focus on developing the brand in China.

Operational and market outlook

Macro-economic conditions are expected to remain challenging over the near term, impacting consumer spending on diamond jewellery.

Diamond provenance continues to grow in importance for stakeholders throughout the diamond value chain.
In June 2023, De Beers announced that the Tracr™ blockchain platform would open to participants across the diamond industry. Having immutable data at scale about a diamond's journey from the source is a major step forward and will underpin consumer confidence in natural diamonds and their provenance. The increased focus
on diamond provenance by many retailers and global brands in key markets has the potential to reinforce continued demand for De Beers' rough diamonds in the medium and longer term.

Despite near term challenges faced by the diamond industry, our research confirms consumers' desire for natural diamonds, which is expected to remain robust in key consumer markets in the long term. The global supply of rough diamonds is expected to decline owing to limited new discoveries, which in turn is expected to support value growth potential for natural diamonds.

2023 Guidance

Production guidance for 2023 is 30-33 million carats (100% basis), subject to trading conditions.

2023 unit cost guidance is c.$75/ct.

Iron Ore

Financial and operational metrics

⁽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 differ to Kumba's stand-alone reported results due to sales to other Group companies.

Operational performance

Kumba

Production increased by 6% to 18.7 Mt (30 June 2022: 17.8 Mt), driven by a 23% increase at Kolomela to 6.0 Mt (30 June 2022: 4.8 Mt), following the recovery from operational challenges in the comparative period. Production at Sishen was broadly flat at 12.8 Mt (30 June 2022: 12.9 Mt). During the first half of 2023, both operations were impacted by ongoing constraints at Transnet - the third-party rail and port operator. The rail constraints have led to a significant build-up of iron ore stockpiles, which necessitated lower production given the lack of available storage space. The resulting low levels of finished stock at the port impacted sales volumes, which decreased by 3% to 19.0 Mt (30 June 2022: 19.6 Mt). Total finished goods inventory increased to 7.9 Mt, with the majority of this located at the mines.

Minas-Rio

Production increased by 22% to 12.0 Mt (30 June 2022: 9.8 Mt), driven by strong mining and plant performance and timing of maintenance. This has resulted in a number of performance records being achieved in the second quarter, reflecting the operational improvement.

Markets

⁽¹⁾ As publication of the Metal Bulletin (MB) 66 index has ceased, the reference benchmark is the MB 65 index from 2023. 2022 updated to reflect MB 65 price.

Kumba's FOB realised price of $106/wet metric tonne was 4% higher than the equivalent Platts 62% Fe FOB Saldanha market price (adjusted for moisture) of $102/wet metric tonne. The premium for the higher iron content at 63.3% and relatively high proportion (approximately 67%) of lump produced, in particular because higher quality Fe product helps steel mills reduce emissions, more than offset the impact of provisionally priced sales volumes.

Minas-Rio's pellet feed product is also higher grade (with iron content of 67% and lower impurities) than the reference product used for the Platts 62% Fe CFR China index. The MB 65 fines index, therefore, is used when referring to the Minas-Rio product. The Minas-Rio realised price of $104/wet metric tonne was 3% higher than the equivalent MB 65 FOB Brazil index (adjusted for moisture) of $101/wet metric tonne, as the premium for our high quality product more than offset the impact of provisionally priced sales volumes.

Financial performance

Underlying EBITDA for Iron Ore decreased by 23% to $1,775 million (30 June 2022: $2,298 million), driven by a 22% decrease in the realised iron ore price offsetting higher sales and lower unit costs.

Kumba

Underlying EBITDA decreased by 30% to $1,105 million (30 June 2022: $1,570 million), driven by a lower average realised price and lower sales volumes. Unit costs decreased by 9% to $39/tonne (30 June 2022: $43/tonne) due to higher production volumes at Kolomela and the benefit of a weaker South African rand.

Capital expenditure decreased by 22% to $277 million (30 June 2022: $355 million), fundamentally driven by the weaker South African rand.

Minas-Rio

Underlying EBITDA decreased by 8% to $670 million (30 June 2022: $728 million), as higher sales volumes and lower unit costs were more than offset by the lower average realised price. Unit costs decreased by 9% to
$32/tonne (30 June 2022: $35/tonne), primarily reflecting the benefit of higher production volumes.

Capital expenditure was 46% higher at $105 million (30 June 2022: $72 million), reflecting the impact of timing differences.

Operational outlook

Kumba

Production guidance for 2023 is 35-37 Mt, subject to third-party rail and port performance.

2023 unit cost guidance is c.$43/tonne.

Minas-Rio

Production guidance for 2023 is 22-24 Mt.

2023 unit cost guidance is c.$33/tonn

Steelmaking Coal

Financial and operational metrics

⁽¹⁾Production volumes are saleable tonnes, excluding thermal coal production of 0.8 Mt (30 June 2022: 0.8 Mt). Includes production relating to processing of third-party product.

⁽²⁾ Sales volumes exclude thermal coal sales of 0.8 Mt (30 June 2022: 0.7 Mt). The first half of 2023 includes 0.2 Mt (30 June 2022: 0.1Mt) of steelmaking coal mined by third parties 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 cost per tonne, excluding royalties and study costs.

Operational performance

Production increased to 6.9 Mt (30 June 2022: 4.8 Mt), reflecting the benefit of all three underground longwall operations running, with particularly high production from Moranbah, which underwent an extended longwall move during the first half of 2022, as well as increased production from the open cut operations that were impacted by unseasonal wet weather in 2022.

Despite longwall moves during the first half of 2023, production was higher at both Grosvenor and Aquila, with both operations having started up during February 2022.

Markets

⁽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 95% of average benchmark price (30 June 2022: 87%), driven by a higher proportion of premium HCC sales and the impact of sales timing.

The average benchmark price for Australian HCC decreased to $294/tonne (30 June 2022: $467/tonne) as seaborne steelmaking coal prices declined from record highs set in March 2022, amid lower global crude steel production. HCC prices increased at the start of 2023 in response to supply impacts in Queensland, arising from flooding due to heavy rainfall and a rail outage, before declining in the second quarter on reduced seaborne demand for Australian coking coal amid a recovery in supply.

Underlying EBITDA decreased to $615 million (30 June 2022: $1,399 million), driven by a 31% decrease in the weighted average realised price for steelmaking coal. This was partially offset by increased sales volumes and a 16% decrease in unit costs to $135/tonne (30 June 2022: $160/tonne), reflecting benefits of increased production. The first half of 2022 included a $250 million receipt from the Group's self-insurance entity.

Capital expenditure increased to $273 million (30 June 2022: $265 million), with higher stay-in-business spend at Grosvenor largely offset by lower life-extension expenditure following the completion of the Aquila project in 2022.

Operational outlook

Export steelmaking coal production guidance for 2023 is 16-19 Mt.

Unit cost guidance for 2023 is c.$105/tonne.

Manganese

Financial and operational metrics

Operational performance

Attributable manganese ore production was in line with the prior period at 1.8 Mt (30 June 2022: 1.8 Mt).

Financial performance

Manganese (Samancor)

Underlying EBITDA decreased by 38% to $138 million (30 June 2022: $223 million), driven mainly by the weaker average realised manganese ore price, partially offset by lower operating costs.

The average benchmark price for manganese ore (Metal Bulletin 44% manganese ore CIF China) decreased by 26% to $5.19/dmtu (30 June 2022: $6.99/dmtu). Supply impacts at the beginning of the year incrementally increased prices, but as supply recovered and demand outlook weakened, prices declined and ended the first half at $4.54/dmtu.

Crop Nutrients

Financial and operational metrics

⁽¹⁾Other comprises projects and corporate costs as well as the share in associate results from The Cibra Group, a fertiliser distributor based in Brazil.

Crop Nutrients

Anglo American is developing the Woodsmith project in the north east of England to access the world's largest known deposit of polyhalite, a natural mineral fertiliser product containing potassium, sulphur, magnesium and calcium - four of the six nutrients that every plant needs to grow.

The Woodsmith project is located on the North Yorkshire coast, just south of Whitby, where polyhalite ore will be extracted via 1.6 km deep mine shafts and transported to Teesside via an underground conveyor belt in a 37 km mineral transport system (MTS) tunnel, thereby minimising any environmental impact on the surface. It will be granulated at a materials handling facility to produce a comparatively low carbon fertiliser - known as POLY4 - that will then be exported from the port facility, where we have priority access, to a network of customers around the world. POLY4 will enable farmers to enhance their crop yield, increase crop quality and improve soil structure with one core product.

Progress update

Woodsmith project

Good progress continued on the core infrastructure during the first half, with capital expenditure of $0.3 billion (30 June 2022: $0.2 billion) out of an expected $0.7 billion for the year as a whole (previously $0.8 billion, reflecting the revised timing of payments for certain non-critical activities). Sinking activities at the two deep shafts are progressing well. The service shaft is now c.500 metres deep. Sinking activities, which began in January 2023 at 120 metres below the surface for the production shaft, successfully ramped up to planned sinking rates and reached a depth of c.245 metres.

Excavation of the three shallow shafts that will provide both ventilation and additional access to the MTS tunnel is now complete, having completed the first in 2022.

The MTS tunnel is also progressing to plan and has now reached c.24 km of the total 37 km length.

In parallel to the core infrastructure development, we are enhancing the project's configuration to allow a higher production capacity and more efficient, scalable mining methods over time. The required studies are under way and will ensure that additional infrastructure is optimally designed to enable optionality in the future and maximise long term value over the expected multi-decade asset life.

Market development - POLY4

The ongoing focus of the market development activities is 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 continued to develop our routes to market partnerships in key high-value regions, working closely with our customers and with farmers. Results from on-farm demonstrations continue to reinforce the quality and characteristics of POLY4, which include increased crop yields and improved soil health, tackling some of the greatest challenges the food industry is facing today.

POLY4 offers farmers a solution to agricultural efficiency and sustainability challenges through its naturally low chloride multi-nutrient composition, its suitability for organic use and comparatively low carbon profile, and with little waste generated in its production.

Corporate and Other

Financial metrics

⁽¹⁾Revenue within Corporate activities and unallocated costs primarily relates to third-party shipping activities, as well as the Marketing business's energy solutions activities.

Financial overview

Exploration

Exploration expenditure was $65 million, in line with the prior period (30 June 2022: $64 million).

Corporate activities and unallocated costs

Underlying EBITDA was a $55 million gain (30 June 2022: $218 million loss), driven primarily by the Marketing business's energy solutions activities and the Group's self-insurance entity. The positive period-on-period variance reflects the finalisation of the Grosvenor claim in the first half of 2022 by the Group's self-insurance entity, which resulted in an expense in Corporate activities that was offset within the underlying EBITDA of Steelmaking Coal. There have been no equivalent insurance claim settlements in the current period.

Guidance summary

Production and unit costs

Note: Unit costs exclude royalties, depreciation and include direct support costs only. FX rates used for H2 2023 costs: ~18 ZAR:USD, ~1.5 AUD:USD, ~4.8 BRL:USD, ~800 CLP:USD, ~3.7 PEN:USD.

⁽¹⁾ Copper business only. On a contained-metal basis. Total copper is the sum of Chile and Peru. Unit cost total is a weighted average based on the mid-point of production guidance. 2023 Chile: 530-580 kt; Peru 310-350 kt. 2024 Chile: 550-600 kt; Peru: 360-400 kt. 2025 Chile: 530-580 kt; Peru 310-350 kt. Production in Chile is subject to water availability. Chile 2023 unit cost is c.205 c/lb. Peru 2023 unit cost is c.100 c/lb.

⁽²⁾ Nickel operations in Brazil only. The Group also produces approximately 20 kt of nickel on an annual basis as a co-product from the PGM operations. Nickel production is impacted by declining grades. Bulk ore sorting unit benefits 2024, and 2025 is impacted by a maintenance shutdown.

⁽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 (~65%) and purchased concentrate volumes (~35%). Metal in concentrate production is impacted by lower grade and recoveries at Mogalakwena, planned infrastructure closures and lower volumes from Amandelbult. Kroondal switches to a tolling arrangement upon our exit from the operation, expected in 2024. Lower volumes in 2025 reflect the transition of the Siyanda POC agreement to tolling.

⁽⁴⁾ 5E + gold produced refined ounces. Includes own-mined production and purchased concentrate volumes. Refined production is subject to the impact of Eskom load-curtailment. Kroondal switches to a tolling arrangement upon our exit from the operation, expected in 2024. Lower volumes in 2025 reflect the transition of the Siyanda POC agreement to tolling.

⁽⁵⁾ Unit cost is based on De Beers' share of production. Production on a 100% basis except for the Gahcho Kué joint operation, which is on an attributable 51% basis, subject to trading conditions. Venetia continues to transition to underground operations - with first production recently achieved. Step-up in 2023 unit cost is primarily driven by change in production mix, as Venetia transitions to underground operations and delivers a lower carat profile during ramp-up.

⁽⁶⁾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. 2023 Kumba: 35-37 Mt (production is impacted by high levels of on-mine inventory); Minas-Rio: 22-24 Mt. 2024 Kumba: 37-39 Mt (subject to finalisation of UHDMS plant review); Minas-Rio: 24-26 Mt. 2025 Kumba: 39-41 Mt; Minas-Rio: 25-27 Mt. Kumba production is subject to the third-party rail and port performance. Kumba 2023 unit cost is c.$43/tonne. Minas-Rio 2023 unit cost is c.$33/tonne.

⁽⁷⁾Steelmaking Coal FOB/tonne unit cost comprises managed operations and excludes royalties and study costs. Production excludes thermal coal by-product.

Capital expenditure⁽¹⁾

Further details on Anglo American's high quality growth and life-extension projects, including details of the associated volumes benefit, are disclosed on pages 11-12.

Long term sustaining capital expenditure is expected to be $3.0-3.5 billion per annum⁽³⁾, excluding life-extension projects.

Other guidance

- 2023 depreciation: $3.0-3.2 billion (previously $3.3-3.5 billion)

- 2023 underlying effective tax rate: 36-38%⁽⁴⁾ (previously 35-37%)

- Long term underlying effective tax rate: 33-37%⁽⁴⁾

- 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. Shown excluding capitalised operating cash flows. Consequently, for Quellaveco, remaining growth capex reflects attributable share. Guidance includes unapproved projects and is, therefore, subject to progress of the project studies and unapproved Woodsmith capex of ∼$1 billion per annum is excluded after 2023. Refer to the H1 2023 results presentation slides 41-44 for further detail on the breakdown of the capex guidance at project level.

⁽²⁾Attributable share of capex. Collahuasi desalination capex shown includes related infrastructure.

⁽³⁾Long term sustaining capex guidance is shown on a 2022 real basis.

⁽⁴⁾ Underlying effective tax rate is highly dependent on a number of factors, including the mix of profits and any corporate tax reforms impacting the countries where we operate, and may vary from the guided ranges. The ~1% increase in 2023 underlying effective tax rate guidance reflects the expected deferred tax impact of the Chile mining royalty bill which is expected to be substantively enacted in H2 2023.

For further information, please contact:

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 everyday 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.

www.angloamerican.com

Webcast of presentation:

A live webcast of the results presentation, starting at 9.00am UK time on 27 July 2023, can be accessed through the Anglo American website at www.angloamerican.com

Note: Throughout this results announcement, '$' denotes United States dollars and 'cents' refers to United States cents. Tonnes are metric tons, 'Mt' denotes million tonnes and 'kt' denotes thousand tonnes, unless otherwise stated.

Group terminology

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

Forward-looking statements and third-party information:

This document includes forward-looking statements. All statements other than statements of historical facts included in this document, including, without limitation, those regarding Anglo American's financial position, business, acquisition and divestment strategy, dividend policy, plans and objectives of management for future operations, prospects and projects (including development plans and objectives relating to Anglo American's products, production forecasts and Ore Reserve and Mineral Resource positions) and sustainability performance related (including environmental, social and governance) goals, ambitions, targets, visions, milestones and aspirations, are forward-looking statements. By their nature, such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Anglo American or industry results to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.

Such forward-looking statements are based on numerous assumptions regarding Anglo American's present and future business strategies and the environment in which Anglo American will operate in the future. Important factors that could cause Anglo American's actual results, performance or achievements to differ materially from those in the forward-looking statements include, among others, levels of actual production during any period, levels of global demand and commodity market prices, unanticipated downturns in business relationships with customers or their purchases from Anglo American, mineral resource exploration and project development capabilities and delivery, recovery rates and other operational capabilities, safety, health or environmental incidents, the effects of global pandemics and outbreaks of infectious diseases, the impact of attacks from third parties on our information systems, natural catastrophes or adverse geological conditions, climate change and extreme weather events, the outcome of litigation or regulatory proceedings, the availability of mining and processing equipment, the ability to obtain key inputs in a timely manner, the ability to produce and transport products profitably, the availability of necessary infrastructure (including transportation) services, the development, efficacy and adoption of new or competing technology, challenges in realising resource estimates or discovering new economic mineralisation, the impact of foreign currency exchange rates on market prices and operating costs, the availability of sufficient credit, liquidity and counterparty risks, the effects of inflation, terrorism, war, conflict, political or civil unrest, uncertainty, tensions and disputes and economic and financial conditions around the world, evolving societal and stakeholder requirements and expectations, shortages of skilled employees, unexpected difficulties relating to acquisitions or divestitures, competitive pressures and the actions of competitors, activities by courts, regulators and governmental authorities such as in relation to permitting or forcing closure of mines and ceasing of operations or maintenance of Anglo American's assets and changes in taxation or safety, health, environmental or other types of regulation in the countries where Anglo American operates, conflicts over land and resource ownership rights and such other risk factors identified in Anglo American's most recent Annual Report. Forward-looking statements should, therefore, be construed in light of such risk factors and undue reliance should not be placed on forward-looking statements. These forward-looking statements speak only as of the date of this document. Anglo American expressly disclaims any obligation or undertaking (except as required by applicable law, the City Code on Takeovers and Mergers, the UK Listing Rules, the Disclosure and Transparency Rules of the Financial Conduct Authority, the Listings Requirements of the securities exchange of the JSE Limited in South Africa, the SIX Swiss Exchange, the Botswana Stock Exchange and the Namibian Stock Exchange and any other applicable regulations) to release publicly any updates or revisions to any forward-looking statement contained herein to reflect any change in Anglo American's expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based.

Nothing in this document should be interpreted to mean that future earnings per share of Anglo American will necessarily match or exceed its historical published earnings per share. Certain statistical and other information about Anglo American included in this document is sourced from publicly available third-party sources. As such it has not been independently verified and presents the views of those third parties, but may not necessarily correspond to the views held by Anglo American and Anglo American expressly disclaims any responsibility for, or liability in respect of, such information.

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