27 November 2018 |
Investor visit to Anglo American's Copper business |
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Anglo American plc ("Anglo American") is this week hosting a number of analysts and investors on a visit to Santiago, Chile and Lima, Peru to provide a detailed overview of Anglo American's three world-class copper assets: Los Bronces and Collahuasi in Chile, and Quellaveco in Peru.
Mark Cutifani, Chief Executive of Anglo American, said: "This week's visit will highlight the Tier 1 quality of Anglo American's copper assets and the significant performance improvements that we continue to deliver. We are also progressing a number of low cost copper growth opportunities - from our Quellaveco mine where construction is under way in Peru, to the development options we have at Los Bronces and Collahuasi in Chile, and our targeted mineral discovery portfolio.
"We expect the supply of copper to become further constrained in the years and decades ahead as the key ingredient in the fast-growing renewable energy and electric vehicle markets, in addition to the infrastructure, housing and consumer electronics markets that continue to be fuelled by the world's fast-expanding middle class population. The world-class quality of our copper assets and our many options for disciplined growth position Anglo American well to meet that significant additional demand."
Anglo American is today increasing its copper production guidance from its operations in Chile for 2018 and the following three years, as follows:
2018: ~660,000 tonnes (from 630,000 - 660,000 tonnes previously)
2019: 630,000 - 660,000 tonnes (from 600,000 - 660,000 tonnes previously)
2020: 620,000 - 680,000 tonnes (from 600,000 - 660,000 tonnes previously)
2021: 590,000 - 650,000 (new guidance)
Unit cost guidance for 2018 is lowered to ~140 c/lb (from ~145 c/lb previously) and 2019 guidance is 135 - 140 c/lb (new guidance).
Anglo American expects to add the first production from its Quellaveco mine in Peru in 2022. Quellaveco will produce 300,000 tonnes of copper equivalent per year, at a highly competitive first quartile cash cost of $1.05 per pound of copper, both on average over the mine's first ten years. With a current Reserve Life of 30 years, Quellaveco provides significant expansion potential which, in combination with other organic growth opportunities, puts Anglo American on track towards producing more than one million tonnes of copper per year in the medium term.
The presentations that will be made during the visit will be available on the Anglo American website www.angloamerican.com/investors/investor-presentations/2018.
For further information, please contact:
Forward-looking statements:
This announcement includes forward-looking statements. All statements other than statements of historical facts included in this announcement, 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 (including development plans and objectives relating to Anglo American's products, production forecasts and reserve and resource positions), 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, mineral resource exploration and development capabilities, recovery rates and other operational capabilities, the availability of mining and processing equipment, the ability to produce and transport products profitably, the availability of transportation infrastructure, the impact of foreign currency exchange rates on market prices and operating costs, the availability of sufficient credit, the effects of inflation, political uncertainty and economic conditions in relevant areas of the world, the actions of competitors, activities by governmental authorities such as permitting 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 announcement. Anglo American expressly disclaims any obligation or undertaking (except as required by applicable law, the City Code on Takeovers and Mergers (the "Takeover Code"), 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 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.
Notes to editors:
Anglo American is a global diversified mining business and our products are the essential ingredients in almost every aspect of modern life. Our portfolio of world-class competitive mining operations and undeveloped resources provides the metals and minerals to meet the growing consumer-driven demands of the world's developed and maturing economies. With our people at the heart of our business, we use innovative practices and the latest technologies to discover new resources and mine, process, move and market our products to our customers around the world.
As a responsible miner - of diamonds (through De Beers), copper, platinum and other precious metals, iron ore, coal and nickel - we are the custodians of what are precious natural resources. We work together with our key partners and stakeholders to unlock the sustainable value that those resources represent for our shareholders, the communities and countries in which we operate and for society at large. Anglo American is re-imagining mining to improve people's lives.
www.angloamerican.com
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