Anglo American Production Report Q2 , 2021 | RNS | Ticker

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Anglo American Production Report Q2 , 2021

RNS Announcement

RNS Number : 7442F

Anglo American PLC

20 July 2021

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20 July 2021

Anglo American plc

Production Report for the second quarter ended 30 June 2021

Mark Cutifani, Chief Executive of Anglo American, said: "We have delivered a solid operational performance supported by comprehensive Covid-19 measures to help safeguard the lives and livelihoods of our workforce and host communities. We have generally maintained operating levels at approximately 95%⁽¹⁾ of normal capacity and, as a consequence, production increased by 20%⁽²⁾ compared to Q2 of last year, with planned higher rough diamond production at De Beers, as well as strong plant performance at our Los Bronces copper operation in Chile and higher throughput at our Mogalakwena platinum group metals mine in South Africa.

"We also successfully completed the demerger of our thermal coal operations in South Africa and announced the sale of our minority interest in Cerrejón in Colombia, marking the last stage of our transition from thermal coal operations, ahead of schedule. Our portfolio and growth investments are increasingly focused on those future-enabling metals and minerals that are critical to decarbonising energy and transport and to meeting consumers' growing needs, from luxury to everyday."

Q2 highlights

• Completed the demerger of the South Africa thermal coal operations.

• Announced the sale of our 33% interest in the Cerrejón thermal coal mine, subject to regulatory approvals.

• Rough diamond production increased by 134%, reflecting planned higher production in response to the ongoing consumer demand recovery.

• Platinum Group Metals (PGMs) production increased by 59%, with Mogalakwena production increasing by 11%, reflecting the relatively lower impact of Covid-19 lockdowns compared to Q2 2020. Strong refined output reflected stable performance from the ACP Phase A unit.

• Iron ore production increased by 6%, driven primarily by Kumba, reflecting the lower impact of Covid-19 lockdowns compared to Q2 2020.

• Copper production increased by 2% due to strong plant performance at Los Bronces.

• At our longwall metallurgical coal operations, mining restarted at Moranbah at the beginning of June and development work at Grosvenor continues to progress, with restart expected towards the end of the year.

Production	Q2 2021	Q2 2020	% vs. Q2 2020	H1 2021	H1 2020	% vs. H1 2020
Diamonds (Mct)⁽³⁾	8.2	3.5	134%	15.4	11.3	37%
Copper (kt)⁽⁴⁾	170	167	2%	330	314	5%
Platinum group metals (koz)⁽⁵⁾	1,058	665	59%	2,079	1,620	28%
Iron ore (Mt)⁽⁶⁾	15.7	14.8	6%	31.9	30.8	3%
Metallurgical coal (Mt)	3.0	4.0	(25)%	6.2	7.8	(20)%
Nickel (kt)⁽⁷⁾	10.6	10.8	(2)%	20.7	21.7	(5)%
Manganese ore (kt)	941	796	18%	1,845	1,639	13%
Thermal coal (Mt)⁽⁸⁾	4.3	4.4	(1)%	9.3	10.5	(12)%

(1) Production capacity excludes Moranbah and Grosvenor.

(2) Copper equivalent production is normalised to reflect the demerger of the South Africa thermal coal operations and the closure of the manganese alloy operations and excludes the impact of the Grosvenor suspension and announced sale of Cerrejón. Including the impact of Grosvenor and Cerrejón, copper equivalent production increased by 20% compared to Q2 2020.

(3) De Beers Group production is on a 100% basis, except for the Gahcho Kué joint venture which is on an attributable 51% basis.

(4) Contained metal basis. Reflects copper production from the Copper business unit only (excludes copper production from the Platinum Group Metals business unit).

(5) Produced ounces of metal in concentrate. 5E+Au (platinum, palladium, rhodium, ruthenium and iridium plus gold). Reflects own mine production and purchase of concentrate.

(6) Wet basis.

(7) Reflects nickel production from the Nickel business unit only (excludes nickel production from the Platinum Group Metals business unit).

(8) Reflects export primary production, secondary production sold into export markets and production sold domestically at export parity pricing from South Africa until the demerger of the South Africa thermal coal operations effective on 4 June 2021, and attributable export production (33.3%) from Colombia (Cerrejón).

PRODUCTION OUTLOOK SUMMARY

2021 production guidance is summarised as follows:

	2021 production guidance⁽¹⁾
Diamonds⁽²⁾	32-33 Mct
Diamonds⁽²⁾	(previously 32-34 Mct)
Copper⁽³⁾	650-680 kt
Copper⁽³⁾	(previously 640-680 kt)
Platinum Group Metals⁽⁴⁾	4.2-4.4 Moz
Platinum Group Metals⁽⁴⁾	(previously 4.2-4.6 Moz)
Iron ore⁽⁵⁾	64.5-66.5 Mt
Iron ore⁽⁵⁾	(previously 64.5-67.5 Mt)
Metallurgical coal⁽⁶⁾	14-16 Mt
Metallurgical coal⁽⁶⁾	14-16 Mt
Nickel⁽⁷⁾	42-44 kt
Nickel⁽⁷⁾	42-44 kt

(1) Subject to the extent of further Covid-19 related disruption.

(2) Subject to trading conditions and on a 100% basis except for the Gahcho Kué joint venture, which is on an attributable 51% basis.

(3) Copper business unit only. On a contained-metal basis.

(4) 5E + gold produced metal in concentrate ounces. Includes own mined production (~65%) and purchased concentrate volumes (~35%). The split of metals differs for own mined and purchased concentrate, refer to FY2019 results presentation slide 30 for indicative split of own mined volumes. FY2021 metal in concentrate production is expected to be 1.9-2.0 million ounces of platinum, 1.35-1.40 million ounces of palladium and 0.95-1.0 million ounces of other PGMs and gold.

(5) Wet basis.

(6) Excludes thermal coal production in Australia.

(7) Nickel business unit only.

REALISED PRICES

	H1 2021	H1 2020	H1 2021 vs H1 2020
De Beers
Consolidated average realised price ($/ct)⁽¹⁾	135	119	13	%
Average price index⁽²⁾	109	109	0	%
Copper (USc/lb)⁽³⁾	460	250	84	%
Platinum Group Metals
Platinum (US$/oz)	1,170	857	37	%
Palladium (US$/oz)	2,641	2,141	23	%
Rhodium (US$/oz)	24,377	8,985	171	%
Basket price (US$/PGM oz)⁽⁴⁾	2,884	1,956	47	%
Iron Ore - FOB prices⁽⁵⁾	210	90	133	%
Kumba Export (US$/wmt)⁽⁶⁾	216	91	137	%
Minas-Rio (US$/wmt)⁽⁷⁾	200	88	127	%
Metallurgical Coal
HCC (US$/t)⁽⁸⁾	117	123	(5)	%
PCI (US$/t)⁽⁸⁾	103	98	5	%
Nickel (USc/lb)	721	502	44	%
Thermal Coal
Australia (US$/t)⁽⁸⁾	87	58	50	%
South Africa - Export (US$/t)⁽⁹⁾	77	61	26	%
Colombia (US$/t)	65	46	41	%

(1) Consolidated average realised price based on 100% selling value post-aggregation.

(2) Average of the De Beers price index for the Sights within the 6-month period. The De Beers price index is relative to 100 as at December 2006. While the average H1 price index remained broadly flat year-on-year, the closing index increased by 14% compared to the start of 2021.

(3) The realised price for Copper excludes third party sales volumes.

(4) Price for a basket of goods per PGM oz. The dollar basket price is the net sales revenue from all metals (PGMs, base metals and other metals), excluding trading, per 5E + gold sold ounces (own mined and purchased concentrate).

(5) Average realised total iron ore price is a weighted average of the Kumba and Minas-Rio realised prices. The comparative has been restated as Kumba previously reported on a dry basis.

(6) Average realised export basket price (FOB Saldanha) (wet basis as product is shipped with ~1.6% moisture). The comparative has been restated as Kumba previously reported on a dry basis. The realised prices differ to Kumba's standalone results due to sales to other Group companies. Average realised export basket price (FOB Saldanha) on a dry basis is $220/t (H1 2020: $93/t) and this was higher than the dry 62% Fe benchmark price of $166/t (FOB South Africa, adjusted for freight).

(7) Average realised export basket price (FOB Açu) (wet basis as product is shipped with ~9% moisture).

(8) Weighted average coal sales price achieved at managed operations.

(9) Weighted average export thermal coal price achieved until the demerger of the South Africa thermal coal operations effective on 4 June 2021.

DE BEERS

De Beers⁽¹⁾ (000 carats)	Q2	Q2	Q2 2021 vs. Q2 2020		Q1	Q2 2021 vs. Q1 2021		H1	H1	H1 2021 vs. H1 2020
De Beers⁽¹⁾ (000 carats)	2021	2020	Q2 2021 vs. Q2 2020		2021	Q2 2021 vs. Q1 2021		2021	2020	H1 2021 vs. H1 2020
Botswana	5,727	1,825	214	%	4,960	15	%	10,687	7,469	43	%
Namibia	338	358	(6)	%	338	0	%	676	869	(22)	%
South Africa	1,276	555	130	%	1,161	10	%	2,437	1,306	87	%
Canada	899	789	14	%	710	27	%	1,609	1,633	(1)	%
Total carats recovered	8,240	3,527	134	%	7,169	15	%	15,409	11,277	37	%

Rough diamond production increased by 134% to 8.2 million carats, reflecting planned higher production to meet stronger demand for rough diamonds, as well as the impact of Covid-19 lockdowns across southern Africa in Q2 2020.

In Botswana, production increased by 214% to 5.7 million carats, reflecting the impact of the Covid-19 lockdown in Q2 2020.

Namibia production decreased by 6% to 0.3 million carats, primarily due to planned maintenance of the Mafuta vessel which completed in the quarter and another vessel remaining demobilised.

South Africa production increased by 130% to 1.3 million carats, due to planned treatment of higher grade ore from the final cut of the Venetia open pit, as well as the impact of the Covid-19 lockdown in Q2 2020.

Production in Canada increased by 14% to 0.9 million carats, primarily reflecting the impact of the Covid-19 measures implemented in Q2 2020.

Consumer demand for polished diamonds continued to recover, leading to strong demand for rough diamonds from midstream cutting and polishing centres, despite the impact on capacity from the severe Covid-19 wave in India during April and May. Rough diamond sales totalled 7.3 million carats⁽²⁾ (6.5 million carats on a consolidated basis)⁽²⁾⁽³⁾ from two Sights, reflecting the impact of the reduced Indian midstream capacity on Sight 4, compared with 0.3 million carats (0.2 million carats on a consolidated basis)⁽³⁾ from two Sights in Q2 2020, and 13.5 million carats (12.7 million carats on a consolidated basis)⁽³⁾ from three Sights in Q1 2021.

The H1 2021 consolidated average realised price increased by 13% to $135/ct (H1 2020: $119/ct), driven by an increased proportion of higher value rough diamonds sold. While the average price index remained broadly flat, the closing index increased by 14% compared to the start of 2021, reflecting tightness in inventories across the diamond value chain as well as positive consumer demand for polished diamonds.

Full Year Guidance

Production guidance⁽¹⁾ is tightened to 32-33 million carats (100% basis) (previously 32-34 million carats (100% basis)), subject to trading conditions and the extent of any further Covid-19 related disruptions.

(1) De Beers Group production is on a 100% basis, except for the Gahcho Kué joint venture which is on an attributable 51% basis.

(2) Due to ongoing travel restrictions and the timing of Sight 3 at the end of Q1 2021, the Sight was extended beyond its normal week-long duration. As a result, 0.2 Mct (total sales volume, 100% and consolidated basis) from Sight 3 were recognised in Q2 2021.

(3) Consolidated sales volumes exclude De Beers Group's JV partners' 50% proportionate share of sales to entities outside De Beers Group from the Diamond Trading Company Botswana and the Namibia Diamond Trading Company, which are included in total sales volume (100% basis).

De Beers⁽¹⁾	Q2	Q1	Q4	Q3	Q2	Q2 2021 vs. Q2 2020		Q2 2021 vs. Q1 2021		H1	H1	H1 2021 vs. H1 2020
De Beers⁽¹⁾	2021	2021	2020	2020	2020	Q2 2021 vs. Q2 2020		Q2 2021 vs. Q1 2021		2021	2020	H1 2021 vs. H1 2020
Carats recovered (000 carats)
100% basis (unless stated)
Jwaneng	3,169	3,091	1,452	1,748	1,138	178	%	3	%	6,260	4,338	44	%
Orapa⁽²⁾	2,558	1,869	2,811	3,079	687	272	%	37	%	4,427	3,131	41	%
Botswana	5,727	4,960	4,263	4,827	1,825	214	%	15	%	10,687	7,469	43	%

Debmarine Namibia	249	249	256	147	305	(18)	%	0	%	498	722	(31)	%
Namdeb (land operations)	89	89	81	95	53	68	%	0	%	178	147	21	%
Namibia	338	338	337	242	358	(6)	%	0	%	676	869	(22)	%

Venetia	1,276	1,161	1,287	1,178	555	130	%	10	%	2,437	1,306	87	%
South Africa	1,276	1,161	1,287	1,178	555	130	%	10	%	2,437	1,306	87	%

Gahcho Kué (51% basis)	899	710	776	915	789	14	%	27	%	1,609	1,633	(1)	%
Canada	899	710	776	915	789	14	%	27	%	1,609	1,633	(1)	%
Total carats recovered	8,240	7,169	6,663	7,162	3,527	134	%	15	%	15,409	11,277	37	%
Sales volumes
Total sales volume (100)% (Mct)⁽³⁾	7.3⁽⁴⁾	13.5⁽⁴⁾	6.9	6.6	0.3	n/a		(46)	%	20.8	9.2	126	%
Consolidated sales volume (Mct)⁽³⁾	6.5⁽⁴⁾	12.7⁽⁴⁾	6.4	6.5	0.2	n/a		(49)	%	19.2	8.5	126	%
Number of Sights (sales cycles)	2⁽⁴⁾	3⁽⁴⁾	2	3	2⁽⁵⁾					5⁽⁴⁾	4⁽⁵⁾

(1) De Beers Group production is on a 100% basis, except for the Gahcho Kué joint venture which is on an attributable 51% basis.

(2) Orapa constitutes the Orapa Regime which includes Orapa, Letlhakane and Damtshaa.

(4) Due to ongoing travel restrictions and the timing of Sight 3 at the end of Q1 2021, the Sight event was extended beyond its normal week-long duration. As a result, 0.2 Mct (total sales volume, 100% and consolidated basis) from Sight 3 were recognised in Q2 2021.

(5) Sight 3 in Q2 2020 was cancelled due to Covid-19 related restrictions on the movement of people and product.

COPPER

Copper⁽¹⁾ (tonnes)	Q2	Q2	Q2 2021 vs. Q2 2020		Q1	Q2 2021 vs. Q1 2021		H1	H1	H1 2021 vs. H1 2020
Copper⁽¹⁾ (tonnes)	2021	2020	Q2 2021 vs. Q2 2020		2021	Q2 2021 vs. Q1 2021		2021	2020	H1 2021 vs. H1 2020
Los Bronces	84,400	80,700	5	%	78,800	7	%	163,200	149,400	9	%
Collahuasi (44% share)	74,300	75,700	(2)	%	71,600	4	%	145,900	142,200	3	%
El Soldado	11,000	10,400	6	%	9,900	11	%	20,900	22,300	(6)	%
Total Copper	169,700	166,800	2	%	160,300	6	%	330,000	313,900	5	%

(1) Copper production shown on a contained metal basis. Reflects copper production from the Copper business unit only (excludes copper production from the Platinum Group Metals business unit).

Copper production increased by 2% to 169,700 tonnes, driven by strong performance at Los Bronces, partly offset by lower grade at Collahuasi.

Production from Los Bronces increased by 5% to 84,400 tonnes, with higher water availability as a result of water-management initiatives resulting in a 32% increase in plant throughput, partially offset by planned lower grade (0.68% vs 0.85%).

At Collahuasi, attributable production decreased by 2% to 74,300 tonnes, due to slightly lower grade (1.29% vs 1.31%) and copper recovery (91.3% vs 92.0%).

Production from El Soldado increased by 6% to 11,000 tonnes.

Sales volumes in H1 2021 were impacted by temporary port closures in Chile due to heavy tidal swells limiting vessel availability in the last two weeks of June. The H1 2021 average realised price of 460c/lb includes 181,072 tonnes of provisionally priced copper at an average price of 425c/lb.

Full Year Guidance

Production guidance is tightened to 650,000-680,000 tonnes (previously 640,000-680,000 tonnes), subject to water availability and the extent of any Covid-19 related disruption.

Copper⁽¹⁾	Q2	Q1	Q4	Q3	Q2	Q2 2021 vs. Q2 2020		Q2 2021 vs. Q1 2021		H1	H1	H1 2021 vs. H1 2020
Copper⁽¹⁾	2021	2021	2020	2020	2020	Q2 2021 vs. Q2 2020		Q2 2021 vs. Q1 2021		2021	2020	H1 2021 vs. H1 2020
Los Bronces mine⁽²⁾
Ore mined	11,403,100	10,812,400	11,546,300	8,414,600	9,237,400	23	%	5	%	22,215,500	19,250,400	15	%
Ore processed - Sulphide	13,168,200	11,520,400	13,031,300	11,956,800	9,987,200	32	%	14	%	24,688,600	17,046,700	45	%
Ore grade processed - Sulphide (% TCu)⁽³⁾	0.68	0.72	0.77	0.73	0.85	(20)	%	(6)	%	0.70	0.90	(22)	%
Production - Copper cathode	9,800	9,900	10,200	9,300	9,900	(1)	%	(1)	%	19,700	19,800	(1)	%
Production - Copper in concentrate	74,600	68,900	85,700	70,100	70,800	5	%	8	%	143,500	129,600	11	%
Total production	84,400	78,800	95,900	79,400	80,700	5	%	7	%	163,200	149,400	9	%
Collahuasi 100% basis (Anglo American share 44%)
Ore mined	26,943,000	21,220,300	18,110,000	16,412,100	18,035,100	49	%	27	%	48,163,300	37,437,100	29	%
Ore processed - Sulphide	14,334,300	14,441,600	12,928,700	14,612,300	14,192,800	1	%	(1)	%	28,775,900	28,290,600	2	%
Ore grade processed - Sulphide (% TCu)⁽³⁾	1.29	1.26	1.18	1.27	1.31	(2)	%	2	%	1.27	1.26	1	%
Production - Copper in concentrate	168,800	162,800	134,600	171,500	172,000	(2)	%	4	%	331,600	323,000	3	%
Anglo American's 44% share of copper production for Collahuasi	74,300	71,600	59,200	75,500	75,700	(2)	%	4	%	145,900	142,200	3	%
El Soldado mine⁽²⁾
Ore mined	1,796,600	1,708,600	1,982,000	1,885,100	1,378,100	30	%	5	%	3,505,200	3,293,400	6	%
Ore processed - Sulphide	1,834,800	1,755,100	1,902,500	1,788,700	1,771,600	4	%	5	%	3,589,900	3,230,500	11	%
Ore grade processed - Sulphide (% TCu)⁽³⁾	0.75	0.70	0.84	0.78	0.76	(1)	%	7	%	0.73	0.87	(16)	%
Production - Copper in concentrate	11,000	9,900	12,700	10,800	10,400	6	%	11	%	20,900	22,300	(6)	%
Chagres Smelter⁽²⁾
Ore smelted⁽⁴⁾	25,400	23,200	29,800	26,700	24,300	5	%	9	%	48,600	55,100	(12)	%
Production	24,600	22,600	29,000	26,000	23,700	4	%	9	%	47,200	53,700	(12)	%
Total copper production⁽⁵⁾	169,700	160,300	167,800	165,700	166,800	2	%	6	%	330,000	313,900	5	%
Total payable copper production	162,600	154,300	161,200	159,200	160,300	1	%	5	%	316,900	302,000	5	%
Total sales volumes	157,700	147,700	178,600	176,100	154,200	2	%	7	%	305,400	293,800	4	%
Total payable sales volumes	149,200	143,200	172,600	167,900	148,200	1	%	4	%	292,400	282,500	4	%
Third party sales⁽⁶⁾	82,800	74,000	133,400	112,600	130,800	(37)	%	12	%	156,800	207,100	(24)	%

(1) Excludes copper production from the Platinum Group Metals business unit. Units shown are tonnes unless stated otherwise.

(2) Anglo American ownership interest of Los Bronces, El Soldado and the Chagres Smelter is 50.1%. Production is stated at 100% as Anglo American consolidates these operations.

(3) TCu = total copper.

(4) Copper contained basis.

(5) Total copper production includes Anglo American's 44% interest in Collahuasi.

(6) Relates to sales of copper not produced by Anglo American operations.

PLATINUM GROUP METALS (PGMs)

PGMs 000 oz⁽¹⁾	Q2	Q2	Q2 2021 vs. Q2 2020	Q1	Q2 2021 vs. Q1 2021	H1	H1	H1 2021 vs. H1 2020
PGMs 000 oz⁽¹⁾	2021	2020	Q2 2021 vs. Q2 2020	2021	Q2 2021 vs. Q1 2021	2021	2020	H1 2021 vs. H1 2020
Metal in concentrate production	1,057.9	665.1	59%	1,021.2	4%	2,079.1	1,620.0	28%
Own mined⁽²⁾	709.2	430.2	65%	694.9	2%	1,404.1	1,084.8	29%
Purchase of concentrate (POC)⁽³⁾	348.7	234.9	48%	326.3	7%	675.0	535.2	26%
Refined production⁽⁴⁾	1,353.7	407.0	233%	973.0	39%	2,326.7	1,019.2	128%

(1) Ounces refer to troy ounces. PGMs is 5E+Au (platinum, palladium, rhodium, ruthenium and iridium plus gold).

(2) Includes managed operations and 50% of joint operation production.

(3) Includes the other 50% of joint operation production, as well as the purchase of concentrate from third parties.

(4) Refined production excludes toll refined material.

Metal in concentrate production

Own mined production increased by 65% to 709,200 ounces, following a strong recovery from the Covid-19 lockdowns in Q2 2020. Production at Mogalakwena increased by 11%, reflecting higher throughput. Production at Amandelbult and the joint ventures increased by 270% to 185,300 ounces and 112% to 107,800 ounces, respectively, as a result of the year-on-year recovery from Covid-19.

Purchase of concentrate increased by 48% to 348,700 ounces, also largely due to the year-on-year recovery from Covid-19.

Refined production

Refined production increased by 233% to 1,353,700 ounces, reflecting strong performance from the ACP Phase A unit following its successful start-up in November 2020. The ACP Phase B rebuild is on schedule for completion in H2 2021.

Sales

Sales volumes increased by 162%, driven by higher refined production.

The H1 2021 average realised basket price of $2,884/PGM ounce reflects strong prices, particularly for rhodium and the minor metals, partly offset by higher than normal sales volumes of lower priced ruthenium.

Full Year Guidance

Production guidance (metal in concentrate) is tightened to 4.2-4.4 million ounces⁽¹⁾ (previously 4.2-4.6 million ounces). Refined production guidance is tightened to 4.8-5.0 million ounces⁽²⁾ (previously 4.6-5.0 million ounces), subject to the impact of Eskom load-shedding. Both are subject to the extent of further Covid-19 related disruption.

(1) Metal in concentrate production is expected to be 1.9-2.0 million ounces of platinum, 1.35-1.40 million ounces of palladium and 0.95-1.0 million ounces of other PGMs and gold.

(2) Refined production is expected to be 2.2-2.3 million ounces of platinum, 1.55-1.60 million ounces of palladium and 1.05-1.1 million ounces of other PGMs and gold.

	Q2	Q1	Q4	Q3	Q2	Q2 2021 vs. Q2 2020		Q2 2021 vs. Q1 2021		H1	H1	H1 2021 vs. H1 2020
	2021	2021	2020	2020	2020	Q2 2021 vs. Q2 2020		Q2 2021 vs. Q1 2021		2021	2020	H1 2021 vs. H1 2020
M&C PGMs production (000 oz)⁽¹⁾	1,057.9	1,021.2	1,076.1	1,112.8	665.1	59	%	4	%	2,079.1	1,620.0	28	%
Own mined	709.2	694.9	716.9	747.3	430.2	65	%	2	%	1,404.1	1,084.8	29	%
Mogalakwena	308.3	329.1	306.7	315.0	277.6	11	%	(6)	%	637.4	559.9	14	%
Amandelbult	185.3	156.0	185.5	204.8	50.1	270	%	19	%	341.3	217.8	57	%
Unki	47.9	50.9	55.8	60.0	31.3	53	%	(6)	%	98.8	80.3	23	%
Mototolo	59.9	58.6	69.8	72.2	20.4	194	%	2	%	118.5	81.6	45	%
Joint ventures⁽²⁾	107.8	100.3	99.1	95.3	50.8	112	%	7	%	208.1	145.2	43	%
Purchase of concentrate	348.7	326.3	359.2	365.5	234.9	48	%	7	%	675.0	535.2	26	%
Joint ventures⁽²⁾	107.8	100.3	99.0	95.3	50.8	112	%	7	%	208.1	145.2	43	%
Third parties	240.9	226.0	260.2	270.2	184.1	31	%	7	%	466.9	390.0	20	%
Refined PGMs production (000 oz)⁽¹⁾⁽³⁾	1,353.7	973.0	673.1	1,020.7	407.0	233	%	39	%	2,326.7	1,019.2	128	%
By metal:
Platinum	625.7	457.8	296.4	503.8	160.6	290	%	37	%	1,083.5	400.9	170	%
Palladium	427.5	317.0	206.8	354.1	147.4	190	%	35	%	744.5	344.5	116	%
Rhodium	94.3	63.0	47.1	48.9	30.6	208	%	50	%	157.3	77.9	102	%
Other PGMs and gold	206.2	135.2	122.8	113.9	68.4	201	%	53	%	341.4	195.9	74	%
Nickel (tonnes)	5,800	4,800	3,700	5,000	2,000	190	%	21	%	10,600	5,100	108	%
Tolled material (000 oz)⁽⁴⁾	153.8	175.9	146.5	129.4	96.0	60	%	(13)	%	329.7	227.6	45	%
PGMs sales from production (000 oz)⁽¹⁾⁽⁵⁾	1,437.1	1,131.1	754.3	884.9	548.0	162	%	27	%	2,568.2	1,229.3	109	%
Third party PGMs sales (000 oz)⁽¹⁾⁽⁶⁾	116.1	221.5	370.8	341.0	210.5	(45)	%	(48)	%	337.6	459.1	(26)	%
4E head grade (g/t milled)⁽⁷⁾	3.48	3.54	3.67	3.65	3.44	1	%	(2)	%	3.51	3.44	2	%

(1) Ounces refer to troy ounces. PGMs is 5E+Au (platinum, palladium, rhodium, ruthenium and iridium plus gold).

(2) The joint operations are Modikwa and Kroondal. Platinum owns 50% of these operations, which is presented under 'Own mined' production, and purchases the remaining 50% of production, which is presented under 'Purchase of concentrate'.

(3) Refined production excludes toll material.

(4) Ounces refer to troy ounces. Tolled volume measured as the combined content of: platinum, palladium, rhodium and gold, reflecting the tolling agreements in place.

(5) PGMs sales volumes from production are generally ~65% own mined and ~35% purchases of concentrate though this may vary from quarter to quarter.

(6) Relates to sales of metal not produced by Anglo American operations.

(7) 4E: the grade measured as the combined content of: platinum, palladium, rhodium and gold, excludes tolled material. Minor metals are excluded due to variability.

IRON ORE

Iron Ore (000 t)	Q2	Q2	Q2 2021 vs. Q2 2020		Q1	Q2 2021 vs. Q1 2021		H1	H1	H1 2021 vs. H1 2020
Iron Ore (000 t)	2021	2020	Q2 2021 vs. Q2 2020		2021	Q2 2021 vs. Q1 2021		2021	2020	H1 2021 vs. H1 2020
Iron Ore⁽¹⁾	15,695	14,813	6	%	16,173	(3)	%	31,869	30,842	3	%
Kumba⁽²⁾	9,818	8,615	14	%	10,555	(7)	%	20,372	18,219	12	%
Minas-Rio⁽³⁾	5,878	6,198	(5)	%	5,619	5	%	11,496	12,622	(9)	%

(1) Total iron ore is the sum of Kumba and Minas-Rio.

(2) Volumes are reported as wet metric tonnes. Product is shipped with ~1.6% moisture.

(3) Volumes are reported as wet metric tonnes. Product is shipped with ~9% moisture.

Iron ore production increased by 6% to 15.7 million tonnes, driven by a 14% increase at Kumba, partly offset by a 5% decrease at Minas-Rio.

Kumba - Total production increased by 14% to 9.8 million tonnes reflecting the effect of Covid-19 lockdowns in Q2 2020, and despite reduced Q2 2021 production in response to high stock levels at the mines following rail constraints in Q1 2021. Production at Sishen increased by 17% to 6.9 million tonnes, while Kolomela production increased by 7% to 2.9 million tonnes.

Export sales increased by 14% to 9.4 million tonnes⁽¹⁾, reflecting the increase in production.

The H1 2021 average lump:fines ratio in the Kumba product was 69:31 (H1 2020: 65:35), while the Fe content averaged 64.1% (H1 2020: 64.4%).

The H1 2021 average realised price of $216/tonne (FOB South Africa, wet basis) was higher than the 62% Fe benchmark price of $163/tonne (FOB South Africa, adjusted for freight and moisture) due to the lump and Fe content quality premiums that the Kumba products attract in the market, as well as timing on provisionally priced volumes.

Minas-Rio - Production decreased by 5% to 5.9 million tonnes due to further unplanned maintenance at the beneficiation plant that is now complete, with the majority of the volumes expected to be recovered during the remainder of the year.

The H1 2021 average realised price of $200/tonne (FOB Brazil, wet basis) was higher than the Metal Bulletin 66 price of $165/tonne (FOB Brazil, adjusted for freight and moisture), reflecting the premium quality of the product, including higher (~67%) Fe content, and timing on provisionally priced volumes.

Full Year Guidance

Iron ore production guidance (wet basis) is tightened to 64.5-66.5 million tonnes (previously 64.5-67.5 million tonnes) (Kumba 40.5-41.5 million tonnes; Minas-Rio 24-25 million tonnes (previously 24-26 million tonnes)), subject to the extent of further Covid-19 related disruption, and rail performance at Kumba.

(1) Sales volumes are reported on a wet basis and differ to Kumba's standalone results due to sales to other Group companies.

Iron Ore (tonnes)	Q2	Q1	Q4	Q3	Q2	Q2 2021 vs. Q2 2020		Q2 2021 vs. Q1 2021		H1	H1	H1 2021 vs. H1 2020
Iron Ore (tonnes)	2021	2021	2020	2020	2020	Q2 2021 vs. Q2 2020		Q2 2021 vs. Q1 2021		2021	2020	H1 2021 vs. H1 2020
Iron Ore production⁽¹⁾	15,695,300	16,173,400	16,183,200	14,677,400	14,812,500	6	%	(3)	%	31,868,700	30,841,500	3	%
Iron Ore sales⁽¹⁾	14,973,600	15,716,400	16,600,200	15,861,400	14,828,700	1	%	(5)	%	30,690,000	31,779,500	(3)	%

Kumba production	9,817,600	10,554,700	9,717,600	9,683,600	8,614,500	14	%	(7)	%	20,372,300	18,219,400	12	%
Lump	6,723,700	7,156,100	6,589,100	6,592,200	5,803,900	16	%	(6)	%	13,879,800	12,297,000	13	%
Fines	3,093,900	3,398,600	3,128,500	3,091,400	2,810,600	10	%	(9)	%	6,492,500	5,922,400	10	%
Kumba production by mine
Sishen	6,876,800	7,071,200	6,583,400	6,615,300	5,877,400	17	%	(3)	%	13,948,000	12,565,300	11	%
Kolomela	2,940,800	3,483,500	3,134,200	3,068,300	2,737,100	7	%	(16)	%	6,424,300	5,654,100	14	%
Kumba sales volumes⁽²⁾	9,406,000	10,230,200	10,285,700	11,076,800	8,217,100	14	%	(8)	%	19,636,200	19,086,700	3	%
Export iron ore⁽²⁾	9,406,000	10,123,100	10,285,700	11,076,800	8,217,100	14	%	(7)	%	19,529,100	18,729,000	4	%
Domestic iron ore	-	107,100	-	-	-	n/a		n/a		107,100	357,700	(70)	%

Minas-Rio production
Pellet feed (wet basis)	5,877,700	5,618,700	6,465,600	4,993,800	6,198,000	(5)	%	5	%	11,496,400	12,622,100	(9)	%
Minas-Rio sales volumes
Export - pellet feed (wet basis)	5,567,600	5,486,200	6,314,500	4,784,600	6,611,600	(16)	%	1	%	11,053,800	12,692,800	(13)	%

(1) Total iron ore is the sum of Kumba and Minas-Rio and reported in wet metric tonnes. Kumba product is shipped with ~1.6% moisture and Minas-Rio product is shipped with ~9% moisture.

(2) Sales volumes differ to Kumba's standalone results due to sales to other Group companies.

METALLURGICAL COAL

Metallurgical Coal⁽¹⁾ (000 t)	Q2	Q2	Q2 2021 vs. Q2 2020		Q1	Q2 2021 vs. Q1 2021		H1	H1	H1 2021 vs. H1 2020
Metallurgical Coal⁽¹⁾ (000 t)	2021	2020	Q2 2021 vs. Q2 2020		2021	Q2 2021 vs. Q1 2021		2021	2020	H1 2021 vs. H1 2020
Metallurgical Coal (Australia)	2,969	3,977	(25)	%	3,279	(9)	%	6,247	7,803	(20)	%

(1) Anglo American's attributable share of production.

Export metallurgical coal production was 3.0 million tonnes, down 25% due to the continued suspension of operations at Grosvenor following the underground incident in May 2020, as well as the suspension of Moranbah for most of the quarter. Open cut operations are returning towards pre-Covid-19 production levels having been scaled back at Dawson and Capcoal since mid-2020 in response to reduced demand for the products.

Development activities at Grosvenor began in early June as part of the mine's staged approach to restarting longwall mining operations towards the end of 2021.

Longwall mining operations restarted at Moranbah on 3 June 2021, following the suspension from 21 February 2021 in response to elevated gas levels.

As a result of the lower volumes, the H1 2021 unit cost is expected to be circa $124/tonne.

The ratio of hard coking coal production to PCI/semi-soft coking coal was 78:22, lower than in Q2 2020 (81:19), due to a lower proportion of product coming from the underground operations.

The H1 2021 average realised price for hard coking coal was $117/tonne, lower than the benchmark price of $132/tonne as sales consisted of a lower proportion of premium quality hard coking coal from Moranbah and Grosvenor.

Full Year Guidance

Production guidance for metallurgical coal is unchanged at 14-16 million tonnes, subject to the extent of any Covid-19 related disruption.

Coal, by product (tonnes)⁽¹⁾	Q2	Q1	Q4	Q3	Q2	Q2 2021 vs. Q2 2020		Q2 2021 vs. Q1 2021		H1	H1	H1 2021 vs. H1 2020
Coal, by product (tonnes)⁽¹⁾	2021	2021	2020	2020	2020	Q2 2021 vs. Q2 2020		Q2 2021 vs. Q1 2021		2021	2020	H1 2021 vs. H1 2020
Production volumes
Metallurgical Coal	2,968,600	3,278,500	4,182,400	4,836,100	3,977,200	(25)	%	(9)	%	6,247,100	7,803,400	(20)	%
Hard Coking Coal	2,319,500	2,511,200	3,221,200	3,969,100	3,221,500	(28)	%	(8)	%	4,830,700	6,233,700	(23)	%
PCI / SSCC	649,100	767,300	961,200	867,000	755,700	(14)	%	(15)	%	1,416,400	1,569,700	(10)	%
Export thermal Coal	519,000	372,400	562,300	587,000	468,000	11	%	39	%	891,400	871,300	2	%
Sales volumes
Metallurgical Coal	2,856,300	3,112,300	4,318,300	4,818,000	3,901,300	(27)	%	(8)	%	5,968,600	7,751,700	(23)	%
Hard Coking Coal	2,246,200	2,462,100	3,536,900	4,130,000	3,305,000	(32)	%	(9)	%	4,708,300	6,172,400	(24)	%
PCI / SSCC	610,100	650,200	781,400	688,000	596,300	2	%	(6)	%	1,260,300	1,579,300	(20)	%
Export thermal Coal	572,000	492,000	725,800	500,100	651,700	(12)	%	16	%	1,064,000	1,058,900	0	%
(1) Anglo American's attributable share of production.

Metallurgical coal, by operation (tonnes)⁽¹⁾	Q2	Q1	Q4	Q3	Q2	Q2 2021 vs. Q2 2020		Q2 2021 vs. Q1 2021		H1	H1	H1 2021 vs. H1 2020
Metallurgical coal, by operation (tonnes)⁽¹⁾	2021	2021	2020	2020	2020	Q2 2021 vs. Q2 2020		Q2 2021 vs. Q1 2021		2021	2020	H1 2021 vs. H1 2020
Metallurgical Coal	2,968,600	3,278,500	4,182,400	4,836,100	3,977,200	(25)	%	(9)	%	6,247,100	7,803,400	(20)	%
Moranbah	56,600	595,100	1,209,200	2,008,500	761,800	(93)	%	(90)	%	651,700	1,212,600	(46)	%
Grosvenor	-	-	-	4,500	560,900	n/a		n/a		-	1,101,800	n/a
Capcoal (incl. Grasstree)	1,554,100	1,346,600	1,680,900	1,328,800	1,221,900	27	%	15	%	2,900,700	2,605,200	11	%
Dawson	569,800	600,600	461,200	588,300	638,400	(11)	%	(5)	%	1,170,400	1,379,600	(15)	%
Jellinbah	788,100	736,200	831,100	906,000	794,200	(1)	%	7	%	1,524,300	1,504,200	1	%
(1) Anglo American's attributable share of production.

NICKEL

Nickel (tonnes)	Q2	Q2	Q2 2021 vs. Q2 2020		Q1	Q2 2021 vs. Q1 2021		H1	H1	H1 2021 vs. H1 2020
Nickel (tonnes)	2021	2020	Q2 2021 vs. Q2 2020		2021	Q2 2021 vs. Q1 2021		2021	2020	H1 2021 vs. H1 2020
Nickel	10,600	10,800	(2)	%	10,100	5	%	20,700	21,700	(5)	%

Nickel production decreased by 2% to 10,600 tonnes, reflecting planned lower ore grade.

Full Year Guidance

Production guidance is unchanged at 42,000-44,000 tonnes, subject to the extent of further Covid-19 related disruption.

Nickel (tonnes)	Q2	Q1	Q4	Q3	Q2	Q2 2021 vs. Q2 2020		Q2 2021 vs. Q1 2021		H1	H1	H1 2021 vs. H1 2020
Nickel (tonnes)	2021	2021	2020	2020	2020	Q2 2021 vs. Q2 2020		Q2 2021 vs. Q1 2021		2021	2020	H1 2021 vs. H1 2020
Barro Alto
Ore mined	976,200	628,500	1,001,600	1,712,200	1,166,200	(16)	%	55	%	1,604,700	1,484,200	8	%
Ore processed	641,500	616,700	628,000	536,600	625,900	2	%	4	%	1,258,200	1,236,000	2	%
Ore grade processed - %Ni	1.56	1.53	1.71	1.72	1.60	(3)	%	2	%	1.55	1.60	(3)	%
Production	8,800	8,200	9,500	8,000	8,800	0	%	7	%	17,000	17,500	(3)	%
Codemin
Ore mined	-	-	-	3,200	-	n/a		n/a		-	-	n/a
Ore processed	136,400	136,600	147,600	142,100	145,800	(6)	%	0	%	273,000	291,600	(6)	%
Ore grade processed - %Ni	1.52	1.51	1.71	1.71	1.59	(4)	%	1	%	1.52	1.61	(6)	%
Production	1,800	1,900	2,200	2,200	2,000	(10)	%	(5)	%	3,700	4,200	(12)	%
Total Nickel production⁽¹⁾	10,600	10,100	11,700	10,200	10,800	(2)	%	5	%	20,700	21,700	(5)	%
Sales volumes	9,800	10,200	11,700	10,900	9,800	0	%	(4)	%	20,000	20,400	(2)	%

(1) Excludes nickel production from the Platinum Group Metals business unit.

MANGANESE

Manganese (000 t)	Q2	Q2	Q2 2021 vs. Q2 2020		Q1	Q2 2021 vs. Q1 2021		H1	H1	H1 2021 vs. H1 2020
Manganese (000 t)	2021	2020	Q2 2021 vs. Q2 2020		2021	Q2 2021 vs. Q1 2021		2021	2020	H1 2021 vs. H1 2020
Manganese ore⁽¹⁾	941	796	18	%	905	4	%	1,845	1,639	13	%
Manganese alloys⁽¹⁾⁽²⁾	-	23	n/a		-	n/a		-	48	n/a

(1) Saleable production.

(2) Production includes medium carbon ferro-manganese.

Manganese ore production increased by 18% to 940,500 tonnes, reflecting the impact of Covid-19 lockdowns in South Africa in Q2 2020.

There was no manganese alloy production as the South African smelter has been on care and maintenance since the Covid-19 lockdown. The TEMCO smelter in Australia was sold at the start of 2021.

Manganese (tonnes)	Q2	Q1	Q4	Q3	Q2	Q2 2021 vs. Q2 2020		Q2 2021 vs. Q1 2021		H1	H1	H1 2021 vs. H1 2020
Manganese (tonnes)	2021	2021	2020	2020	2020	Q2 2021 vs. Q2 2020		Q2 2021 vs. Q1 2021		2021	2020	H1 2021 vs. H1 2020
Samancor production
Manganese ore⁽¹⁾	940,500	904,500	942,400	938,700	796,000	18	%	4	%	1,845,000	1,638,900	13	%
Manganese alloys⁽¹⁾⁽²⁾	-	-	14,600	18,300	23,200	n/a		n/a		-	47,600	n/a
Samancor sales volumes
Manganese ore	980,200	878,200	936,800	976,200	810,700	21	%	12	%	1,858,400	1,616,100	15	%
Manganese alloys	-	670	24,500	22,700	23,400	n/a		n/a		670	56,200	n/a

(1) Saleable production.

(2) Production includes medium carbon ferro-manganese.

THERMAL COAL

Thermal Coal⁽¹⁾ (000 t)	Q2	Q2	Q2 2021 vs. Q2 2020		Q1	Q2 2021 vs. Q1 2021		H1	H1	H1 2021 vs. H1 2020
Thermal Coal⁽¹⁾ (000 t)	2021	2020	Q2 2021 vs. Q2 2020		2021	Q2 2021 vs. Q1 2021		2021	2020	H1 2021 vs. H1 2020
Export Thermal Coal (South Africa)⁽²⁾	2,534	3,588	(29)	%	3,149	(20)	%	5,682	7,783	(27)	%
Export Thermal Coal (Colombia)⁽³⁾	1,784	767	132	%	1,795	(1)	%	3,579	2,745	30	%

(1) Anglo American's attributable share of production.

(2) Includes export primary production, secondary production sold into export markets and production sold domestically at export parity pricing until the demerger of the South Africa thermal coal operations effective 4 June 2021.

(3) Anglo American's attributable share of Cerrejón production is 33.3%. The sale of Anglo American's interest in Cerrejón is expected to complete in H1 2022, subject to regulatory approvals. The agreement is effective 31 December 2020 and, therefore, economic benefits of production from 1 January 2021 onwards will not accrue to Anglo American.

Thermal Coal, South Africa - Export thermal coal production decreased by 29% to 2.5 million tonnes, primarily due to the demerger of the South Africa thermal coal operations on 4 June 2021.

Thermal Coal, Colombia - Attributable export thermal coal production more than doubled to 1.8 million tonnes, reflecting the impact of Covid-19 lockdowns in Q2 2020.

The H1 2021 weighted average realised price for export thermal coal from South Africa and Colombia was $72/tonne (South Africa: $77/tonne; Colombia: $65/tonne). This was 16% lower than the weighted average quoted FOB price, largely due to energy content adjustments relative to the industry benchmark.

Full Year Guidance

Following the demerger of the South Africa thermal coal operations on 4 June 2021, no further production will be reported by Anglo American. Product purchased from Thungela under the offtake agreement will be reported as third party.

The sale of Anglo American's 33% interest in Cerrejón is expected to complete in H1 2022, subject to regulatory approvals. The agreement is effective on the 31 December 2020 and, therefore, economic benefits of production from 1 January 2021 onwards will not accrue to Anglo American.

Thermal Coal (tonnes)⁽¹⁾	Q2	Q1	Q4	Q3	Q2	Q2 2021 vs. Q2 2020		Q2 2021 vs. Q1 2021		H1	H1	H1 2021 vs. H1 2020
Thermal Coal (tonnes)⁽¹⁾	2021	2021	2020	2020	2020	Q2 2021 vs. Q2 2020		Q2 2021 vs. Q1 2021		2021	2020	H1 2021 vs. H1 2020
Production volumes
Thermal Coal	6,742,700	8,080,400	8,059,500	9,575,400	8,293,000	(19)	%	(17)	%	14,823,100	16,973,400	(13)	%
Export - South Africa⁽²⁾	2,533,600	3,148,500	4,085,000	4,595,400	3,587,600	(29)	%	(20)	%	5,682,100	7,782,700	(27)	%
Export - Colombia⁽³⁾	1,784,000	1,794,900	347,000	1,037,700	767,400	132	%	(1)	%	3,578,900	2,745,300	30	%
Domestic - South Africa	2,425,100	3,137,000	3,627,500	3,942,300	3,938,000	(38)	%	(23)	%	5,562,100	6,445,400	(14)	%
Sales volumes
Thermal Coal	9,743,900	10,701,500	10,086,000	10,854,100	10,502,900	(7)	%	(9)	%	20,445,400	21,892,000	(7)	%
Export - South Africa⁽²⁾	2,250,100	3,085,200	4,872,100	4,512,700	3,264,300	(31)	%	(27)	%	5,335,300	7,188,300	(26)	%
Export - Colombia⁽³⁾	1,618,700	1,746,300	369,900	993,800	1,142,500	42	%	(7)	%	3,365,000	3,170,600	6	%
Domestic - South Africa	2,325,300	3,023,800	2,994,600	3,407,700	3,558,700	(35)	%	(23)	%	5,349,100	5,967,100	(10)	%
Third party sales	3,549,800	2,846,200	1,849,400	1,939,900	2,537,400	40	%	25	%	6,396,000	5,566,000	15	%

(1) Anglo American's attributable share of production.

(3) Anglo American's attributable share of Cerrejón production is 33.3%. The sale of Anglo American's interest in Cerrejón is expected to complete in H1 2022, subject to regulatory approvals. The agreement is effective 31 December 2020 and, therefore, economic benefits of production and sales, from 1 January 2021 onwards will not accrue to Anglo American.

Production, by operation (tonnes)⁽¹⁾	Q2	Q1	Q4	Q3	Q2	Q2 2021 vs. Q2 2020		Q2 2021 vs. Q1 2021		H1	H1	H1 2021 vs. H1 2020
Production, by operation (tonnes)⁽¹⁾	2021	2021	2020	2020	2020	Q2 2021 vs. Q2 2020		Q2 2021 vs. Q1 2021		2021	2020	H1 2021 vs. H1 2020
Thermal Coal - South Africa⁽²⁾	4,958,700	6,285,500	7,712,500	8,537,700	7,525,600	(34)	%	(21)	%	11,244,200	14,228,100	(21)	%
Goedehoop	1,320,500	1,704,000	1,907,500	1,816,600	1,192,500	11	%	(23)	%	3,024,500	2,399,900	26	%
Greenside	632,700	768,200	938,000	1,199,000	1,179,100	(46)	%	(18)	%	1,400,900	2,357,000	(41)	%
Zibulo	841,000	1,204,800	1,099,900	1,429,900	1,331,100	(37)	%	(30)	%	2,045,800	2,622,800	(22)	%
Khwezela	633,500	529,900	1,444,200	1,735,100	1,383,700	(54)	%	20	%	1,163,400	3,003,100	(61)	%
Mafube	282,600	446,400	491,300	503,100	339,200	(17)	%	(37)	%	729,000	823,800	(12)	%
Other⁽³⁾	1,248,400	1,632,200	1,831,600	1,854,000	2,100,000	(41)	%	(24)	%	2,880,600	3,021,500	(5)	%
Thermal Coal - Colombia (Cerrejón)⁽⁴⁾	1,784,000	1,794,900	347,000	1,037,700	767,400	132	%	(1)	%	3,578,900	2,745,300	30	%

(1) Anglo American's attributable share of production.

(2) Export and domestic production until the demerger of the South Africa thermal coal operations effective on 4 June 2021; Isibonelo and Rietvlei produce exclusively domestic volumes.

(3) Other includes Isibonelo and Rietvlei.

(4) Anglo American's attributable share of Cerrejón production is 33.3%. The sale of Anglo American's interest in Cerrejón is expected to complete in H1 2022, subject to regulatory approvals. The agreement is effective 31 December 2020 and, therefore, economic benefits of production from 1 January 2021 onwards will not accrue to Anglo American.

EXPLORATION AND EVALUATION

Exploration and evaluation expenditure increased by 56% to $67 million. Exploration expenditure increased by 39% to $25 million driven by increased drilling at Sakatti (Copper/PGMs) in Finland and Iron Ore, reflecting the impact of Covid-19 in Q2 2020. Evaluation expenditure increased by 68% to $42 million, with increased spend at Metallurgical Coal, Sakatti (Copper/PGMs) and Diamonds.

NOTES

• This Production Report for the quarter ended 30 June 2021 is unaudited.

• Production figures are sometimes more precise than the rounded numbers shown in this Production Report.

• Copper equivalent production shows changes in underlying production volume. It is calculated by expressing each product's volume as revenue, subsequently converting the revenue into copper equivalent units by dividing by the copper price (per tonne). Long-term forecast prices are used, in order that period-on-period comparisons exclude any impact for movements in price.

• Please refer to page 18 for information on forward-looking statements.

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.

For further information, please contact:

Media

Investors

James Wyatt-Tilby

[email protected]

Tel: +44 (0)20 7968 8759

Marcelo Esquivel

[email protected]

Tel: +44 (0)20 7968 8891

Katie Ryall

[email protected]

Tel: +44 (0)20 7968 8935

South Africa

Nevashnee Naicker

[email protected]

Tel: +27 (0)71 164 5719

Sibusiso Tshabalala

[email protected]

Tel: +27 (0)11 638 2175

Nomonde Ndwalaza

[email protected]

Tel: +27 (0)11 638 0228

Paul Galloway

[email protected]

Tel: +44 (0)20 7968 8718

Emma Waterworth

[email protected]

Tel: +44 (0)20 7968 8574

Michelle Jarman

[email protected]

Tel: +44 (0)20 7968 1494

Notes to editors:

Anglo American is a leading global mining company and our products are the essential ingredients in almost every aspect of modern life. Our portfolio of world-class competitive operations, with a broad range of future development options, provides many of the future-enabling metals and minerals for a cleaner, greener, more sustainable world and that meet the fast growing every day demands of billions of consumers. With our people at the heart of our business, we use innovative practices and the latest technologies to discover new resources and to mine, process, move and market our products to our customers - safely and sustainably.

As a responsible producer of diamonds (through De Beers), copper, platinum group metals, premium quality iron ore and metallurgical coal for steelmaking, and nickel - 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.

Forward-looking statements and third-party information:

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 Ore Reserves and Mineral Resource estimates) and environmental, social and corporate governance goals 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, mineral resource exploration and development capabilities, recovery rates and other operational capabilities, safety, health or environmental incidents, the effects of global pandemics and outbreaks of infectious diseases, the outcome of litigation or regulatory proceedings, 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 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 announcement. 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 announcement 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 announcement is sourced from publicly available third-party sources. As such, it has not been independently verified and presents the views of those third parties, though these 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.

www.angloamerican.com

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RNS metadata

Title: Anglo American Production Report Q2 , 2021
Time: 07:00:07
Date: 20 Jul 2021
Category: Corporate updates
ID: 7442F