Wrap Text
Investor visit to Anglo American’s Bulks business
Anglo American plc (the “Company”)
Registered office: 20 Carlton House Terrace, London SW1Y 5AN
Registered number: 3564138 (incorporated in England and Wales)
Legal Entity Identifier: 549300S9XF92D1X8ME43
ISIN: GBOOB1XZS820
JSE Share Code: AGL
NSX Share Code: ANM
12 November 2019
Investor visit to Anglo American’s Bulks business
Anglo American plc (“Anglo American”) is this week hosting an analyst and investor visit to
Queensland, Australia to provide a detailed update on Anglo American’s Bulks businesses. The
update will cover Anglo American’s world-class steelmaking ingredient businesses of Kumba Iron
Ore, Minas-Rio, and the Metallurgical Coal operations in Australia, as well as its nickel and export
thermal coal operations.
Seamus French, CEO of Bulk Commodities at Anglo American, said: “The high quality and
significantly improved operational performance of Anglo American’s Bulks businesses continue
to deliver very attractive margins and returns. We are today upgrading our 2019 production
guidance for Minas-Rio by a further 10% – with a proportionate decrease in unit costs – while
also providing volume guidance for the next three financial years, as well as long term volume
and unit cost potential.
“We believe our iron ore, met coal and nickel businesses are well set to meet future demand
trends, particularly in relation to the high quality of their products. Through attractive resource
characteristics, beneficiation and blending, we offer our customers a reliable supply of niche
steelmaking products with low levels of contaminants, thereby helping steel plants meet ever
tighter emissions standards. For example, in the first half of 2019 our iron ore saw an average
Fe content of more than 65%, above any of the other major producers, contributing towards the
sustained price premia we realise for our products.
“Looking forwards, we have a disciplined approach to growth within our portfolio, with numerous
debottlenecking and life extension opportunities in the medium term across our iron ore and met
coal assets. Combined with our ongoing focus on setting new operational performance
benchmarks and the introduction of step-change technologies aimed at safety, productivity and
a smaller environmental footprint, we see only a strengthening of our position and ability to
generate leading and sustainable returns.”
Anglo American is today providing updated 2019-2021 production guidance for its Bulks
businesses, as well as new guidance for 2022. In addition to the changes noted above, the
planned increase in metallurgical coal production is pushed back by one year due to phasing of
the wash plant expansion at Moranbah-Grosvenor.
Production guidance 2019F 2020F 2021F 2022F1
Iron ore (Minas-Rio) Mt ~23 22-24 24-26 23-25
(previously 20-22) (previously 21-23) (previously 22-24)
Iron ore (Kumba) Mt 42-43 43-44 43-44 43-44
(unchanged) (previously 43-45) (previously 43-45)
Metallurgical coal Mt 22-24 22-24 23-25 26-28
(unchanged) (previously 23-25) (previously 25-27)
1 2022F guidance has not previously been provided.
Anglo American also highlighted the long term potential, in terms of production volumes and unit
costs, for key Bulks assets, as shown below:
Long term potential Production Unit cost
Iron ore (Minas-Rio) ~30 Mt1 ~$21 / tonne FOB1
1 Wet basis
Iron ore (Kumba) 45 Mt2 ~$33 / tonne FOB2
2 Dry basis / subject to rail performance
Metallurgical coal ~30 Mt3 ~$57 / tonne FOB3
3 Excl. thermal coal. Met Coal FOB unit cost excludes royalties & study costs
The presentations that will be made during the visit will be available on the Anglo American
website http://www.angloamerican.com/investors/investor-presentations/2019.
The Company has a primary listing on the Main Market of the London Stock Exchange and
secondary listings on the Johannesburg Stock Exchange, the Botswana Stock Exchange, the
Namibia Stock Exchange and the SIX Swiss Exchange.
Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)
For further information, please contact:
Media Investors
UK UK
James Wyatt-Tilby Paul Galloway
james.wyatt-tilby@angloamerican.com paul.galloway@angloamerican.com
Tel: +44 (0)20 7968 8759 Tel: +44 (0)20 7968 8718
Marcelo Esquivel Robert Greenberg
marcelo.esquivel@angloamerican.com robert.greenberg@angloamerican.com
Tel: +44 (0)20 7968 8891 Tel: +44 (0)20 7968 2124
Katie Ryall Emma Waterworth
katie.ryall@angloamerican.com emma.waterworth@angloamerican.com
Tel: +44 (0)20 7968 8935 Tel: +44 (0)20 7968 8574
South Africa
Pranill Ramchander
pranill.ramchander@angloamerican.com
Tel: +27 (0)11 638 2592
Sibusiso Tshabalala
sibusiso.tshabalala@angloamerican.com
Tel: +27 (0)11 638 2175
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 leading global mining company 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 that enable a cleaner,
more electrified world and that meet the fast 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 – safely, responsibly and
sustainably.
As a responsible miner – of diamonds (through De Beers), copper, platinum group metals, iron
ore, coal and nickel – we are the custodians of what are precious natural resources. We work
together with our business partners and diverse stakeholders to unlock the sustainable value that
those resources represent for our shareholders, the communities and countries in which we
operate, and for society as a whole. Anglo American is re-imagining mining to improve people’s
lives.
www.angloamerican.com
Legal Entity Identifier: 549300S9XF92D1X8ME43
Date: 12/11/2019 09:00:00
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