Anglo American reports a 7% increase in total production on a copper equivalent basis for the fourth quarter of 2018, compared to the same period in 2017, excluding the effect of the stoppage at Minas-Rio.
Mark Cutifani, Chief Executive of Anglo American, said: “Our continuing focus on efficiency and productivity improvements across the business resulted in another strong quarter, adding to our consistent track record of delivery. Solid operational performance resulted in a 23% increase in production from our Copper business, more than offsetting the impact of infrastructure constraints at Kumba. We ended this successful quarter with the restart of operations at Minas-Rio and receipt of a key approval relating to the important Step 3 licence area that supports its increase in production towards design capacity.”
Highlights
De Beers production increased by 12% to 9.1 million carats due to production increases at Orapa.
Copper production increased by 23% to 183,500 tonnes, with increases at all operations, reflecting continued strong operational performance and planned higher grades.
Platinum and palladium production both increased by 3% to 602,300 ounces and 386,600 ounces respectively, driven by an improved operational performance across the majority of the portfolio.
Kumba’s iron ore production decreased by 13% to 10.2 million tonnes due to infrastructure constraints.
Metallurgical coal production increased by 15% to 5.6 million tonnes driven by productivity improvements at Moranbah and the continued Grosvenor ramp up.
Thermal coal export production decreased by 9% to 6.9 million tonnes due to the impact of rain at Cerrejón.
Minas-Rio restarted operations at the end of the quarter and also received a key approval relating to the important Step 3 licence area.
Production Summary Q4
| Q4 2018
| Q4 2017 | % vs. Q4 2017 | 2018 | 2017 | % vs. 2017 | |
| Diamonds (Mct)(2) | 9.1 | 8.1 | 12% | 35.3 | 33.5 | 6% |
| Copper (kt)(3) | 184 | 149 | 23% | 668 | 579 | 15% |
| Platinum (koz)(4) | 602 | 587 | 3% | 2,485 | 2,397 | 4% |
| Palladium (koz)(4) | 387 | 375 | 3% | 1,611 | 1,557 | 3% |
| Iron ore – Kumba (Mt) | 10.2 | 11.6 | (13)% | 43.1 | 45.0 | (4)% |
| Iron ore – Minas-Rio (Mt)(5) | 0.2 | 4.0 | (94)% | 3.4 | 16.8 | (80)% |
| Metallurgical coal (Mt) | 5.6 | 4.9 | 15% | 21.8 | 19.7 | 11% |
| Thermal coal (Mt)(6) | 6.9 | 7.6 | (9)% | 28.6 | 29.2 | (2)% |
| Nickel (kt)(7) | 11.4 | 11.4 | 0% | 42.3 | 43.8 | (3)% |
| Manganese ore (kt) | 972 | 980 | (1)% | 3,607 | 3,486 | 3% |
(1) Copper equivalent production is normalised for the Minas-Rio production stoppage in 2018. Including the Minas-Rio stoppage, production increased by 3% compared to Q4 2017.
(2) De Beers production is on a 100% basis, except for the Gahcho Kué joint venture which is on an attributable 51% basis.
(3) Contained metal basis. Reflects copper production from the Copper business unit only (excludes copper production from the Platinum Group Metals business unit).
(4) Produced ounces of metal in concentrate. Reflects own mine production and purchases.
(5) Wet basis.
(6) Reflects export production from South Africa and Colombia.
(7) Reflects nickel production from the Nickel business unit only (excludes nickel production from the Platinum Group Metals business unit).
DE BEERS
| De Beers(1) (000 carats) | Q4 2018 | Q4 2017 | Q4 2018 vs. Q4 2017 | Q3 2018 | Q4 2018 vs. Q3 2018 | 2018 | 2017 | 2018 vs. 2017 |
| Botswana (Debswana) | 6,346 | 5,504 | 15% | 5,699 | 11% | 24,132 | 22,684 | 6% |
| Namibia (Namdeb Holdings) | 505 | 488 | 3% | 460 | 10% | 2,008 | 1,805 | 11% |
| South Africa (DBCM) | 1,234 | 1,149 | 7% | 1,337 | (8)% | 4,682 | 5,208 | (10)% |
| Canada | 1,043 | 993 | 5% | 1,178 | (11)% | 4,475 | 3,757 | 19% |
| Total carats recovered | 9,128 | 8,134 | 12% | 8,674 | 5% | 35,297 | 33,454 | 6% |
Rough diamond production increased by 12% to 9.1 million carats bringing total production for 2018 to 35.3 million carats due to a planned production increase at Orapa(2) mine, although this was in the lower half of the production guidance range of 35-36 million carats.
Botswana (Debswana) production increased by 15% to 6.3 million carats. Orapa(2) production increased by 20% to 3.6 million carats driven by planned favourable grade and higher plant utilisation. Jwaneng production increased by 9% following an increase in tonnes treated.
Namibia (Namdeb Holdings) production increased by 3% to 0.5 million carats, driven by the Mafuta crawler vessel at Debmarine Namibia spending fewer days in port. This was partly offset by the land operations following the transition of Elizabeth Bay to care and maintenance.
South Africa (DBCM) production increased by 7% to 1.2 million carats as a result of planned higher grade ore at Venetia.
Canada production increased by 5% to 1.0 million carats due to higher grades at Victor as it reaches the end of its life. This was partially offset by planned lower grades at Gahcho Kué.
Rough diamond sales volumes totalled 9.9 million carats (9.3 million carats on a consolidated basis(3)) from three sales cycles, compared with 8.2 million carats (7.5 million carats on a consolidated basis(3)) from the same number of sales cycles during the equivalent period in 2017. Fourth quarter rough sales revenues increased year on year as the re-phased allocations of some lower value rough diamonds from Sight 7 (in September) were realised in Sights 9 and 10.
For the full year, rough diamond sales volumes were 4% lower at 33.7 million carats (31.7 million carats on a consolidated basis(3)) compared with 35.1 million carats (33.1 million carats on a consolidated basis(3)) in 2017. 2018 sales volumes were also lower than production, driven by lower demand for lower value rough diamonds in the second half of 2018.
The consolidated average realised price of $171/ct was 6% higher (2017: $162/ct), due to a lower proportion of lower value rough diamonds sold in 2018.
2019 Guidance
2019 production guidance is 31-33 million carats, subject to trading conditions. The lower production is driven by the process of exiting from the Venetia open pit with the underground becoming the principal source of ore from 2023. Associated with this, an increased proportion of production in 2019 is expected to come from De Beers Group’s joint venture partners, a proportion of which generates a trading margin, which is lower than the mining margin generated from own mined production.
(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.
(3) Consolidated sales volumes exclude De Beers Group’s JV partners’ 50% proportionate share of sales to entities outside De Beers Group from Diamond Trading Company Botswana and the Namibia Diamond Trading Company, which are included in total sales volume (100% basis). 2017 includes pre-commercial production sales volumes from Gahcho Kué.
| De Beers(1) | Q4 2018 | Q3 2018 | Q2 2018 | Q1 2018 | Q4 2017 | Q4 2018 vs. Q3 2018 | Q4 2018 vs. Q4 2017 | 2018 | 2017 | 2018 vs. 2017 | |
| Carats recovered (000 carats) | |||||||||||
| 100% basis (unless otherwise stated) | |||||||||||
| Jwaneng | 2,744 | 3,143 | 3,025 | 2,984 | 2,512 | (13)% | 9% | 11,896 | 11,857 | – | |
| Orapa(2) | 3,602 | 2,556 | 3,254 | 2,824 | 2,992 | 41% | 20% | 12,236 | 10,827 | 13% | |
| Botswana (Debswana) | 6,346 | 5,699 | 6,279 | 5,808 | 5,504 | 11% | 15% | 24,132 | 22,684 | 6% | |
| Debmarine Namibia | 400 | 322 | 349 | 365 | 328 | 24% | 22% | 1,436 | 1,378 | 4% | |
| Namdeb (land operations) | 105 | 138 | 166 | 163 | 160 | (24)% | (34)% | 572 | 427 | 34% | |
| Namibia (Namdeb Holdings) | 505 | 460 | 515 | 528 | 488 | 10% | 3% | 2,008 | 1,805 | 11% | |
| Venetia | 1,141 | 1,178 | 922 | 1,008 | 1,023 | (3)% | 12% | 4,249 | 4,602 | (8)% | |
| Voorspoed | 93 | 159 | 96 | 85 | 126 | (42)% | (26)% | 433 | 606 | (29)% | |
| South Africa (DBCM) | 1,234 | 1,337 | 1,018 | 1,093 | 1,149 | (8)% | 7% | 4,682 | 5,208 | (10)% | |
| Gahcho Kué (51% basis) | 789 | 927 | 985 | 838 | 830 | (15)% | (5)% | 3,539 | 3,033 | 17% | |
| Victor | 254 | 251 | 200 | 231 | 163 | 1% | 56% | 936 | 724 | 29% | |
| Canada | 1,043 | 1,178 | 1,185 | 1,069 | 993 | (11)% | 5% | 4,475 | 3,757 | 19% | |
| Total carats recovered | 9,128 | 8,674 | 8,997 | 8,498 | 8,134 | 5% | 12% | 35,297 | 33,454 | 6% | |
| Sales volumes | |||||||||||
| Total sales volume (100%) (Mct)(3) | 9.9 | 5.0 | 10.0 | 8.8 | 8.2 | 98% | 21% | 33.7 | 35.1 | (4)% | |
| Consolidated sales volume (Mct)(3) | 9.3 | 4.6 | 9.4 | 8.4 | 7.5 | 102% | 24% | 31.7 | 33.1 | (4)% | |
| Number of Sights (sales cycles) | 3 | 2 | 3 | 2 | 3 | 10 | 10 | ||||
(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.
(3) Consolidated sales volumes exclude De Beers Group’s JV partners’ 50% proportionate share of sales to entities outside De Beers Group from Diamond Trading Company Botswana and the Namibia Diamond Trading Company, which are included in total sales volume (100% basis). 2017 includes pre-commercial production sales volumes from Gahcho Kué.
COPPER
| Copper(1) (tonnes) | Q4 2018 | Q4 2017 | Q4 2018 vs. Q4 2017 | Q3 2018 | Q4 2018 vs. Q3 2018 | 2018 | 2017 | 2018 vs. 2017 |
| Los Bronces | 99,000 | 75,400 | 31% | 95,800 | 3% | 369,500 | 308,300 | 20% |
| Collahuasi (44% share) | 69,200 | 63,500 | 9% | 61,500 | 13% | 246,000 | 230,500 | 7% |
| El Soldado | 15,300 | 9,700 | 58% | 14,500 | 6% | 52,700 | 40,500 | 30% |
| Total Copper | 183,500 | 148,600 | 23% | 171,800 | 7% | 668,300 | 579,300 | 15% |
(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 23% to 183,500 tonnes, the highest since Q4 2013, with production increases at all operations and record copper in concentrate production at Collahuasi.
Production from Los Bronces increased by 31% to 99,000 tonnes, driven by continued strong mine and plant performance and planned higher grades (0.81% vs. 0.76%).
At Collahuasi, attributable production increased by 9% to 69,200 tonnes reflecting higher copper recoveries driven by the successful installation of 24 additional flotation cells in Q3.
El Soldado production increased by 58% to 15,300 tonnes due to a combination of strong mine and plant performance and planned higher grades (0.94% vs 0.65%).
Full year sales volumes were 671,600 tonnes, at an average price of 283c/lb ($6,239/t), lower than the average LME price of 296c/lb ($6,526/t) due to the impact of provisional pricing.
2019 Guidance
2019 production guidance is 630,000-660,000 tonnes.
| Copper(1) | Q4 2018 | Q3 2018 | Q2 2018 | Q1 2018 | Q4 2017 | Q4 2018 vs. Q3 2018 | Q4 2018 vs. Q4 2017 | 2018 | 2017 | 2018 vs. 2017 |
| Los Bronces mine(2) | ||||||||||
| Ore mined | 12,675,800 | 13,019,000 | 17,837,300 | 15,675,300 | 11,553,900 | (3)% | 10% | 59,207,400 | 49,339,600 | 20% |
| Ore processed – Sulphide | 12,669,900 | 13,089,300 | 12,346,700 | 12,477,100 | 10,610,600 | (3)% | 19% | 50,583,000 | 46,040,000 | 10% |
| Ore grade processed – Sulphide (% TCu)(3) | 0.81 | 0.76 | 0.76 | 0.71 | 0.76 | 7% | 7% | 0.76 | 0.71 | 7% |
| Production – Copper cathode | 10,200 | 10,300 | 10,000 | 8,500 | 9,800 | (1)% | 4% | 39,000 | 38,300 | 2% |
| Production – Copper in concentrate | 88,800 | 85,500 | 79,700 | 76,600 | 65,600 | 4% | 35% | 330,500 | 270,000 | 22% |
| Total production | 99,000 | 95,800 | 89,700 | 85,000 | 75,400 | 3% | 31% | 369,500 | 308,300 | 20% |
| Collahuasi 100% basis (Anglo American share 44%) | ||||||||||
| Ore mined | 14,781,300 | 13,791,400 | 11,454,400 | 11,859,300 | 17,478,300 | 7% | (15)% | 51,886,400 | 64,733,500 | (20)% |
| Ore processed – Sulphide | 13,638,400 | 12,332,800 | 10,605,100 | 12,894,200 | 13,658,400 | 11% | (0)% | 49,470,500 | 49,886,800 | (1)% |
| Ore grade processed – Sulphide (% TCu)(3) | 1.28 | 1.33 | 1.34 | 1.24 | 1.28 | (4)% | (0)% | 1.30 | 1.25 | 5% |
| Production – Copper cathode | – | – | – | – | – | – | – | – | 100 | (100)% |
| Production – Copper in concentrate | 157,400 | 139,700 | 124,500 | 137,600 | 144,400 | 13% | 9% | 559,100 | 523,900 | 7% |
| Total copper production for Collahuasi | 157,400 | 139,700 | 124,500 | 137,600 | 144,400 | 13% | 9% | 559,100 | 524,000 | 7% |
| Anglo American’s share of copper production for Collahuasi(4) | 69,200 | 61,500 | 54,700 | 60,600 | 63,500 | 13% | 9% | 246,000 | 230,500 | 7% |
| El Soldado mine(2) | ||||||||||
| Ore mined | 3,233,900 | 3,361,000 | 2,905,800 | 2,112,500 | 1,698,500 | (4)% | 90% | 11,613,200 | 5,338,400 | 118% |
| Ore processed – Sulphide | 1,951,600 | 2,036,000 | 1,825,000 | 1,785,600 | 1,846,600 | (4)% | 6% | 7,598,200 | 7,395,100 | 3% |
| Ore grade processed – Sulphide (% TCu)(3) | 0.94 | 0.87 | 0.90 | 0.67 | 0.65 | 8% | 45% | 0.85 | 0.69 | 23% |
| Production – Copper in concentrate | 15,300 | 14,500 | 13,600 | 9,300 | 9,700 | 6% | 58% | 52,700 | 40,500 | 30% |
| Total production | 15,300 | 14,500 | 13,600 | 9,300 | 9,700 | 6% | 58% | 52,700 | 40,500 | 30% |
| Chagres Smelter(2) | ||||||||||
| Ore smelted | 30,900 | 37,700 | 39,300 | 34,700 | 35,600 | (18)% | (13)% | 142,600 | 133,800 | 7% |
| Production | 30,100 | 36,900 | 38,400 | 33,800 | 34,700 | (18)% | (13)% | 139,200 | 130,000 | 7% |
| Total copper production(5) | 183,500 | 171,800 | 158,000 | 154,900 | 148,600 | 7% | 23% | 668,300 | 579,300 | 15% |
| Total payable copper production | 177,100 | 165,700 | 152,600 | 149,100 | 143,100 | 7% | 24% | 644,500 | 558,300 | 15% |
| Total sales volumes | 205,800 | 159,900 | 174,400 | 131,600 | 156,400 | 29% | 32% | 671,600 | 579,700 | 16% |
| Total payable sales volumes | 198,400 | 154,200 | 168,400 | 126,700 | 150,600 | 29% | 32% | 647,700 | 558,700 | 16% |
| Third party sales(6) | 50,400 | 51,800 | 40,700 | 30,800 | 40,500 | (3)% | 24% | 173,700 | 111,400 | 56% |
(1) Excludes Anglo American Platinum’s copper production. Units shown are tonnes unless stated.
(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) Anglo American’s share of Collahuasi production is 44%.
(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)
| Platinum (000 oz) | Q4 2018 | Q4 2017 | Q4 2018 vs. Q4 2017 | Q3 2018 | Q4 2018 vs. Q3 2018 | 2018 | 2017 | 2018 vs. 2017 | |
| Metal in concentrate production(1) | 602.3 | 587.0 | 3% | 649.0 | (7)% | 2,484.7 | 2,397.4 | 4% | |
| Own mined(2) | 307.5 | 349.8 | (12)% | 332.9 | (8)% | 1,323.6 | 1,376.2 | (4)% | |
| Purchase of concentrate(3) | 294.8 | 237.2 | 24% | 316.1 | (7)% | 1,161.1 | 1,021.2 | 14% | |
| Palladium (000 oz) | |||||||||
| Metal in concentrate production(1) | 386.6 | 374.9 | 3% | 410.8 | (6)% | 1,610.8 | 1,557.4 | 3% | |
| Own mined(2) | 234.8 | 251.5 | (7)% | 250.2 | (6)% | 1,013.5 | 1,008.7 | 0% | |
| Purchase of concentrate(3) | 151.8 | 123.4 | 23% | 160.6 | (5)% | 597.3 | 548.6 | 9% | |
| Refined production | |||||||||
| Platinum | 000 oz | 770.9 | 722.2 | 7% | 556.2 | 39% | 2,402.4 | 2,511.9 | (4)% |
| Palladium | 000 oz | 493.8 | 491.4 | 0% | 321.5 | 54% | 1,501.8 | 1,668.4 | (10)% |
| Rhodium | 000 oz | 91.3 | 87.4 | 4% | 65.2 | 40% | 292.8 | 323.2 | (9)% |
| Gold | 000 oz | 27.9 | 30.3 | (8)% | 27.4 | 2% | 105.5 | 115.3 | (8)% |
| Nickel | t | 6,700 | 7,800 | (14)% | 5,600 | 20% | 23,100 | 26,000 | (11)% |
| Copper | t | 4,200 | 4,700 | (11)% | 2,900 | 45% | 14,300 | 15,700 | (9)% |
(1) Ounces refer to troy ounces.
(2) Includes managed operations and 50% of joint venture production.
(3) Includes 50% of joint venture production, and the purchase of concentrate from associates (Bokoni and BRPM) and third parties.
Platinum production increased by 3% to 602,300 ounces and palladium production increased by 3% to 386,600 ounces, due to improved operational performances across the majority of the portfolio.
Own mined production
Own mined platinum production decreased by 12% to 307,500 ounces and palladium production decreased by 7% to 234,800 ounces due to the sale of Union mine on 1 February 2018, after which its production was purchased as concentrate. Excluding Union, platinum production from own mine operations decreased by 2% and palladium production remained flat.
Mogalakwena platinum production decreased by 11% to 108,400 ounces and palladium production decreased by 8% to 118,200 ounces due to an 8% reduction in ore grade, as previously guided, as well as maintenance at one crusher, which led to a reduction in tonnes milled.
Amandelbult platinum and palladium production both decreased by 16% to 96,500 ounces and 44,900 ounces, respectively. The decreases were primarily due to the section 54 stoppage following the fatal incident on 18 October 2018 and Eskom power disruptions.
Unki platinum production increased by 34% to 22,000 ounces and palladium production increased by 38% to 19,600 ounces due to a strong operational performance with a 20% increase in tonnes milled, 10% improvement in recovery and 3% improvement in built-up head grade.
The acquisition of the remaining 50% of Mototolo was concluded on 1 November 2018, from which date 100% of its production became own mined production, contributing 17,500 platinum ounces and 10,900 palladium ounces.
Joint venture platinum production (Mototolo to 31 October 2018, Modikwa and Kroondal) increased by 6% to 126,200 ounces (of which 63,100 ounces was own mined production and 63,100 ounces was purchased concentrate). Palladium production increased by 6% to 82,400 ounces (of which 41,200 ounces was own mined production and 41,200 ounces was purchased concentrate). This was driven by productivity improvements, improved plant recoveries and an increase in grades.
Purchase of concentrate
Purchase of concentrate from joint ventures increased by 6% for platinum and 6% for palladium due to increased production, as outlined above.
Purchase of concentrate from associates decreased by 14% for platinum and 13% for palladium. The sale of Anglo American Platinum’s share in Bafokeng–Rasimone Platinum Mine (BRPM) completed on 11 December 2018 and production was treated as third party purchase of concentrate from 1 December 2018.
Purchase of concentrate from third parties increased by 51% for platinum and 46% for palladium due to concentrate purchased from Union mine following its sale, as well as from BRPM material following its sale on 11 December 2018.
Refined production and sales volumes
Refined platinum production increased by 7% to 770,900 ounces, while palladium production was flat at 493,800 ounces. Q4 2018 includes the partial release of the work-in-progress inventory following scheduled smelter rebuilds and maintenance at both Mortimer smelter and Polokwane smelters earlier in 2018.
Platinum sales volumes (excluding refined metal purchased from third parties) increased by 8% to 776,900 ounces due to higher refined production, supplemented by a draw down in refined platinum stocks. Palladium sales volumes decreased by 4% to 455,300 ounces.
The full year price per platinum ounce for the basket of metals sold increased by 13% to $2,219/oz compared to 2017, as 17% and 101% price increases in palladium and rhodium respectively more than offset an 8% reduction in the platinum price.
2019 Guidance
2019 platinum production guidance is revised to 2.0-2.1 million ounces (previously 2.0-2.2 million ounces) and palladium production guidance remains at 1.3-1.4 million ounces, decreases compared to 2018 due to the transition of Sibanye material to a tolling arrangement in place of its purchase as concentrate.
| Platinum(1) | Q4 2018 | Q3 2018 | Q2 2018 | Q1 2018 | Q4 2017 | Q4 2018 vs. Q3 2018 | Q4 2018 vs. Q4 2017 | 2018 | 2017 | 2018 vs. 2017 | |
| Produced platinum (000 oz) | 602.3 | 649.0 | 619.6 | 613.8 | 587.0 | (7)% | 3% | 2,484.7 | 2,397.4 | 4% | |
| Own mined | 307.5 | 332.9 | 340.2 | 343.0 | 349.8 | (8)% | (12)% | 1,323.6 | 1,376.2 | (4)% | |
| Mogalakwena | 108.4 | 113.9 | 133.4 | 139.4 | 121.7 | (5)% | (11)% | 495.1 | 463.8 | 7% | |
| Amandelbult | 96.5 | 126.0 | 116.3 | 103.9 | 114.8 | (23)% | (16)% | 442.7 | 438.0 | 1% | |
| Unki | 22.0 | 22.4 | 20.9 | 20.6 | 16.4 | (2)% | 34% | 85.9 | 74.6 | 15% | |
| Mototolo(2) | 17.5 | – | – | – | – | – | – | 17.5 | – | – | |
| Joint ventures(2) | 63.1 | 70.6 | 69.6 | 67.5 | 59.8 | (11)% | 6% | 270.8 | 245.3 | 10% | |
| Union | – | – | – | 11.6 | 37.1 | – | (100)% | 11.6 | 154.5 | (92)% | |
| Purchase of concentrate | 294.8 | 316.1 | 279.4 | 270.8 | 237.2 | (7)% | 24% | 1,161.1 | 1,021.2 | 14% | |
| Joint ventures(2) | 63.1 | 70.6 | 69.6 | 67.5 | 59.8 | (11)% | 6% | 270.8 | 245.3 | 10% | |
| Associates(3) | 46.9 | 66.7 | 54.3 | 52.3 | 54.8 | (30)% | (14)% | 220.2 | 265.5 | (17)% | |
| Third parties | 184.8 | 178.8 | 155.5 | 151.0 | 122.6 | 3% | 51% | 670.1 | 510.4 | 31% | |
| Palladium(1) | |||||||||||
| Produced palladium (000 oz) | 386.6 | 410.8 | 406.0 | 407.4 | 374.9 | (6)% | 3% | 1,610.8 | 1,557.4 | 3% | |
| Own mined | 234.8 | 250.2 | 260.8 | 267.7 | 251.5 | (6)% | (7)% | 1,013.5 | 1,008.7 | 0% | |
| Mogalakwena | 118.2 | 127.1 | 145.1 | 150.5 | 127.8 | (7)% | (8)% | 540.9 | 508.9 | 6% | |
| Amandelbult | 44.9 | 57.3 | 52.2 | 50.7 | 53.7 | (22)% | (16)% | 205.1 | 202.5 | 1% | |
| Unki | 19.6 | 19.7 | 18.4 | 17.8 | 14.2 | (1)% | 38% | 75.5 | 64.4 | 17% | |
| Mototolo(2) | 10.9 | – | – | – | – | – | – | 10.9 | – | – | |
| Joint ventures(2) | 41.2 | 46.1 | 45.1 | 43.5 | 38.7 | (11)% | 6% | 176.0 | 161.5 | 9% | |
| Union | – | – | – | 5.2 | 17.1 | – | (100)% | 5.2 | 71.4 | (93)% | |
| Purchase of concentrate | 151.8 | 160.6 | 145.2 | 139.7 | 123.4 | (5)% | 23% | 597.3 | 548.6 | 9% | |
| Joint ventures(2) | 41.2 | 46.1 | 45.1 | 43.5 | 38.7 | (11)% | 6% | 175.9 | 161.5 | 9% | |
| Associates(3) | 19.3 | 27.2 | 22.0 | 21.7 | 22.1 | (29)% | (13)% | 90.2 | 127.9 | (29)% | |
| Third parties | 91.3 | 87.3 | 78.1 | 74.5 | 62.6 | 5% | 46% | 331.2 | 259.2 | 28% | |
| Refined production(1) | |||||||||||
| Platinum (000 oz) | 770.9 | 556.2 | 572.7 | 502.6 | 722.2 | 39% | 7% | 2,402.4 | 2,511.9 | (4)% | |
| Palladium (000 oz) | 493.8 | 321.5 | 366.7 | 319.8 | 491.4 | 54% | 0% | 1,501.8 | 1,668.4 | (10)% | |
| Rhodium (000 oz) | 91.3 | 65.2 | 73.8 | 62.5 | 87.4 | 40% | 4% | 292.8 | 323.2 | (9)% | |
| Gold (000 oz) | 27.9 | 27.4 | 27.3 | 22.9 | 30.3 | 2% | (8)% | 105.5 | 115.3 | (8)% | |
| Nickel (tonnes) | 6,700 | 5,600 | 5,700 | 5,100 | 7,800 | 20% | (14)% | 23,100 | 26,000 | (11)% | |
| Copper (tonnes) | 4,200 | 2,900 | 4,000 | 3,200 | 4,700 | 45% | (11)% | 14,300 | 15,700 | (9)% | |
| 4E Head grade (g/tonne milled)(4) | 3.38 | 3.58 | 3.60 | 3.45 | 3.53 | (6)% | (4)% | 3.48 | 3.46 | 1% | |
| Platinum sales volumes (000 oz)(5) | 776.9 | 530.1 | 636.4 | 480.8 | 721.7 | 47% | 8% | 2,424.2 | 2,504.6 | (3)% | |
| Palladium sales volumes (000 oz)(5) | 455.3 | 324.3 | 405.3 | 328.2 | 473.5 | 40% | (4)% | 1,513.1 | 1,571.7 | (4)% | |
| Platinum third party sales volumes (000 oz)(6) | 1.5 | 26.9 | 45.8 | 19.8 | – | (94)% | – | 94.0 | 1.0 | 9,300% | |
| Palladium third party sales volumes (000 oz)(6) | 16.5 | 55.0 | 45.0 | 8.0 | – | (70)% | – | 124.5 | 19.2 | 548% | |
(1) Ounces refer to troy ounces.
(2) The joint venture 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’. Mototolo is 100% owned from 1 November 2018.
(3) Associates are Platinum’s 33% interest in BRPM until its sale effective 11 December 2018 and, also in 2017, its 49% interest in Bokoni, which was placed on care and maintenance in Q3 2017.
(4) 4E: the grade measured as the combined content of: platinum, palladium, rhodium and gold.
(5) Sales from own mined and purchased concentrate, excludes refined metal purchased from third parties.
(6) Relates to sales of metal not produced by Anglo American operations.
IRON ORE
| Iron Ore (000 t) | Q4 2018 | Q4 2017 | Q4 2018 vs. Q4 2017 | Q3 2018 | Q4 2018 vs. Q3 2018 | 2018 | 2017 | 2018 vs. 2017 |
| Kumba | 10,170 | 11,643 | (13)% | 10,508 | (3)% | 43,106 | 44,983 | (4)% |
| Minas-Rio(1) | 227 | 3,950 | (94)% | – | – | 3,382 | 16,787 | (80)% |
(1) Wet basis.
Kumba – Production volumes for the quarter decreased by 13% to 10.2 million tonnes as planned to offset elevated stock levels at the mines resulting from Transnet rail constraints. Plant yields remained slightly lower, in line with the strategy of producing higher quality products, to maximise the value of tonnes railed to port and to benefit from the strong demand for high-grade ore. As a result, full year production of 43.1 million tonnes was at the lower end of the guidance range.
Sishen’s production decreased by 11% to 7.0 million tonnes, while waste stripping increased by 19% to 51 million tonnes.
Kolomela’s production decreased by 17% to 3.2 million tonnes of ore, while waste remained flat at 14 million tonnes.
Export sales decreased by 6% to 10.7 million tonnes due to reduced loading capacity following the scheduled six-week refurbishment of a ship loader by Transnet at Saldanha Port, as well as the temporary closure of the export rail line due to a truck colliding with a railway bridge. Total finished product stocks decreased from 6.6 million tonnes at 30 September 2018 to 5.3 million tonnes at 31 December 2018.
In fourth quarter and full year 2018 the ratio of lump:fines in Kumba product was approximately 68:32.
Minas-Rio – Production was 0.2 million tonnes in Q4 2018 following the resumption of operations after the receipt of the appropriate regulatory approvals on 20 December 2018, following an extensive and detailed technical inspection and the precautionary replacement of certain sections of the pipeline. Production had been suspended since March 2018 following the discovery of two leakages in the 529-kilometre iron ore pipeline from the mine to the Port of Açu.
2019 Guidance
2019 production guidance for Kumba is 43-44 million tonnes.
2019 production guidance for Minas-Rio is 18-20 million tonnes (wet basis).
A key regulatory approval relating to the Minas-Rio Step 3 licence area was granted on 21 December 2018, providing greater operational flexibility and access to higher grade iron ore to support the increase of production towards the full design capacity of 26.5 million tonnes per year. As a result, 2019 production guidance for Minas-Rio was increased to 18-20 million tonnes (previously 16-19 million tonnes). In addition, 2019 unit cost guidance was reduced to $28-31 per tonne (previously $30-33 per tonne).
| Iron Ore (tonnes) | Q4 2018 | Q3 2018 | Q2 2018 | Q1 2018 | Q4 2017 | Q4 2018 vs. Q3 2018 | Q4 2018 vs. Q4 2017 | 2018 | 2017 | 2018 vs. 2017 | |
| Kumba production | 10,170,200 | 10,508,400 | 11,572,000 | 10,855,100 | 11,642,600 | (3)% | (13)% | 43,105,700 | 44,982,500 | (4)% | |
| Lump | 6,878,600 | 7,159,800 | 7,889,600 | 7,243,500 | 7,719,100 | (4)% | (11)% | 29,171,500 | 29,811,300 | (2)% | |
| Fines | 3,291,600 | 3,348,600 | 3,682,400 | 3,611,600 | 3,923,500 | (2)% | (16)% | 13,934,200 | 15,171,200 | (8)% | |
| Kumba production by mine | |||||||||||
| Sishen | 6,960,500 | 7,030,600 | 7,930,300 | 7,324,600 | 7,782,300 | (1)% | (11)% | 29,246,000 | 31,119,200 | (6)% | |
| Kolomela | 3,209,700 | 3,477,800 | 3,641,700 | 3,530,500 | 3,860,300 | (8)% | (17)% | 13,859,700 | 13,863,300 | 0% | |
| Kumba sales volumes | |||||||||||
| Export iron ore | 10,723,200 | 9,736,700 | 9,560,100 | 9,945,700 | 11,354,800 | 10% | (6)% | 39,965,700 | 41,614,600 | (4)% | |
| Domestic iron ore | 868,200 | 755,600 | 781,900 | 885,400 | 875,700 | 15% | (1)% | 3,291,100 | 3,277,100 | 0% | |
| Minas-Rio production | |||||||||||
| Pellet feed (wet basis) | 226,700 | – | 105,800 | 3,049,400 | 3,949,900 | – | (94)% | 3,382,000 | 16,787,200 | (80)% | |
| Minas-Rio sales volumes | |||||||||||
| Export – pellet feed (wet basis) | – | – | 320,800 | 2,896,100 | 4,140,700 | – | (100)% | 3,216,800 | 16,508,000 | (81)% | |
COAL
| Coal(1) (000 t) | Q4 2018 | Q4 2017 | Q4 2018 vs. Q4 2017 | Q3 2018 | Q4 2018 vs. Q3 2018 | 2018 | 2017 | 2018 vs. 2017 |
| Metallurgical Coal (Australia) | 5,647 | 4,924 | 15% | 5,382 | 5% | 21,830 | 19,661 | 11% |
| Export Thermal Coal (Australia) | 428 | 409 | 5% | 455 | (6)% | 1,381 | 1,614 | (14)% |
| Export Thermal Coal (South Africa)(2) | 4,537 | 4,648 | (2)% | 5,054 | (10)% | 18,359 | 18,593 | (1)% |
| Export Thermal Coal (Colombia) | 2,357 | 2,914 | (19)% | 2,658 | (11)% | 10,220 | 10,642 | (4)% |
| Domestic Thermal Coal (South Africa) | 3,293 | 7,203 | (54)% | 2,650 | 24% | 13,692 | 31,312 | (56)% |
(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.
Metallurgical Coal – Export metallurgical coal production increased by 15% to 5.6 million tonnes, with productivity improvements at Moranbah offsetting the impact of a longwall move at Grasstree, which started in December 2018. Grosvenor production also increased year-on-year, but was significantly lower than in Q3 2018 due to a longwall move, which was completed in late December 2018.
In the fourth quarter and in the full year 2018, the ratio of hard coking coal production to PCI/semi-soft coking coal was approximately 86:14.
Thermal Coal South Africa – Export thermal coal production decreased marginally by 2% to 4.5 million tonnes, as operations continue to transition between mining areas.
Domestic thermal coal production decreased by 54% to 3.3 million tonnes due to the completion of the sale of the Eskom-tied operations (New Vaal, New Denmark and Kriel) to Seriti on 1 March 2018.
Thermal Coal Colombia – Attributable export thermal coal production from Cerrejón decreased by 19% to 2.4 million tonnes as a result of high rainfall in Q4 2018.
The weighted average realised price for export thermal coal from South Africa and Colombia was $86/tonne, 8% lower than the weighted average quoted FOB price for South Africa and Colombia due to coal quality.
2019 Guidance
2019 production guidance for Metallurgical Coal is 22-24 million tonnes.
2019 production guidance for Export Thermal Coal is 26-28 million tonnes.
| Coal, by product (tonnes)(1) | Q4 2018 | Q3 2018 | Q2 2018 | Q1 2018 | Q4 2017 | Q4 2018 vs. Q3 2018 | Q4 2018 vs. Q4 2017 | 2018 | 2017 | 2018 vs. 2017 |
| Metallurgical Coal (Australia) | 5,647,100 | 5,382,300 | 5,261,900 | 5,539,100 | 4,923,900 | 5% | 15% | 21,830,400 | 19,661,300 | 11% |
| Hard Coking Coal | 4,864,600 | 4,545,800 | 4,534,800 | 4,853,200 | 4,300,300 | 7% | 13% | 18,798,400 | 16,980,800 | 11% |
| PCI / SSCC | 782,500 | 836,500 | 727,100 | 685,900 | 623,600 | (6)% | 25% | 3,032,000 | 2,680,500 | 13% |
| Thermal Coal | 10,613,700 | 10,816,800 | 10,271,300 | 11,950,300 | 15,172,700 | (2)% | (30)% | 43,652,100 | 62,160,300 | (30)% |
| Export (Australia) | 427,600 | 455,100 | 289,900 | 208,700 | 408,600 | (6)% | 5% | 1,381,300 | 1,613,700 | (14)% |
| Export (South Africa)(2) | 4,537,100 | 5,054,400 | 4,439,600 | 4,327,500 | 4,647,800 | (10)% | (2)% | 18,358,600 | 18,592,600 | (1)% |
| Export (Colombia) | 2,356,500 | 2,657,600 | 2,761,500 | 2,444,300 | 2,913,600 | (11)% | (19)% | 10,219,900 | 10,641,600 | (4)% |
| Domestic (South Africa) | 3,292,500 | 2,649,700 | 2,780,300 | 4,969,800 | 7,202,700 | 24% | (54)% | 13,692,300 | 31,312,400 | (56)% |
| Total coal production | 16,260,800 | 16,199,100 | 15,533,200 | 17,489,400 | 20,096,600 | 0% | (19)% | 65,482,500 | 81,821,600 | (20)% |
| Sales volumes | ||||||||||
| Metallurgical Coal (Australia) | 5,812,700 | 5,442,800 | 5,094,500 | 5,632,900 | 5,323,600 | 7% | 9% | 21,982,800 | 19,767,700 | 11% |
| Hard Coking Coal | 5,064,200 | 4,834,100 | 4,402,800 | 4,885,500 | 4,653,000 | 5% | 9% | 19,186,600 | 17,487,300 | 10% |
| PCI / SSCC | 748,500 | 608,700 | 691,700 | 747,400 | 670,600 | 23% | 12% | 2,796,200 | 2,280,400 | 23% |
| Thermal Coal | 13,700,800 | 11,782,900 | 12,904,300 | 14,227,800 | 17,079,500 | 16% | (20)% | 52,615,600 | 70,635,700 | (26)% |
| Export (Australia) | 582,200 | 331,600 | 357,800 | 293,800 | 466,900 | 76% | 25% | 1,565,300 | 1,831,400 | (15)% |
| Export (South Africa)(2) | 5,918,700 | 3,679,600 | 4,092,700 | 4,615,700 | 4,843,500 | 38% | 15% | 18,306,600 | 18,608,800 | (2)% |
| Export (Colombia) | 2,297,200 | 2,589,100 | 2,762,900 | 2,480,200 | 2,619,400 | (11)% | (12)% | 10,129,400 | 10,553,700 | (4)% |
| Domestic (South Africa) | 1,947,500 | 3,305,800 | 3,146,500 | 4,711,000 | 7,370,300 | (22)% | (69)% | 13,110,800 | 32,023,100 | (59)% |
| Third party sales | 2,955,200 | 1,876,800 | 2,544,400 | 2,127,100 | 1,779,400 | 57% | 66% | 9,503,500 | 7,618,700 | 25% |
(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.
| Coal, by operation (tonnes) (1) | Q4 2018 | Q3 2018 | Q2 2018 | Q1 2018 | Q4 2017 | Q4 2018 vs. Q3 2018 | Q4 2018 vs. Q4 2017 | 2018 | 2017 | 2018 vs. 2017 |
| Metallurgical Coal (Australia) | 5,647,100 | 5,382,300 | 5,261,900 | 5,539,100 | 4,923,900 | 5% | 15% | 21,830,400 | 19,661,300 | 11% |
| Moranbah North | 2,485,200 | 1,275,800 | 1,064,300 | 1,936,700 | 1,979,800 | 95% | 26% | 6,762,000 | 5,401,300 | 25% |
| Grosvenor | 356,100 | 1,239,800 | 1,342,000 | 825,600 | 161,300 | (71)% | 121% | 3,763,500 | 2,067,200 | 82% |
| Capcoal (incl. Grasstree) | 1,357,800 | 1,564,700 | 1,324,200 | 1,396,000 | 1,604,900 | (13)% | (15)% | 5,642,700 | 6,486,400 | (13)% |
| Dawson | 666,100 | 478,700 | 714,100 | 534,500 | 319,700 | 39% | 108% | 2,393,400 | 2,482,700 | (4)% |
| Jellinbah | 781,900 | 823,300 | 817,300 | 846,300 | 858,200 | (5)% | (9)% | 3,268,800 | 3,223,700 | 1% |
| Thermal Coal (Australia) | 427,600 | 455,100 | 289,900 | 208,700 | 408,600 | (6)% | 5% | 1,381,300 | 1,613,700 | (14)% |
| Capcoal (incl. Grasstree) | 81,000 | 71,600 | 66,000 | 65,500 | 95,400 | 13% | (15)% | 284,100 | 282,300 | 1% |
| Dawson | 320,500 | 357,700 | 193,400 | 114,500 | 310,800 | (10)% | 3% | 986,100 | 1,299,500 | (24)% |
| Jellinbah | 26,100 | 25,800 | 30,500 | 28,700 | 2,400 | 1% | 988% | 111,100 | 31,900 | 248% |
| Total Australia production | 6,074,700 | 5,837,400 | 5,551,800 | 5,747,800 | 5,332,500 | 4% | 14% | 23,211,700 | 21,275,000 | 9% |
| Thermal (South Africa)(2) | ||||||||||
| Goedehoop | 1,590,700 | 1,527,000 | 1,185,900 | 1,138,000 | 1,114,300 | 4% | 43% | 5,441,600 | 4,652,600 | 17% |
| Greenside | 1,202,300 | 1,264,300 | 941,500 | 1,043,600 | 1,041,200 | (5)% | 15% | 4,451,700 | 3,830,400 | 16% |
| Zibulo | 1,681,500 | 1,468,700 | 1,553,500 | 1,673,100 | 1,587,900 | 14% | 6% | 6,376,800 | 6,234,800 | 2% |
| Khwezela | 1,522,000 | 1,468,800 | 1,297,200 | 1,244,000 | 1,371,300 | 4% | 11% | 5,532,100 | 5,707,700 | (3)% |
| Mafube | 464,200 | 402,700 | 172,100 | 105,600 | 350,900 | 15% | 32% | 1,144,600 | 1,561,000 | (27)% |
| Other(3) | – | 604,100 | 1,076,700 | – | – | (100)% | – | 1,680,700 | – | – |
| New Vaal(4) | – | – | – | 1,560,500 | 3,218,500 | – | (100)% | 1,560,500 | 15,109,000 | (90)% |
| New Denmark(4) | – | – | – | 560,100 | 963,300 | – | (100)% | 560,200 | 3,361,000 | (83)% |
| Kriel(4) | – | – | – | 704,900 | 1,237,400 | – | (100)% | 704,900 | 5,388,900 | (87)% |
| Isibonelo | 1,368,900 | 968,500 | 993,000 | 1,267,500 | 965,700 | 41% | 42% | 4,597,800 | 4,059,500 | 13% |
| Total South Africa production | 7,829,600 | 7,704,100 | 7,219,900 | 9,297,300 | 11,850,500 | 2% | (34)% | 32,050,900 | 49,905,000 | (36)% |
| Colombia (Cerrejón) | 2,356,500 | 2,657,600 | 2,761,500 | 2,444,300 | 2,913,600 | (11)% | (19)% | 10,219,900 | 10,641,600 | (4)% |
| Total Coal production | 16,260,800 | 16,199,100 | 15,533,200 | 17,489,400 | 20,096,600 | 0% | (19)% | 65,482,500 | 81,821,600 | (20)% |
(1) Anglo American’s attributable share of production.
(2) Export and domestic production; New Vaal, New Denmark, Kriel and Isibonelo produce exclusively domestic volumes.
(3) Other production comes from the recovery of saleable product from mineral residue deposits.
(4) The sale of the Eskom-tied operations was completed on 1 March 2018.
NICKEL
| Nickel (tonnes) | Q4 2018 | Q4 2017 | Q4 2018 vs. Q4 2017 | Q3 2018 | Q4 2018 vs. Q3 2018 | 2018 | 2017 | 2018 vs. 2017 |
| Nickel | 11,400 | 11,400 | 0% | 11,500 | (1)% | 42,300 | 43,800 | (3)% |
Nickel production was in line with Q4 2017 at both Barro Alto and Codemin.
2019 Guidance
2019 production guidance is 42,000-44,000 tonnes.
| Nickel(1) | Q4 2018 | Q3 2018 | Q2 2018 | Q1 2018 | Q4 2017 | Q4 2018 vs. Q3 2018 | Q4 2018 vs. Q4 2017 | 2018 | 2017 | 2018 vs. 2017 | |
| Barro Alto | |||||||||||
| Ore mined | 816,500 | 1,640,400 | 1,208,800 | 1,001,500 | 978,600 | (50)% | (17)% | 4,667,200 | 6,272,800 | (26)% | |
| Ore processed | 607,300 | 620,900 | 588,200 | 447,600 | 591,500 | (2)% | 3% | 2,264,200 | 2,309,300 | (2)% | |
| Ore grade processed – %Ni | 1.74 | 1.73 | 1.67 | 1.68 | 1.71 | 1% | 2% | 1.71 | 1.71 | 0% | |
| Production | 9,100 | 9,400 | 8,600 | 6,500 | 9,100 | (3)% | 0% | 33,500 | 34,900 | (4)% | |
| Codemin | |||||||||||
| Ore mined | 8,400 | – | – | – | – | – | – | 8,400 | 7,500 | 12% | |
| Ore processed | 150,600 | 139,100 | 150,600 | 141,100 | 147,200 | 8% | 2% | 581,400 | 587,000 | (1)% | |
| Ore grade processed – %Ni | 1.68 | 1.69 | 1.62 | 1.66 | 1.70 | (1)% | (1)% | 1.66 | 1.69 | (2)% | |
| Production | 2,300 | 2,100 | 2,200 | 2,100 | 2,300 | 10% | 0% | 8,800 | 8,900 | (1)% | |
| Total Nickel segment nickel production | 11,400 | 11,500 | 10,800 | 8,600 | 11,400 | (1)% | 0% | 42,300 | 43,800 | (3)% | |
| Sales volumes | 12,600 | 10,400 | 10,800 | 9,200 | 10,900 | 21% | 16% | 43,100 | 43,000 | 0% | |
(1) Excludes Anglo American Platinum’s nickel production.
MANGANESE
| Manganese (000 t) | Q4 2018 | Q4 2017 | Q4 2018 vs. Q4 2017 | Q3 2018 | Q4 2018 vs. Q3 2018 | 2018 | 2017 | 2018 vs. 2017 |
| Manganese ore (1) | 972 | 980 | (1)% | 888 | 9% | 3,607 | 3,486 | 3% |
| Manganese alloys(1)(2) | 38 | 41 | (8)% | 35 | 9% | 157 | 149 | 5% |
(1) Saleable production.
(2) Production includes medium carbon ferro-manganese.
Manganese ore – Manganese ore production decreased by 1% to 971,900 tonnes.
Manganese alloy – Manganese alloy production decreased by 8% to 38,000 tonnes.
| Manganese (tonnes) | Q4 2018 | Q3 2018 | Q2 2018 | Q1 2018 | Q4 2017 | Q4 2018 vs. Q3 2018 | Q4 2018 vs. Q4 2017 | 2018 | 2017 | 2018 vs. 2017 |
| Samancor | ||||||||||
| Manganese ore(1) | 971,900 | 887,600 | 866,200 | 880,800 | 979,600 | 9% | (1)% | 3,606,500 | 3,485,500 | 3% |
| Manganese alloys(1)(2) | 38,000 | 34,800 | 42,800 | 41,200 | 41,100 | 9% | (8)% | 156,800 | 149,200 | 5% |
| Samancor sales volumes | ||||||||||
| Manganese ore | 959,800 | 840,400 | 910,100 | 824,200 | 874,900 | 14% | 10% | 3,534,500 | 3,445,400 | 3% |
| Manganese alloys | 44,000 | 30,400 | 48,400 | 38,300 | 37,300 | 45% | 18% | 161,100 | 142,400 | 13% |
(1) Saleable production.
(2) Production includes medium carbon ferro-manganese.
EXPLORATION AND EVALUATION
Exploration and Evaluation expenditure for the fourth quarter increased by 19% to $80 million compared to the same period of 2017. Exploration expenditure decreased by 6% to $29 million largely driven by adverse weather and delays with access. Evaluation expenditure increased by 42% to $51 million largely due to increased works in Chile at the Los Bronces Underground Project as well as modest increases in PGMs, De Beers and Metallurgical Coal.
Exploration and Evaluation expenditure for the full year 2018 was $284 million, up 25% on 2017 due mainly to increased evaluation spend for the Los Bronces Underground, as well as in De Beers and Metallurgical coal.
CORPORATE ACTIVITY AND OTHER ITEMS
During the quarter, provision increases, including future rehabilitation and closure costs principally at Copper and De Beers, resulted in a negative non-cash impact on EBITDA of approximately $0.2bn.
A sell down of lower margin goods from stock has slightly reduced the inventory build-up disclosed previously, the balance of which is expected to be largely cleared in the first half of 2019.
REALISED PRICES SUMMARY
| Average realised prices | 2018 | 2017 | H2 2018 | H1 2018 | 2018 vs. 2017 | H2 2018 vs. H1 2018 |
| De Beers | ||||||
| Total sales volumes (100%) (Mct)(1) | 33.7 | 35.1 | 14.9 | 18.8 | (4)% | (21)% |
| Consolidated sales volumes (Mct)(1) | 31.7 | 33.1 | 13.9 | 17.8 | (4)% | (22)% |
| Consolidated average realised price ($/ct)(2) | 171 | 162 | 182 | 162 | 6% | 12% |
| Average price index(3) | 123 | 122 | 122 | 123 | 1% | (1)% |
| PGMs | ||||||
| Platinum (US$/oz) | 871 | 947 | 816 | 932 | (8%) | (12%) |
| Palladium (US$/oz) | 1,029 | 876 | 1,051 | 1,005 | 17% | 5% |
| Rhodium (US$/oz) | 2,204 | 1,094 | 2,429 | 1,938 | 101% | 25% |
| Basket price (US$/oz) | 2,219 | 1,966 | 2,135 | 2,318 | 13% | (8%) |
| Copper (USc/lb)(4) | 283 | 290 | 268 | 297 | (2)% | (10)% |
| Iron Ore – FOB prices | ||||||
| Kumba Export (US$/dmt)(5) | 72 | 71 | 76 | 69 | 1% | 10% |
| Minas-Rio (US$/wmt)(6) | 70 | 65 | – | 70 | 8% | – |
| Coal | ||||||
| Australia and Canada | ||||||
| Metallurgical – HCC (US$/t)(7) | 194 | 187 | 191 | 198 | 4% | (4)% |
| Metallurgical – PCI (US$/t)(7) | 128 | 125 | 128 | 129 | 2% | (1)% |
| Thermal – Export (US$/t) | 103 | 91 | 105 | 99 | 13% | 6% |
| South Africa | ||||||
| Thermal – Export (US$/t)(8) | 87 | 76 | 87 | 88 | 14% | (2)% |
| Thermal – Domestic (US$/t, FOR)(9) | 19 | 21 | 18 | 20 | (10)% | (10)% |
| Colombia | ||||||
| Thermal – Export (US$/t) | 83 | 75 | 87 | 79 | 11% | 10% |
| Nickel (USc/lb) | 588 | 476 | 541 | 632 | 24% | (14)% |
(1) Consolidated sales volumes exclude De Beers Group 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 the total sales volume (100%) basis.
(2) Consolidated average realised price based on 100% selling value post-aggregation.
(3) Average of the De Beers Group price index for the Sights within the 12-month period. The De Beers price index is relative to 100 as at December 2006.
(4) The realised price for Copper excludes third party sales volumes.
(5) Average realised export basket price (FOB Saldanha).
(6) Average realised export basket price (FOB Açu) (wet basis).
(7) Weighted average metallurgical coal sales price achieved.
(8) Weighted average export thermal coal price achieved. Excludes third party sales.
(9) Weighted average domestic thermal coal price achieved on all domestic thermal coal sales.
