Company Announcements

(1) Average realised total copper price is a weighted average of the Copper Chile and Copper Peru realised prices.

(2) Realised price for Copper Chile excludes third party sales volumes.

(3) Realised price excludes trading.

(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.

(6) Average realised export basket price (FOB Saldanha) (wet basis as product is shipped with ~1.6% moisture). 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 $123/t (Q1 2022: $172/t), higher than the dry 62% Fe benchmark price of $112/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. Australian thermal coal by-product in Q1 2023, a 16% decrease to US$194/t (Q1 2022 US$230/t). FY 2022 was $310/t.

De Beers

Rough diamond production was flat at 8.9 million carats, as the planned treatment of higher grade ore and strong operational performance across most of the assets was offset by the planned end of operations in Venetia's open pit in December 2022 as the mine transitions to underground operations during 2023.

In Botswana, production increased by 12% to 6.9 million carats, primarily driven by the planned treatment of higher grade ore and continued strong plant performance at Orapa.

Namibia production increased by 37% to 0.6 million carats, primarily driven by the contribution from the Benguela Gem vessel, which commenced production in March 2022.

South Africa production decreased by 56% to 0.7 million carats, due to the planned completion of the Venetia open pit in December 2022. Venetia continues to process lower grade surface stockpiles, which will result in temporary lower production levels as it transitions to underground operations.

Production in Canada increased by 11% to 0.7 million carats, despite unplanned maintenance challenges.

Sales were in line with expectations given that Sightholders have taken a more cautious approach in planning their 2023 allocation schedule in light of the current uncertain macroeconomic outlook, with a greater weighting of goods expected to be purchased as the year progresses. Rough diamond sales totalled 9.7 million carats (8.9 million carats on a consolidated basis)⁽²⁾ from three Sights, compared with 7.9 million carats (7.0 million carats on a consolidated basis)⁽²⁾ from two Sights in Q1 2022, and 7.3 million carats (6.6 million carats on a consolidated basis)⁽²⁾ from two Sights in Q4 2022.

2023 Guidance

Production guidance⁽¹⁾ for 2023 is unchanged at 30-33 million carats (100% basis), subject to trading conditions.

Unit cost guidance for 2023 is unchanged at c.$80/ct⁽³⁾.

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

(2) 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).

(3) FX assumption of ~17 ZAR:USD.

(1) De Beers Group production is on a 100% basis, except for the Gahcho Kué joint operation 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 the Diamond Trading Company Botswana and the Namibia Diamond Trading Company, which are included in total sales volume (100% basis).

Iron ore production increased by 15% to 15.1 million tonnes, reflecting a 16% increase at Minas-Rio and a 14% increase at Kumba.

Kumba - Total production increased to 9.4 million tonnes, primarily driven by a 25% increase at Kolomela to 3.1 million tonnes as well as a 9% increase at Sishen to 6.3 million tonnes, reflecting improved operational performance due to improved rain readiness capability and equipment reliability, as well as the benefit of lower rainfall this quarter.

Total sales increased 2% to 9.5 million tonnes⁽¹⁾ but, due to ongoing weak logistics performance from Transnet as the third party rail and port operator, continues to be constrained by low levels of finished stock at the port. As a result, total finished stock increased to 8.0 million tonnes⁽¹⁾ (Q1 2022: 5.1 million tonnes⁽¹⁾).

Kumba's iron (Fe) content averaged 63.1% (Q1 2022: 64.0%), while the average lump:fines ratio was 67:33 (Q1 2022: 65:35).

The Q1 average realised price of $121/tonne⁽¹⁾ (FOB South Africa, wet basis) was 10% higher than the 62% Fe benchmark price of $110/tonne (FOB South Africa, adjusted for freight and moisture), reflecting the lump and Fe content quality premiums that the Kumba products attract, as well as the benefit of provisionally priced sales volumes.

Minas-Rio - Production increased by 16% to 5.7 million tonnes, driven by improved mining performance, reflecting improved rain readiness capability as well as increased plant performance due to improvements at the crushing circuit.

The Q1 average realised price of $125/tonne (FOB Brazil, wet basis) was higher than the Metal Bulletin 65⁽²⁾ price of $109/tonne (FOB Brazil, adjusted for freight and moisture), which takes into account the premium for our high quality product, including higher (~67%) Fe content, as well as the benefit of provisionally priced sales volumes.

2023 Guidance

Production guidance (wet basis) for 2023 is unchanged at 57-61 million tonnes (Kumba 35-37 million tonnes; Minas-Rio 22-24 million tonnes). Kumba is subject to third party rail and port performance.

Unit cost guidance (wet basis) for 2023 is unchanged at c.$39/tonne⁽³⁾ (Kumba c.$44/tonne⁽³⁾; Minas-Rio c.$32/tonne⁽³⁾).

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

(2) Fastmarkets has ceased publication of the Metal Bulletin 66 index, therefore the benchmark price has been switched to Metal Bulletin 65. 

(3) FX assumption of ~17 ZAR:USD for Kumba and ~5.3 BRL:USD for Minas-Rio.

(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.

Steelmaking Coal

(1) Anglo American's attributable share of production. Includes production relating to processing of third party product.

Steelmaking coal production increased by 59% to 3.5 million tonnes, as all three longwalls (Grosvenor, Moranbah and Aquila) were operational during the quarter, reflecting the benefit of the Grosvenor restart and the Aquila mine commissioning, which both occurred in February 2022, and the longwall move at Moranbah in Q1 2022. Grosvenor continued to improve longwall performance throughout the quarter, while Moranbah is safely navigating through challenging strata conditions, which we expect to improve by the middle of the second quarter.

Aquila successfully completed its first 'walk-on-walk-off' longwall move in February 2023, which is a significant step forward in operational performance as no days of longwall production were lost during the move; furthermore, as it is a fully automated and remote longwall operation, it leads to safer and more productive output. The open cut operations recovered from wet weather impacts experienced earlier in the quarter.

The ratio of hard coking coal production to PCI/semi-soft coking coal was 80:20, broadly in line with Q1 2022 (79:21), as the higher contribution of premium hard coking coal from Grosvenor and Moranbah in this quarter was offset by higher volumes of PCI/semi-soft coals from the open cuts compared to Q1 2022.

The Q1 average realised price for hard coking coal was $301/tonne, lower than the benchmark price of $344/tonne. However, the price realisation increased to 88% (Q1 2022: 76%) driven by larger volumes of premium hard coking coal being produced from the underground longwall operations and the impact of sales timing in Q1 2022.

2023 Guidance

Production guidance for 2023 is unchanged at 16-19 million tonnes.

Unit cost guidance for 2023 is unchanged at c.$105/tonne⁽¹⁾.

(1) FX assumption of ~1.5 AUD:USD.

Manganese

(1) Saleable production.

Manganese ore production increased by 5% to 840,900 tonnes, primarily reflecting the impact of the planned maintenance at the South African operation in Q1 2022.

(1) Saleable production.

Exploration and evaluation

Exploration and evaluation expenditure increased by 13% to $68 million. Exploration expenditure increased by 25% to $30 million, reflecting increased activity, principally in copper. Evaluation expenditure increased by 6% to $38 million, driven by higher spend in iron ore and base metals.

Corporate and other activities

For more information on Anglo American's announcements since our previous production report, please find links to our Press Releases below:

• 18 April 2023 | Anglo American updates on sustainability progress - carbon neutrality, thriving communities and workplace culture

• 18 April 2023 | Anglo American secures environmental approval for Los Bronces Integrated Project

• 12 April 2023 | Anglo American rough diamond sales value for De Beers' third sales cycle of 2023

• 4 April 2023 | Anglo American partners with H2 Green Steel to advance low carbon steelmaking

• 8 March 2023 | Anglo American rough diamond sales value for De Beers' second sales cycle of 2023

• 28 February 2023 | Anglo American appoints Magali Anderson as non-executive director

• 23 February 2023 | Anglo American Preliminary Results 2022

• 23 February 2023 | Notice of Final Dividend

• 21 February 2023 | Kumba Iron Ore annual results 2022

• 20 February 2023 | Anglo American Platinum Limited year end results 2022

• 15 February 2023 | Anglo American senior leadership change

• 8 February 2023 | Anglo American to acquire 9.9% of Canada Nickel, owner of the Crawford nickel project

Notes

• This Production Report for the first quarter ended 31 March 2023 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 16 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.

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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 steelmaking coal, 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.

www.angloamerican.com