Anglo American reports iron ore and manganese surge in Q2

Anglo American plc (LON:AAL) has announced its Production Report for the second quarter ended 30 June 2025.

Duncan Wanblad, CEO of Anglo American, said: “I am pleased to report another solid quarter in Copper and Iron Ore, with both businesses tracking to guidance. In Copper, we benefited from strong performance at both Quellaveco and Los Bronces, while Collahuasi improved from its first quarter. In Iron Ore, our focus on operational excellence is also continuing to drive the right results with another excellent quarter of delivery from both Minas-Rio and Kumba.

“We continue to progress with our portfolio simplification as we reshape our business for the longer term – and our reorganisation and cost reduction programmes are on track. The demerger of Valterra Platinum at the end of May has been a great success with considerable value unlocked for shareholders, and we are continuing to progress the nickel and steelmaking coal transactions. A formal process for the sale of De Beers is advancing, despite the current challenging market conditions. In Steelmaking Coal, good progress has been made at Moranbah following the event on 31 March, with a full restart expected in due course. On this basis, we continue to believe that this event does not constitute a material adverse change under our agreements with Peabody.

“Looking beyond this transitionary year, we will emerge as a highly differentiated, higher margin and more cash generative business setting us up to deliver the outstanding potential of our world class assets and resource endowments.”

Q2 2025 overview

• Copper production was 173,300 tonnes, reflecting higher production from Quellaveco in Peru as a result of higher plant throughput, offset by planned lower production in Chile, which resulted in a 11% decrease year-on-year. Quarter-on-quarter, production is 3% higher, largely due to improved performance from Collahuasi.

• Iron ore production increased by 2% to 15.9 million tonnes, primarily driven by strong performance at Minas-Rio.

• Manganese ore production increased by 109% to 745,600 tonnes, primarily due to the resumption of mining activities at the Australian operations following the damage caused by a tropical cyclone in March 2024. Export sales resumed progressively from the second half of May.

• Rough diamond production decreased by 36% to 4.1 million carats, reflecting the continued production response to the prolonged period of lower demand.

• Steelmaking coal production was 51% lower at 2.1 million tonnes, primarily due to the suspension of Grosvenor since June 2024, the sale of Jellinbah in November 2024⁷ and the event at Moranbah in March 2025.

• Nickel production decreased by 5% to 9,500 tonnes, reflecting expected lower grade.

• Production from our Platinum Group Metals (PGMs) operations decreased by 47% to 492,100 ounces. On a like-for-like basis, up to the point of demerger in May, production decreased by 18%⁶, primarily reflecting planned lower purchase of concentrate volumes, as well as the continued suspension of operations at Tumela Lower in Amandelbult following flooding earlier this year.

• Production and unit cost guidance for our continuing businesses remains unchanged, except for lower Copper Peru unit costs of c.100 c/lb (previously c.110 c/lb) which are offset by higher Copper Chile unit costs of c.195 c/lb (previously c.185 c/lb). Overall, Copper unit cost guidance is unchanged.

Production and unit cost guidance summary for 2025⁽¹⁾

(1) Production and unit cost guidance does not reflect the impact of expected disposals.

(2) Unit costs exclude royalties and depreciation and include direct support costs only. FX rates used for 2025 unit costs: c.950 CLP:USD, c.3.75 PEN:USD, c.5.75 BRL:USD, c.18.60 ZAR:USD, c.1.60 AUD:USD. Subject to macro-economic factors.

(3) Copper business only. On a contained-metal basis. Chile production is subject to water availability, and is expected to be weighted to the second half of 2025 given the impact from lower grades in the first half from Collahuasi, particularly in Q1. Unit cost total reflects a weighted average using the mid-point of production guidance. The copper unit costs are impacted by FX rates and pricing of by-products, such as molybdenum.

(4) Wet basis. Kumba production is subject to third-party rail and port availability and performance. Minas-Rio’s production guidance reflects a pipeline inspection (that occurs every five years) planned for Q3 2025. Unit cost total reflects a weighted average using the mid-point of production guidance.

(5) Production is on a 100% basis, except for the Gahcho Kué joint operation which is on an attributable 51% basis. De Beers continues to monitor rough diamond trading conditions and will respond accordingly. Unit cost is based on De Beers’ proportionate consolidated share of costs and associated production.

(6) Production guidance has not been updated as we continue to assess potential impacts from the temporary stoppage at Moranbah and excludes Grosvenor as the operation remains suspended. A walk-on/walk-off longwall move at Aquila, that will have a minimal production impact, is planned for Q3 2025. Definitive agreements to sell the entirety of the Steelmaking Coal business were announced in November 2024. Anglo American has sold its interest in Jellinbah to Zashvin Pty Limited, and this transaction completed on 29 January 2025. We have agreed to sell the remaining Steelmaking Coal portfolio to Peabody Energy. Production excludes thermal coal by-product. Steelmaking Coal FOB/tonne unit cost comprises managed operations and excludes royalties.

(7) Nickel operations in Brazil only. A definitive agreement to sell the Nickel business to MMG Singapore Resources Pte. Ltd was announced in February 2025, subject to relevant approvals.

Footnotes to front page

(1) Contained metal basis. Reflects copper production from the Copper operations in Chile and Peru only (excludes copper production from the Platinum Group Metals business).

(2) Wet basis.

(3) Anglo American’s 40% attributable share of saleable production. Q1 2025 reported production has been restated from the Q1 2025 production report to reflect the accounting basis for the South African operations.

(4) Production is on a 100% basis, except for the Gahcho Kué joint operation which is on an attributable 51% basis.

(5) Reflects nickel production from the Nickel operations in Brazil only.

(6) Produced ounces of metal in concentrate. 5E + gold (platinum, palladium, rhodium, ruthenium and iridium plus gold). Reflects own mined production and purchase of concentrate. In light of the demerger of PGMs effective 31 May 2025, Q2 2025 reflects the period 1 April – 31 May 2025. Q2 2024 comparative period is unchanged, and reflects production for the period 1 April – 30 June 2024. Like-for-like basis excludes June 2024 production from the comparative period.

(7) Anglo American’s attributable share of Jellinbah was 23.3%. Anglo American agreed the sale of its 33.3% stake in Jellinbah in November 2024, and this transaction completed on 29 January 2025. Production and sale volumes from Jellinbah post 1 November 2024, after the sale was agreed, did not accrue to Anglo American and have been excluded.