The Lemon Fool

Anglo American plc ("Anglo American") announces that De Beers Group ("De Beers") and the Government of the Republic of Botswana ("the Government of Botswana") have reached an agreement in principle on a new 10-year sales agreement for Debswana's rough diamond production (through to 2033) and a 25-year extension of the Debswana mining licences (through to 2054).

Debswana operates four diamond mines in Botswana and is a 50:50 joint venture between De Beers and the Government of Botswana.

De Beers and the Government of Botswana will work together to progress and implement the formal new sales agreement and mining licences. In the interim, the terms of the most recent sales agreement (which expired on 30 June) will remain in place.

A new sales agreement between De Beers and the Government of Botswana constitutes a related party transaction under the UK Listing Rules, given that both Anglo American and the Government of Botswana are shareholders in De Beers, and therefore will be subject to approval by Anglo American's shareholders in due course.

Anglo American plc announces the value of rough diamond sales (Global Sightholder Sales and Auctions) for De Beers' seventh sales cycle of 2023, amounting to $370 million.

Interim Dividend of 55 US cents per ordinary share

(Dividend no 43)

Amounts per ordinary share in Sterling and Euros - CORRECTION

The announcement of 8 September 2023 of the Sterling and Euro equivalent rates for payment of the Interim 2023 dividend (the "Interim Dividend"), misstated the equivalent Euro cents per share rate. It should have stated the rate is 51.199 Euro cents per share as outlined in the amended announcement below. All other details remain unchanged.

Interim Dividend of 55 US cents per ordinary share

(Dividend no 43)

Amounts per ordinary share in Sterling and Euros

Further to the announcement of 27 July 2023 of an interim dividend of 55 US cents per ordinary share, the equivalent of the dividend detailed above in Sterling is 43.830 pence per share and in Euros is 51.199 Euro cents per share based on exchange rates of US$1=£0.7969 and US$1=€0.9309.

The payment date of the dividend is Tuesday, 26 September 2023.

8 December 2023

Anglo American unlocks value through operational, cost and capital discipline

Anglo American plc ("Anglo American") is today providing an update on its performance during 2023 and setting out capital expenditure and production guidance for the next three financial years.

Duncan Wanblad, Chief Executive of Anglo American, said: "The prospects for mined products have rarely looked better. In the near term, given continuing elevated macro volatility, we are being deliberate in reducing our costs and prioritising our capital to drive more profitable production on a sustainable basis. We are focused on what we can control - safety, operational discipline and capital allocation. We are confident in our actions to sustain the competitiveness of our world class assets and deliver on our outstanding growth opportunities in the metals and minerals that are so critical now and for generations to come.

"We are building a platform for strengthened and sustainable operational and financial performance. We took early action in 2023 to increase business resilience in the face of ongoing economic and geopolitical volatility and the current cyclical weakness in PGMs and diamonds. As a result, we have already gone a long way towards reducing our business support costs by $0.5 billion by mid-2024, with an additional $0.5 billion in annual cost efficiencies identified across our global businesses that we expect to deliver in 2024.

Anglo American plc announces the value of rough diamond sales (Global Sightholder Sales and Auctions) for De Beers' tenth sales cycle of 2023, amounting to $130 million.

Anglo American and Finnish Minerals Group have signed a memorandum of understanding ("MOU") to work together to explore opportunities to further support Finland's battery strategy. Finnish Minerals Group is a holding and development company that manages the Finnish Government's mining industry shareholdings and supports the development of the Finnish battery value chain.

Duncan Wanblad, Chief Executive of Anglo American, said: "We were pleased with the performance in the first quarter, with copper production increasing by 11% as Quellaveco achieved its highest plant throughput rate, while Collahuasi and El Soldado in Chile benefitted from higher grades. Steelmaking coal production also increased by 7%, due to the performance at the Aquila longwall and Capcoal open cut operations. De Beers implemented changes to lower its diamond production for the year by c.3 million carats which, combined with lower production from our PGMs operations, resulted in flat(1) production overall for the Group compared to the same period of last year.

"We are driving operational excellence across our assets, focusing on stability and effective cost management as levers to deliver significant value through the cycle. We are progressing through our asset review to optimise value by simplifying and improving the overall quality of the portfolio. With copper now representing 30% of our total production, and having the benefit of several well-sequenced and value-accretive copper growth options within our portfolio over the medium-term, we are also setting up the business to deliver and grow into the major demand themes."

Mining giant BHP has approached its rival Anglo American about buying the 107-year-old mining company in what could rank as this year’s biggest deal.

London-listed Anglo American said this morning it received an unsolicited all-share merger proposal from the world’s biggest miner, confirming media reports about a potential bid.

Anglo’s board is reviewing the proposal and cautioned that there is no certainty a binding offer will be made. BHP’s proposal was conditional on Anglo first splitting off its South African platinum and iron ore units, the statement said.

The Board of Anglo American notes the recent press speculation and confirms that it is has received an unsolicited, non-binding and highly conditional combination proposal from BHP Group Limited ("BHP").

The proposal comprises an all-share offer for Anglo American by BHP and would be preceded by separate demergers by Anglo American of its entire shareholdings in Anglo American Platinum Limited and Kumba Iron Ore Limited to Anglo American shareholders. The two parts of the proposal would be inter-conditional.

The Board is currently reviewing this proposal with its advisers.

Further to the announcement by Anglo American plc ("Anglo American") on 24 April, the Board of Anglo American (the "Board") provides an update regarding the unsolicited, non-binding and highly conditional combination proposal from BHP Group Limited ("BHP") (the "Proposal").

The Proposal comprised an all-share offer for Anglo American by BHP, with a requirement for Anglo American to complete two separate demergers of its entire shareholdings in Anglo American Platinum Limited and Kumba Iron Ore Limited to Anglo American shareholders. The all-share offer and required demergers would be inter-conditional.

The Board has considered the Proposal with its advisers and concluded that the Proposal significantly undervalues Anglo American and its future prospects.

In addition, the Proposal contemplates a structure which the Board believes is highly unattractive for Anglo American's shareholders, given the uncertainty and complexity inherent in the Proposal, and significant execution risks.

The Board has therefore unanimously rejected the Proposal.

The Board of Anglo American (the "Board") notes the announcement made by BHP Group Limited ("BHP") and confirms that on 7 May 2024 it received a second unsolicited, non-binding and highly conditional combination proposal from BHP (the "Latest Proposal").

The structure of the Latest Proposal is unchanged from the proposal previously rejected on 26 April 2024. This comprises an all-share offer for Anglo American by BHP, with a requirement for Anglo American to complete two separate demergers of its entire shareholdings in Anglo American Platinum Limited and Kumba Iron Ore Limited to Anglo American shareholders. The all-share offer and required demergers would be inter-conditional.

Under the terms of the Latest Proposal, for each Anglo American share owned, Anglo American shareholders would receive:

- 0.8132 BHP shares; and

- Ordinary shares in each of Anglo American Platinum Limited and of Kumba Iron Ore Limited (distributed by Anglo American to its shareholders in direct proportion to Anglo American shareholders' effective interest in Anglo American Platinum Limited and Kumba Iron Ore Limited).

The Board has considered the Latest Proposal with its advisers and concluded that it continues to significantly undervalue Anglo American and its future prospects.

Anglo American plc ("Anglo American") is today setting out a clear, compelling and decisive plan to unlock significant value from its portfolio and accelerate the delivery of consistently stronger shareholder returns.

Following completion of the asset review initiated during 2023, Anglo American plans to implement a number of major structural changes to accelerate delivery against its strategic priorities of operational excellence, portfolio simplification, and growth:

Update on BHP's offer for Anglo American

On 22 May 2024, BHP Group Ltd (BHP) announced a revised proposal for a combination with Anglo American plc (Anglo American) and the Board of Anglo American announced an extension to the deadline for BHP to make an offer for Anglo American to 29 May 2024 (Deadline).

BHP welcomed the extension as it provided the opportunity to engage with Anglo American about its concerns regarding BHP's proposal. Since the extension to the deadline, BHP has continued to work extensively to address those matters. This has included several engagements with Anglo American and its advisers.

BHP Group Ltd (BHP) confirms that it does not intend to make a firm offer for Anglo American plc (Anglo American).

Further to the announcement made this morning by Anglo American plc ("Anglo American") in relation to a potential offer from BHP Group Limited ("BHP"), the Board of Anglo American (the "Board") notes the announcement from BHP confirming that it does not intend to make an offer for Anglo American. As a result, BHP is bound by the restrictions set out in Rule 2.8 of the Takeover Code.

Stuart Chambers, Chairman of Anglo American, commented:

"Anglo American has set out a clear pathway to accelerate delivery of its strategy and to unlock significant value for its shareholders. Our shareholders will benefit from value transparency and undiluted exposure to a simpler portfolio of world class assets, consistently stronger operational performance, and highly attractive growth in copper, premium iron ore and crop nutrients. Anglo American's management team, supported by the Board, is fully focused on delivering the plans it has set out to accelerate value delivery, and doing so at pace.

"I thank Anglo American's shareholders and stakeholders for their constructive dialogue throughout this period, and our employees for their resilience and commitment. We look forward to delivering our plans for the benefit of our shareholders and for stakeholders, both in our host countries and more broadly."