AngloAmerican Investor Day Presentation Deck
Quellaveco accounting - ramp up & commercial
production
First ore, ramp up and commissioning
2022 Production
C1 unit cost - nominal
Accounting treatment considerations
Ramp up to commercial production
Accounting treatment considerations
once commercial production is
reached
First ore: October 2021, Commissioning: mid-2022 followed by 12-month ramp up
Anglo American
120-160kt (prev. 100-150kt)
~$1.25/lb1
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Inventory recognised when first ore extracted, at cost of production, including element of waste stripping
Revenue recognised in income statement² with costs of production recognised in cost of sales
Project team and ongoing direct construction costs will continue to be capitalised
Ramp-up of production levels to full design capacity is expected 12 months after first production
Mine depreciation commences
Cessation of capitalisation of borrowing costs; interest on Mitsubishi shareholder facility will be expensed in
finance costs on consolidation
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1. C1 unit cost represents all costs allocated to cost of production, and no normalization of production levels.
2. Revenue will be recognised in line with the IAS 16 amendment published in May 2020, which states that revenues generated (from first production date) by an asset in construction must be recognized in the income statement as revenue,
along with the related cost of production.
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