Anglo American PLC on Thursday reported mixed quarterly production performance, with most commodities declining amid a challenging operating conditions.

Its shares lost 1.8% to 2,722.00 pence in London early on Thursday. They were down 0.7% at R 567.46 in Johannesburg.

As it enters the final stretch of its financial year, the mining giant kept its annual production guidance mostly unchanged.

For the third quarter that ended September 30, rough diamond production increased by 4% to 9.6 million carats from 9.2 million carats in the prior year, mainly reflecting the treatment of higher grade ore at Orapa, as well as continued strong performance in Namibia.

Steelmaking coal production rose by 28% to 5.5 million tonnes from 4.3 million tonnes on the back of the ongoing ramp-up of the longwall operations.

But copper output was lower at 147,000 tonnes in the third quarter, down 6% from 157,000 in the prior year due to planned lower grades at all the group’s operations in Chile, as well as unfavourable ore characteristics at Los Bronces, partly offset by the first production of copper from Quellaveco in Peru.

Nickel production fell by 4% 10,000 tonnes to 10,400 tonnes, primarily due to lower grades.

Turning to platinum group metals, production in this category decreased by 6%, hurt by electricity loadshedding in South Africa, infrastructure closures at Amandelbult and lower grade at Mogalakwena.

In a separate filing, Anglo American Platinum Ltd said total PGMs production decreased by 6% to 1.05 million ounces from 1.12 million in the same quarter last year.

‘Eskom power outages have affected both concentrators and smelters, resulting in a loss in production, as well as a build-up in work-in-progress inventory of 40,400 PGM ounces,’ Anglo American Platinum Chief Executive Natascha Viljoen.

Anglo American said iron ore production decreased by 5% primarily due to Kumba Iron Ore Ltd, which was hit by the slow ramp-up after the safety intervention in the second quarter and loadshedding, while production at Minas-Rio was flat.

Separately, Kumba said production dropped by 8% to 10.0 million tonnes in the third quarter from 10.8 million tonnes in the prior year.

Anglo American Chief Executive Duncan Wanblad said the group is focused on maintaining this operational momentum to deliver its full-year production guidance.

‘We do continue to feel the effects of dislocations in the global economy on our business - in energy and across supply chains and labour markets - and are planning accordingly for 2023, confident in the strategic position of our business,’ Wanblad said.

Diamond production guidance for 2022 is unchanged at 32 million carats to 34 million carats, compared to 32.3 million carats.

Annual copper forecast is also unchanged at 640,000 tonnes to 680,000 tonnes for 2022, subject to the extent of further Covid-19 related disruptions and progress on ramp-up of operations in Peru. In 2021, copper output was at 647,000 tonnes.

Nickel production is expected to be towards the lower end of the guidance range of 40,000 tones and 42,000 tonnes for 2022, from 41,700 tonnes in 2021.

PGM production guidance is unchanged at 3.9 million ounces to 4.3 million ounces for 2022. In 2021, PMG output was at 4.29 million ounces.

Full-year coal production is expected to be towards the lower end of the guidance range of 15 million tonnes to 17 million tonnes for 2022, subject to the extent of further unseasonal wet weather, continued tight labour markets and Covid-19 related disruptions. Coal output was at 14.9 million tonnes in 2021.

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