Anglo American PLC on Tuesday reported stronger production on an annual basis in the first quarter of 2023, but output was lower than in the fourth quarter of 2022, reflecting seasonal patterns.
The London-based mining company posted a 15% rise in iron ore production to 15.1 million tonnes for the three months to March 31 from 13.2 million tonnes in the same period last year, driven by improved operational performance at both Kumba Iron Ore Ltd and Minas-Rio in Brazil, as well as improved rain readiness plans.
But output was down 3.8% from 15.7 million tonnes in the fourth quarter of 2022, mirroring generally seasonally slower first quarter.
In a separate filing, Kumba, in which Anglo American has a 65% stake, said its production grew by 14% to 9.4 million tonnes from 8.3 million tonnes, due to improved operational performance at Kolomela mine.
Anglo American’s copper production climbed by 28% to 178,000 tonnes in the first quarter from 140,000 tonnes a year before, reflecting the ramp-up of production from the new Quellaveco copper mine in Peru, Anglo said. But production from its operations in Chile decreased by 15%, primarily due to planned lower grades at both Los Bronces and Collahuasi.
In the fourth quarter, output dropped by 27% from 244,000 tonnes.
Steelmaking coal production was 3.5 million tonnes, up 59% from 2.2 million tonnes a year before, but down 24% from 4.6 million tonnes in the fourth quarter.
Nickel production was up 4% year-on-year to 9,700 ounces from 9,300 ounces, reflecting improved operational performance. But output slowed by 4.9% from 10,200 ounces in the fourth quarter of last year.
Rough diamond production was flat at 8.9 million carats, as planned higher grade ore and strong operational performance across most of the assets was offset by the planned completion of Venetia’s open pit in December 2022, as it transitions to underground operations during 2023, Anglo said.
Diamond production was up 8.5% from 8.2 million carats in the fourth quarter.
Manganese ore rose by 5% to 841,000 tonnes year-on-year from 804,000 tonnes, but declined by 15% from 984,000 tonnes in the fourth quarter.
In another separate filing, Anglo American Platinum Ltd, a subsidiary of Anglo American, said platinum group metals production decreased by 6% to 901,200 ounces in the first quarter from 956,000 ounces in the same quarter last year. Output was down 9.0% from 990,000 ounces in the fourth quarter of last year.
‘The first quarter performance is lower than that the same period in 2022 but aligned with what we guided previously with own-managed mines PGM production 5% lower. Production was impacted by the lower grade areas we are mining at Mogalakwena for the next three years,’ Anglo American Platinum Chief Executive Natascha Viljoen said.
Anglo American Chief Executive Duncan Wanblad said the group’s improved performance in the first quarter reflected its focus on safe and stable operational momentum through the seasonally slower first quarter of the year, which also coincides with the wet season in much of the southern hemisphere.
Anglo American kept its annual production guidance for 2023 unchanged.
Its PGM estimate ranges between 3.6 million ounces and 4.0 million ounces, compared to 4.02 million ounces in 2022.
Iron ore output is projected to be between 57 million tonnes and 61 million tonnes from 59.3 million tonnes.
Copper is guided for growth to between 840,000 tonnes and 930,000 tonnes from 664,000 tonnes, while steelmaking coal is likely to rise to between 16 million and 19 million tonnes from 15.0 million tonnes.
Diamonds production is seen slowing to between 30 million and 33 million carats from 34.6 million carats, and nickel is expected at between 38,000 tonnes and 40,000 tonnes from 39,800 tonnes.
Anglo American shares were down 2.4% at 2,451.50 pence in London on Tuesday morning. They were down 1.3% at R 560.42 in Johannesburg.
In Johannesburg, Anglo American Platinum shares were down 2.9% to R 1,070.03, while Kumba shares lost 2.0% to R 437.75.
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