Anglo American maintains FY outlook despite fall in Q1 production
Source - SMW
Anglo American kept its guidance on full-year production unchanged despite reporting a fall in first-quarter copper equivalent production, driven by slump in metallurgical coal production.
In three months through March, copper equivalent production fell 6%, with two planned longwall moves at metallurgical coal accounting for 80% of the reduction, the company said.
Metallurgical coal production decreased by 25% to 4.2m tonnes, but guidance for the year full remained unchanged at 22-24m tonnes.
De Beers' diamond production decreased by 8% to 7.9m carats driven by lower production at Venetia as it transitions from open pit to underground. But production guidance for the full year was unchanged at 31-33m carats.
Platinum and palladium production decreased by 5% to 471,900 ounces and by 6%) to 326,600 ounces, respectively, due to operational challenges as well as one-off benefits in Q1 2018.
Thermal coal export production decreased by 2% to 6.6m tonnes, and Kumba's iron ore production decreased by 12% to 9.5m tonnes due to plant maintenance, the company said.
But there were some bright spots with copper production up 4% to 161,100 tonnes due to 'strong plant performance and planned higher grades,' the company added.
Copper production guidance was also unchanged at 630,000-660,000 tonnes.
'Production is 6% lower in the quarter, with two planned longwall moves at Metallurgical Coal accounting for 80% of the reduction,' said Mark Cutifani, Chief Executive of Anglo American.
'Isolated production issues at Venetia (De Beers), Kumba Iron Ore and Platinum Group Metals made up the balance, mitigated by stronger operational performance from Copper, with a 4% production increase, and the ramp-up at Minas-Rio, which is ahead of plan following the restart of operations in December 2018.;
'By the end of the quarter we had increased our production run-rate, are on track to deliver this year's production targets and our guidance is unchanged.'
At 8:03am: (LON:AAL) Anglo American PLC share price was -13.5p at 2067p