Anglo American on target as diamonds and iron balance copper drop

Oliver Haill Sharecast | 24 Apr, 2017 07:30 - Updated: 10:35 | | |

gahcho kue de beers anglo
  • 1,432.00
  • 0.07%1.00
  • Max: 1,466.00
  • Min: 1,414.00
  • Volume: 4,096,676
  • MM 200 : n/a
17:17 20/10/17
  • 7,523.23
  • 0.00%0.19
  • Max: 7,560.04
  • Min: 7,517.07
  • Volume: 0
  • MM 200 : n/a
17:18 20/10/17
  • 1,534.32
  • 0.29%4.43
  • Max: 1,535.85
  • Min: 1,528.94
  • Volume: 0
  • MM 200 : n/a
17:20 20/10/17
  • 17,544.38
  • -0.28%-49.07
  • Max: 17,903.87
  • Min: 17,408.07
  • Volume: 0
  • MM 200 : n/a
17:18 20/10/17
  • 4,180.73
  • 0.02%0.63
  • Max: 4,198.47
  • Min: 4,177.51
  • Volume: 0
  • MM 200 : n/a
17:18 20/10/17
  • 4,127.92
  • 0.02%0.71
  • Max: 4,144.79
  • Min: 4,124.99
  • Volume: 0
  • MM 200 : n/a
17:20 20/10/17

Copper production fell in the first quarter at Anglo American, but full year guidance was kept unchanged almost entirely across the board as amounts of iron ore, coal and diamonds unearthed all rose strongly.

Chief executive Mark Cutifani said it was "a strong operational performance" helped by the continued ramp-up of Gahcho Kué diamond mine, Minas-Rio copper mine and Grosvenor coal project, which together delivered the group a 9% increase in production on a copper equivalent basis.

Copper production of 142,600 tonnes for the three months to 31 March slipped 3% compared to the same period last year as continued strong performance at the 44%-owned Collahuasi mine in Chile was offset by increased ore hardness further south at Los Bronces and the temporary suspension of mining operations at nearby El Soldado after a mine plan was rejected by regulators, which resulted in around 3,000 tonnes of lost production.

Full year production guidance remained unchanged at 570,000-600,000 tonnes, of which El Soldado represents 50,000-60,000 tonnes.

Iron ore production rose 21% to 14.8m tonnes, with full year guidance from South Africa's Kumba unchanged at 40-42mt and 16-18mt from Minas-Rio in Brazil.

Diamond production was up 8% to 7.4m carats thanks to the contribution of Gahcho Kué in Canada and increases in response to improved demand for lower value goods in stock.

Platinum production was broadly flat at 572,000 ounces, as, following the sale of Rustenburg, production there has been treated as purchase of concentrate (which increased by 93%) rather than own mined production (which decreased by 26%).

Nickel production decreased by 12% to 9,900 tonnes due to unplanned maintenance of Barro Alto's electric furnaces, impacting throughput, so full year production guidance has been revised down to 43,000-45,000 tonnes from 45,000 tonnes.

Metallurgical coal increased by 28% to 5.2 million tonnes and, with mining having resumed at all Queensland coal operations post Cyclone Debbie but rail impact on shipments still being assessed, potential guidance downgrades could emerge in Q2 2017, analysts guessed.

Investec said the first-quarter report was generally in line with expectations, with the company running at 23-26% of mid-range of its full year targets, as would be expected this time of the year.

Analysts at Deutsche Bank had forecast Anglo would maintain copper volume flat, platinum production to be down 5%, iron ore down 14%, diamond production to remain flat and metallic coal production to be down 7%.

More news

20 Oct FX round-up: Dollar boosted by tax plans, pound rallies on Brexit hopes

President Donald Trump's tax reforms made the dollar the early story, before a sterling narrative took over as Brexit developments filtered through from the EU 27 in Brussels.

20 Oct President Trump wrongly links rise of UK crime to 'radical Islamic terror'

US President Donald Trump was accused of fuelling hate crimes after he said the UK crime rate was linked to "radical Islamic terror".

20 Oct Europe close: Stocks end near session lows despite US tax reform optimism

European stocks finished near their worst levels of the day despite optimism regarding prospects for the US economy.

20 Oct London close: Footsie ends flat as pound bounces back

London stocks finished the Friday session almost exactly flat despite encouraging noises emerging from Brussels mingled with optimism stateside over proposed tax reforms.

20 Oct Berenberg ups Cobham target but says premium valuation "unwarranted"

Despite Cobham share's outperformance over the past six months, Berenberg cautioned clients about the near-term strength of various of the firm's end-markets, alongside operational challenges that would require time to resolve and, for a time, scupper hopes that the dividend would be reinstated.

20 Oct Octagonal 'extremely pleased' as it reports record revenue and profits

Octagonal updated the market on its trading on Friday, based on the unaudited interim figures for the six months to 30 September for its wholly-owned subsidiary, Global Investment Strategy UK, saying it was “extremely pleased” with the record revenues and profits achieved.

20 Oct Marlowe trading in line as acquisitions integrate 'well'

Support services group Marlowe updated the market on its trading for the six months to 30 September on Friday, saying trading in the first six months of the financial year was in line with board expectations.

20 Oct Ncondezi agrees non-binding development offer with CMEC and GE

Ncondezi Energy announced on Friday that it has agreed - in principle - to the terms of a non-binding offer with China Machinery Engineering Corporation and General Electric South Africa to enter into exclusive negotiations to develop, construct and operate the integrated Ncondezi 300MW coal-fired power project and open pit coal mine in Tete, Mozambique.

20 Oct Virgin Money's growth prospects not reflected in share price, Barclays says

Analysts at Barclays Research believe Virgin Money's growth prospects are not reflected in the share price.

20 Oct Bacanora clears regulatory hurdle at Sonora lithium project

Lithium exploration and development company Bacanora Minerals announced on Friday that the environmental impact statement - the ‘manifestacion de impacto ambiental’ (MIA) - for its flagship Sonora Project in Mexico has been approved by SEMARNAT, the Environment Ministry of Mexico.