Anglo American share price lifts as most guidance goes unchanged but copper production drags at the mining giant
Anglo American shares rose more than three per cent today, after the troubled miner said most of its output guidance was broadly unchanged on the last quarter.
The figures
The FTSE 100-listed group made mixed progress with an ongoing plan to streamline the company to focus on copper, diamonds and platinum.
Production at Anglo's diamond business, De Beers, increased by four per cent to 6.3m carats in the quarter ending 30 September, up from 6m carats in the same period of last year due to "improved market conditions".
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However, its copper business dipped nine per cent to 139,800 tonnes, as expected lower grades of material and the impact of strikes of two of its sites set off strong performances elsewhere in its copper operations.
Platinum production was "broadly unchanged", growing by one per cent, though refined production rose by 14 per cent following recovery at its Precious Metals Refinery.
Elsewhere, nickel production rose 66 per cent to 11,300 tonnes in the quarter, while iron ore production at Minas-Rio in Brazil lifted 53 per cent and iron ore production at Kumba in South Africa rose by three per cent.
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Shares in the miner were up 3.5 per cent to 1,102.75p in early afternoon trading.
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Why it's interesting
While Anglo's production mostly rose in the quarter and it has retained most of its output guidance for its full-year results, the mining giant has lowered its full-year guidance for export metallurgical coal production to between 20.5m and 21.5m tonnes.
Read more: Anglo American under pressure to hive off its South African operations
This is down from 21m to 22m and follows the sale of its Foxleigh mine in Queensland in August.
Thermal coal has been the best performing commodity of the year, recently reaching $100 per tonne for the first time since 2012 after cuts to the number of working days at domestic mines in China prompted electricity generators and steelmakers in the country to increase imports.
What Anglo said
Chief executive Mark Cutifani said:
Operational improvements continue across the portfolio, delivering a four per cent production increase on a copper equivalent basis in the third quarter and a 12 per cent increase compared to the second quarter.
In our diamond and platinum businesses we continue to maintain discipline on volumes by mining to demand, whilst the ramp-ups at Minas-Rio and Grosvenor are progressing well, and Barro Alto has now reached nameplate capacity.