Markets

Anglo American Q3 Production Up 4% On Copper Equivalent Basis - Quick Facts

(RTTNews) - Anglo American plc (AAUKY.PK, AAL.L) Tuesday reported a 4 percent increase in total production on a copper equivalent basis for the third quarter of 2019 compared to the year-ago period, reflecting the continued successful ramp-up at Minas-Rio and strong performance at Metallurgical Coal.

Meanwhile, copper production for the quarter declined by 8 percent to 158,900 tonnes due to unprecedented drought conditions impacting Los Bronces in Chile.

De Beers' diamond production decreased by 14 percent to 7.4 million carats due to planned mine closures and the underground transition at Venetia, and as the company continued to produce to weaker market demand due to macro-economic uncertainty as well as continued midstream weakness.

Iron ore production from Kumba was unchanged from last year at 10.5 million tonnes as planned, as increased production at Sishen was offset by lower production at Kolomela due to a plant upgrade. Iron ore production at Minas-Rio reached 6.1 million tonnes.

Metallurgical coal production in the quarter rose 22 percent from last year to 6.6 million tonnes, reflecting improved wash plant throughput and equipment efficiency, as well as timing of longwall moves.

Looking ahead, Anglo American said its 2019 production outlook for Kumba Iron Ore is unchanged at 42 million to 43 million tonnes. The company raised Minas-Rio production outlook for 2019 to a range of 20 million to 22 million tonnes from the prior range of 19 million to 21 million tonnes, based on continued strong performance.

"We remain broadly on track to deliver within our full year production targets, with an increase in production guidance at Minas-Rio. We expect to deliver to our production guidance for Copper and Thermal Coal, albeit at the lower end of their ranges; with Copper working to mitigate the effect of drought conditions in central Chile," Mark Cutifani, Chief Executive of Anglo American, said.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.