Anglo sticks to most 2020 output targets despite second quarter COVID-19 hit

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LONDON, July 16 (Reuters) - Global miner Anglo American AAL.L on Thursday stuck to its full-year guidance for copper, other metals and diamonds even as it posted an 18% decline in overall second quarter output due to coronavirus lockdowns.

In the three months to the end of June, production of diamonds, platinum, palladium, iron ore, coal and manganese fell, while copper and nickel rose.

Anglo said it was ramping up production and operating at about 90% total capacity by the end of June from around 60% in April.

The miner maintained its production outlook for the year for all its products but not for coal, saying further disruptions were subject to coronavirus.

Government lockdowns in Botswana, Namibia and South Africa hit the output of diamonds, platinum group metals, iron ore and thermal coal, Anglo said.

Diamond production at the De Beers unit plunged 54% in the quarter to 3.5 million carats, although the company kept annual targets unchanged.

In April, Anglo cut capital expenditure and trimmed much of its 2020 output targets.

In addition to coronavirus-related shutdowns, Anglo American Platinum AMSJ.J was hurt by repairs and ramp-up of a converter plant.

Copper output rose 5% to 167,000 tonnes compared to a year ago due to a 38% rise in output at its Collahuasi mine in Chile.

(Reporting by Zandi Shabalala; Editing by Alex Richardson and Edmund Blair)


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

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