Anglo American confident of full-year targets despite weak Q1 production

ANGLO American’s copper, iron ore, manganese, PGMs and diamonds businesses all posted flat or lower quarter-on-quarter output in the three months to end-March but the effects on the bottom line will be partly offset by higher prices in most of those commodities.The group has maintained its full-year output and unit cost guidance for all commodities.Anglo American is in the process of a fundamental restructuring and sale of assets to focus on copper, premium iron ore and crop nutrients. Next week, shareholders will vote on proposals to demerge Anglo American Platinum, which will be separately listed from 2 June as Valterra Platinum. Anglo also plans to divest its interests in De Beers, “when market conditions allow”, it said.The group’s Q1 copper output dropped by 15% to 168,900 tonnes (kt), mainly due to continuing lower production from Collahuasi, in line with plans as the mine is in a transition phase. There will be an improvement in the second half of this year. Quellavico and Los Bronces were both performing well, Anglo CE Duncan Wanblad said.Production of iron ore was almost flat at 15.4 million tonnes (Q1 2023: 15.1Mt), with a good performance from Minas Rio in Brazil. In SA, Kumba Iron Ore’s production of 8.99Mt was 3% lower as finished stock was drawn down at Sishen, but it was able to lift sales by 6% to 9Mt on Transnet’s improved rail and port performance.Kumba has indicated its interest in applying for a concession to operate the iron ore rail line to Saldanha. CE Mpumi Zikalala said the group was working through the Department of Transport’s Request for Information, which has to be submitted by 9 May.Anglo American Platinum’s PGM output from its own operations fell by 8% quarter-on-quarter to 462,000oz, largely due to widespread flooding that affected production and damaged infrastructure at the Amandelbult mine. Mining operations are expected to resume from mid-year and be fully ramped up in Q3. Mogalakwena, the biggest mine, lifted output by 3% to 227,000oz. Purchase of third-party concentrate dropped 29%.After a tropical cyclone hit Anglo’s manganese operations in Australia in March, manganese ore output slumped 60% to 317kt but export sales are expected to resume in the June quarter. Production of steelmaking coal was down 41%, largely because of the underground fire at the Grosvenor mine last June and because only one month’s production from Jellinbah (Anglo has sold its stake) is included.Thanks to operational stability at Barro Alto, nickel output from Brazil rose 3% to 9.8kt. De Beers produced 11% fewer diamonds, at 6.1 million carats, in response to weak market demand.Prices of copper, iron ore and platinum have staged a sharp recovery in Q1 2025 from Q1 2024. Anglo said its realized copper price lifted by 12%, FOB iron ore by 16% and platinum by 11%. But average diamond prices have plunged 38% and steelmaking coal prices by between 34% and 42%.The post Anglo American confident of full-year targets despite weak Q1 production appeared first on Miningmx.Weiter zum vollständigen Artikel bei Mining.com Weiter zum vollständigen Artikel bei Mining.com