Anglo American Production Drops in Q1, Copper Grows

Anglo American (LSE:AAL,OTCQX:NGLOY) has released its Q1 2019 production report, which showed that production was 6 percent lower in the quarter but that copper production had grown 4 percent.

Highlights from the press release are as follows:

• De Beers’ diamond production decreased by 8 percent to 7.9 million carats driven by lower production at Venetia as it transitions from open pit to underground.

• Copper production increased by 4 percent to 161,100 tonnes due to strong plant performance and planned higher grades.

• Platinum and palladium production decreased by 5 percent to 471,900 ounces and by 6 percent to 326,600 ounces, respectively, due to operational challenges as well as one-off benefits in Q1 2018.

• Kumba’s iron ore production decreased by 12 percent to 9.5 million tonnes due to plant maintenance.

• Minas-Rio’s iron ore production increased by 61 percent as its ramp-up progresses well, facilitated by access to higher grade ore in the Step 3 licence area.

• Metallurgical coal production decreased by 25 percent to 4.2 million tonnes with two longwall moves in the period compared to only one in Q1 2018.

• Thermal coal export production decreased by 2 percent to 6.6 million tonnes, with solid operational performance across the South African mines offset by lower production at Cerrejón due to dust management.

Mark Cutifani, Anglo American Chief Executive, commented:

“Production is 6 percent lower in the quarter, with two planned longwall moves at Metallurgical Coal accounting for 80 percent of the reduction. Isolated production issues at Venetia (De Beers), Kumba Iron Ore and Platinum Group Metals made up the balance, mitigated by stronger operational performance from copper, with a 4 percent production increase, and the ramp-up at Minas-Rio, which is ahead of plan following the restart of operations in December 2018. By the end of the quarter we had increased our production run-rate, are on track to deliver this year’s production targets and our guidance is unchanged.”

Click here to read the full press release from Anglo American.