Headline: Anglo American Shares Surge on Steady Q3 Production and Updated Guidance
LONDON - Mining giant Anglo American plc provided a production update for the third quarter ending September 30, 2024, highlighting consistent operational performance and adjustments in production guidance. CEO Duncan Wanblad emphasized a record quarter for the Minas-Rio iron ore operation in Brazil and progress in reshaping the company's copper operations.
Citing robust operational performance, the company raised its full-year refined production guidance for platinum group metals (PGMs) to 3.7-3.9 million ounces and for nickel to 38,000-39,000 tonnes. This adjustment also includes a reduction in unit cost guidance for nickel to approximately 530 cents per pound.
Shares rose 4.7% by 14:30 London time.
Anglo American's portfolio simplification efforts are advancing, with the separation of the PGM segment on track for completion by mid-2025. The sale process for coal assets used in steel production is attracting significant interest, with the final bidders' list now determined. An announcement of a sale agreement is expected in the coming months. Recent images showing limited fire damage at the Grosvenor mine positively influenced the sale process.
The company reduced rough diamond production from its De Beers unit in response to market conditions, as the diamond market faces challenges due to high inventory levels. Production adjustments are being evaluated in collaboration with partners, with a slow market recovery anticipated.
In terms of production highlights, copper output declined by 13% during the quarter due to the planned closure of the Los Bronces facility, though it remained in line with annual guidance and was partly offset by higher grades at El Soldado. Iron ore production increased by 2%, with Minas-Rio delivering record performance for the quarter. Coal production for steel manufacturing fell by 6%, largely due to the suspension of mining activities at the Grosvenor mine following an underground fire in June 2024.
PGM operations saw a 10% decline compared to the same period last year, aligning with 2024 guidance, while nickel production rose by 6% due to improvements at Barro Alto. The diamond segment experienced a 25% reduction in rough diamond output, reflecting the current market environment.
Wanblad also highlighted the company's aim to create an investment proposition focused on copper, premium iron ore, and crop nutrients, forecasting annual copper production to exceed one million tonnes by the early 2030s.
This update offers a snapshot of Anglo American's recent performance and strategic initiatives as it navigates the dynamic commodity markets.