Anglo American Sees 2021 Production Up 14%, Costs Down 3%

By Jaime Llinares Taboada

Anglo American PLC said Friday that it expects to increase production and reduce unit costs in 2021.

The FTSE 100 miner said in an update to investors that it expects to increase production by 14% and cut costs by a further 3% next year--building on the 2% reduction expected for 2020.

In addition, Anglo American projected that it will achieve a mining Ebitda margin of around 42% for the current year, supported by cost control and strong copper and iron ore prices.

"Our balanced investment program is driving considerable business improvement, with associated emissions and water benefits, while also delivering margin-enhancing growth--taking us towards our longer-term target of a 45-50% mining Ebitda margin," Finance Director Stephen Pearce said.

Anglo American also said it expects 2021 capital expenditure of $5.7 billion-$6.2 billion, driven by 2020 deferrals, additional investment in new improvement opportunities and the targeting of critical path items for the Woodsmith polyhalite project.

Moreover, Chief Executive Mark Cutifani said he expects volume growth of 20%-25% over the next three-to-five years, including first copper production from Quellaveco in 2022.

Shares at 1143 GMT were down 26.0 pence, or 1.0%, at 2,475.0 pence.

Write to Jaime Llinares Taboada at [e-mail]; @JaimeLlinaresT

(END) Dow Jones Newswires

December 11, 2020 07:06 ET (12:06 GMT)

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