Anglo American 4Q Production Mainly Rose -- Commodity Comment

Anglo American PLC on Thursday reported a rise in fourth-quarter production of most of its commodities compared with the same period a year earlier, with the exception of iron ore and platinum group metals. Here's what the FTSE 100-listed mining company had to say:

On copper production:

"Copper production increased by 52% to 244,300 tonnes, due to the ramp-up of production from Quellaveco in Peru, while Chile's production was broadly flat."

On rough diamond production:

"Rough diamond production increased by 6%, reflecting strong operational performance, particularly at Jwaneng, which was partially offset by the planned completion of the final cut at Venetia's open pit."

On steelmaking coal production:

"Steelmaking coal production increased by 6% to 4.6 million tonnes, primarily due to the ramp-up of the Grosvenor longwall operation following its restart in February 2022."

On iron-ore production:

"Iron ore production increased by 4% to 15.7 million tonnes, reflecting a 7% increase at Minas-Rio and a 3% increase at Kumba."

On metal in concentrate production:

"Metal in concentrate production from our Platinum Group Metals (PGMs) operations decreased by 10%, due to the impact of lower grades at Mogalakwena and planned infrastructure closures at Amandelbult."

On nickel production:

"Nickel production decreased by 4% to 10,200 tonnes, primarily due to planned annual maintenance at Barro Alto as well as the impact of high rainfall in December."

On prices:

"The full year average realized price for nickel of $10.26/lb was 12% lower than the market price, primarily reflecting the ferronickel discount to LME grade nickel."

"The full year average realized basket price was $2,551/PGM ounce, reflecting lower market prices."

"The full year average realized price for hard coking coal was $310/tonne, which was lower than the benchmark price of $364/tonne."

"The price realization was lower at 85% (2021: 93%) driven by a higher volume of premium hard coking coal being produced and sold in the second half of 2022 when the benchmark price was lower."

On 2023 guidance:

"Production guidance is for 2023 is 30-33 million carats (100% basis), subject to trading conditions."

"Unit cost guidance for 2023 is c.$80/ct."

Write to Ian Walker at [e-mail]

(END) Dow Jones Newswires

February 02, 2023 03:29 ET (08:29 GMT)

Copyright (c) 2023 Dow Jones & Company, Inc.