Anglo American Lowers Copper Output View Despite Rise in Production -- Update

By Christian Moess Laursen

Anglo American said its third-quarter copper output jumped, offsetting sharp declines in both diamonds and coal, but that it has slightly lowered its full-year production guidance for copper due to a fall in its output in Chile.

The mining company said Tuesday that it produced 42% more copper in the third quarter, at 209,000 metric tons, versus the preceding quarter's result, driven by a progressive increase in volumes from the Quellaveco mine. Total production rose 4% on quarter.

The Peruvian mine--one of the world's largest undeveloped copper deposits--remains on track to produced the targeted 310,000 to 350,000 tons in 2023, the FTSE 100-listed company said.

However, the steep increase in copper was offset by sharp decreases in rough diamond and steelmaking coal production, of 23% and 21%, respectively.

Unfavorable ore characteristics and an electrical substation fire at the Los Bronces mine, as well as a geotechnical fault line on El Soldado's production meant copper production from Chile fell 4%.

As a result, Anglo American lowered its full-year target range for copper production to 830,000-870,000 tons from 840,000-930,000 tons.

Realized prices for the metal--critical to the global energy transition--rose 3% to 387 U.S. cents a pound.

In a separate statement, Anglo American Platinum--the platinum group metals-focused subsidiary of Anglo American--said its production fell by 2% to 1.03 million ounces, while sales rose 2% due to a draw down in refined stock. Consequently, the unit backed its full-year view to production and costs.

Anglo American's production of nickel and iron ore fell 7% and 4%, respectively, while manganese ore output rose 4%

"Our focus is on delivering our full year production guidance in line with a planned stronger second half of the year," Anglo American Chief Executive Duncan Wanblad said.

Full-year production guidance for all metals except copper were maintained, as well as full-year costs guidance for all metals.

Write to Christian Moess Laursen at [e-mail]

(END) Dow Jones Newswires

October 24, 2023 04:15 ET (08:15 GMT)

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