22nd Oct 2015 06:22
LONDON (Alliance News) - Anglo American PLC on Thursday reported quarter-on-quarter falls in production across most of its commodities and cut its production guidance across several divisions.
The FTSE 100-listed miner reported a 12% quarter-on-quarter fall in iron ore production from its Kumba project in the third quarter to end September to 11.4 million tonnes from 13.0 million tonnes, pushing year-to-date production to 33.9 million tonnes compared to 35.8 million tonnes a year earlier.
However, Anglo lowered its full-year 2015 guidance for the Kumba mine to 43.0 million tonnes from its previous guidance of 44.0 million tonnes.
The company also made small downward revisions to its full-year guidance for the Shishen mine to 31.0 million tonnes from its original guidance of 33.0 million tonnes, whilst upping its guidance for the Kolomela mine to 12.0 million tonnes from 11.0 million tonnes.
Iron ore production from Minas Rio totalled 2.9 million tonnes in the third quarter after restarting production. That brought year-to-date production to 5.9 million tonnes compared to nil a year earlier.
Guidance for Minas Rio was also reduced to 10.0 million tonnes from 11.0 million tonnes.
Diamond production, which contributed around 40% of the company's earnings in the first half of 2015, fell 27% quarter-on-quarter to 6.0 million carats from 8.2 million carats. Since the start of 2015, Anglo American has produced 21.6 million carats of diamonds, down 11% from the previous year.
Full-year guidance also was lowered for diamonds. Production in 2015 is expected to be around 29.0 million carats from its original guidance of 29.0 to 31.0 million carats.
Copper production dropped 3% from the previous quarter to 171,100 tonnes from 176,900 tonnes, bringing year-to-date production to 527,400 tonnes compared to 573,300 tonnes a year earlier, whilst nickel production fell 36% in the third quarter to 6,800 tonnes pushing year-to-date production to 19,800 tonnes, which is down 35% year-on-year.
Full-year 2015 copper production will be less than originally expected at 680,000 to 710,000 tonnes from 720,000 to 750,000 tonnes.
Metallurgical coal production was the only commodity alongside platinum to report a quarter-on-quarter increase. Totalling 5.5 million tonnes in the third quarter, this was up from 5.1 million tonnes, pushing year-to-date production to 15.7 million tonnes, down 2% from 16.0 million tonnes a year earlier.
Thermal coal however, was down 2% quarter-on-quarter to 8.8 million tonnes from 9.0 million tonnes. Since the start of 2015, Anglo has produced 26.1 million tonnes of thermal coal, up 5% from the 25.0 million tonnes produced a year earlier.
Coal production guidance for the full year 2015 was reiterated.
By Joshua Warner; [email protected]; @JoshAlliance
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