27th Nov 2018 14:59
LONDON (Alliance News) - Anglo American PLC on Tuesday increased its copper production guidance from its Chilean operations for the next three years up to 2021.
This is in conjunction with the announcement of the group hosting an investor visit to its copper businesses.
For 2018, the dual-listed miner expects copper production for 2018 to reach 660,000 tonnes, up from the range of 630,000 to 660,000 tonnes guided previously.
Guidance for 2019 has been tweaked to 630,000 to 660,000 tonnes from 600,000 to 660,000 tonnes previously, and for 2020 Anglo American now expects copper production in the range of 620,000 to 680,000 tonnes from 600,000 to 660,000 tonnes previously
For 2021, Anglo American has published its first guidance for the period in question, in the range of 590,000 to 650,000 tonnes.
Unit cost guidance for 2018 has been lowered to 140 US cents per pound from 145 cents per pound, while 2019 guidance is in the range of 135 to 140 cents per pound.
In addition, Anglo American said it expects to add the first production from its Quellaveco mine in Peru in 2022, and will produce 300,000 tonnes of copper equivalent per year, at a cash cost of USD1.05 per pound of copper on average over the mine's first ten years.
Quellaveco has a current reserve life of 30 years.
"We expect the supply of copper to become further constrained in the years and decades ahead as the key ingredient in the fast-growing renewable energy and electric vehicle markets, in addition to the infrastructure, housing and consumer electronics markets that continue to be fuelled by the world's fast-expanding middle class population. The world-class quality of our copper assets and our many options for disciplined growth position Anglo American well to meet that significant additional demand," said Chief Executive Mark Cutifani.
Shares in Anglo American were down 2.3% at ZAR271.75 in Johannesburg, while London shares were down 1.6% at 1,538.00 pence on Tuesday.
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