23rd Apr 2015 09:46
LONDON (Alliance News) - Anglo American PLC Thursday reported a rise in iron ore, platinum and diamond production in the first quarter and reiterated its full-year guidance across all of its segments bar diamonds, despite copper and nickel production falling and coal giving mixed results.
The FTSE 100-listed miner said iron ore production rose at both the Kumba and Minas-Rio mines, with thermal coal, diamond and platinum production also rising, whilst metallurgical coal, copper and nickel production fell year-on-year in the first quarter.
Anglo American said all of its unit guidance remains unchanged for the full year apart from diamond production, which has been reduced to between 30 million to 32 million carats compared with its original guidance of 32 million to 34 million carats.
Iron ore production at Kumba rose by 7% to 12.2 million tonnes in the first quarter, compared with 11.3 million tonnes a year earlier, whilst production at Minas-Rio totalled 1.2 million tonnes. The Minas-Rio mine was not producing a year earlier.
For the full year, the company is aiming to produce 47 to 48 million tonnes of iron ore from Kumba and 11 to 14 million tonnes from Minas-Rio.
Thermal coal production rose 11% to 8.7 million tonnes, from 7.9 million tonnes in the first quarter of 2014, due to increased productivity and a change in product mix in Australia. However, metallurgical coal production fell 17% to 5.0 million tonnes from 6.1 million tonnes after the Peace River Coal operation in Canada was put on care and maintenance in the fourth quarter of 2014 and Australian production was hit by tropical cyclone Marcia.
Coal production is set to be between 20 to 21 million tonnes of metallurgical coal and 28 to 30 million tonnes of thermal coal.
Copper production fell by 15% to 171,800 tonnes in the first quarter from 202,000 tonnes, which the company said was expected as a result of the decision to take the smaller of Los Bronces' two processing plants offline for 51 days in the quarter to manage water reserve levels.
Its copper production target for the year is 720,000 to 750,000 tonnes.
Nickel production experienced the biggest decline of 27% to 6,700 tonnes from 9,200 tonnes a year earlier, which was also expected due to the scheduled rebuild of the Barro Alto furnaces, which is under way and on track for completion in the fourth quarter of 2015.
Platinum production rose 50% to 536 equivalent ounces from 357 ounces. This was due to strike action impacting production in the first qaurter of 2014. Diamond production experienced a small 2% increase to 7.7 million carats from 7.5 million, driven by higher grades at Venetia.
Nickel production is expected to come in at around 20,000 to 25,000 tonnes for the full year with platinum coming in at 2.3 to 2.4 million tonnes.
Anglo American shares fell by 0.6% to 1,007.50 pence per share on Thursday morning.
By Joshua Warner; [email protected]; @JoshAlliance
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