Published: Wed, October 26, 2016
Economy | By Melissa Porter

Anglo American plc: Q3 2016 production report

Anglo American plc: Q3 2016 production report

Commenting on the group's total production metrics for the quarter, Anglo American CEO, Mark Cutifani, said: "Operational improvements continue across the portfolio delivering a 4% production increase on a copper equivalent basis".

"In our diamond and platinum businesses, we continue to maintain discipline on volumes by mining to demand, whilst the ramp-ups at Minas-Rio and Grosvenor are progressing well, and Barro Alto has now reached nameplate capacity", he said.

Production from the De Beers diamond subsidiary was broadly flat as a 12% quarter-on-quarter fall in carats out of the main contributor, the Debswana joint venture in Botswana (4.55 million carats), was more than offset by production from South Africa, Namibia and Canada. For its De Beers diamond unit, it said market conditions had improved after a hard 2015 and output had been increased by 4 percent to 6.3 million carats compared with the third quarter a year ago. Full Year guidance at Minas Rio was unchanged at some 15 to 17Mt.

At some 619,000 ounces, platinum production from Anglo American Platinum, in which Anglo has an 80% stake, was 1% higher compared to the third quarter in Amplats' previous financial year.

Full-year Sishen production guidance remains at 27-million tonnes and waste removal of between 135-million tonnes and 150-million tonnes is forecast.

Shares on the JSE closed 2% higher at R185.61 per share, despite coming off in late afternoon trade as the pound gave way to the rand.

Refined platinum production rose 14% to 694 600 oz on additional matte material that built up during the Section 54 first-quarter safety stoppage at the Precious Metals Refinery. - Copper production from the retained operations decreased by 9% to 139,800 tonnes. The forecast for full-year nickel output was maintained, while the estimate for thermal-coal exports from South Africa and Colombia was kept at 28 million to 30 million tons.

Attributable production from the Collahuasi copper mine, in Chile, rose 31% to 57 000 t on higher 1.23% grades and continued strong plant performance, but production at the El Soldado copper mine, in Chile, fell 3% to 10 700 t following a 13-day strike having a 4 000 t negative impact on output. Anglo American lowered full-year production guidance for export metallurgical coal to 20.5-21.5 million tonnes from 21-22 million following the completion of the Foxleigh sale in Australia at the end of August.

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