TOP NEWS: Anglo American Operating Near 100% At End Of Third Quarter

(Alliance News) - Anglo American PLC said Thursday it is currently operating at about 95% of its ...

Alliance News 22 October, 2020 | 10:24AM
Email Form

(Alliance News) - Anglo American PLC said Thursday it is currently operating at about 95% of its normal capacity at the end of the third quarter after adjusting to the global Covid-19 climate.

Anglo American is a global mining company with a portfolio that spans diamonds, platinum, copper, iron ore, among resources.

Copper production increased 4% in the third quarter that ended September 30 to 166,000 tonnes from 159,000 tonnes a year prior. Full-year guidance has been tightened to 630,000 to 660,000 tonnes from previous 620,000 to 670,000 tonnes.

Diamond production was down 4% to 7.2 million carats from 7.4 million carats a year before.

Platinum production decreased by 2% to 516,500 ounces from 526,800 ounces year-on-year. Palladium production was flat to the year prior at 352,200 ounces.

Platinum guidance is up at 1.7 to 1.8 million ounces from the previous 1.5 to 1.7 million ounces. Palladium guidance is up to 1.1 to 1.2 million ounces from 1.0 to 1.2 million ounces previously.

At Kumba Iron Ore Ltd, a Johannesburg-listed arm of Anglo America, iron ore production decreased by 9% to 9.5 million tonnes from 10.5 million a year prior. Anglo American said production was reduced in response to both the elevated finished stock levels at the end of the second quarter due to Covid-related rail and by port constraints, and in anticipation of the annual rail and port maintenance scheduled for the fourth quarter.

At iron ore mining project Minas-Rio in Brazil, production decreased by 18% to 5.0 million tonnes from 6.1 million a year before. This reflected a one-month planned stoppage to carry out routine internal scanning of the pipeline, Anglo American said. The inspection has been completed successfully with operations resumed at the start of October.

Metallurgical coal production decreased by 26% to 4.8 million tonnes from 6.6 million tonnes a year prior. Export thermal coal production in South Africa increased 7% to 4.6 million tonnes from 4.3 million tonnes a year before.

Production guidance for export thermal coal is revised to around 19 million tonnes, previously approximately 21 million tonnes.

Chief Executive Mark Cutifani said: "We are currently operating at about 95% of our normal capacity - testament to our efforts to protect operational continuity across our business, whilst maintaining comprehensive measures across our operations to safeguard the lives and livelihoods of our workforce and host communities, as part of our holistic response to Covid-19."

Anglo American shares were flat at ZAR422.41 each in Johannesburg, and up 1.2% at 1,973.00 pence each in London, on Thursday morning.

By Greg Roxburgh; gregroxburgh@alliancenews.com

Copyright 2020 Alliance News Limited. All Rights Reserved.

Email Form

Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Rating
Anglo American PLC 2,265.50 GBX -0.04
Kumba Iron Ore Ltd 54,903.00 ZAC 1.38 -

About Author

Alliance News

Alliance News provides Morningstar with continuously updating coverage of news affecting listed companies.

Audience Confirmation


By clicking 'accept' I acknowledge that this website uses cookies and other technologies to tailor my experience and understand how I and other visitors use our site. See 'Cookie Consent' for more detail.

  • Other Morningstar Websites
© Copyright 2020 Morningstar, Inc. All rights reserved.

Terms of Use        Privacy Policy        Cookies