Anglo American Reports Mixed 3Q Production; Lowers Platinum Guidance

By Adria Calatayud Features Dow Jones Newswires

Anglo American PLC (AAL.LN) reported Tuesday mixed production figures across its divisions, with a sharp rise in diamond output and declines in nickel and iron ore, while it also lowered full-year guidance for platinum.

Continue Reading Below

The globally diversified miner said its output increased 6% on a copper-equivalent basis for the three months ended Sept. 30. This compares with an 8% year-on-year increase in copper-equivalent production for the second quarter of this year and a 4% rise in the same metric for the third quarter of 2016.

Anglo American's production of diamonds grew 46% to 9.2 million carats. The company said that stable trading conditions supported increased output at its De Beers diamond unit, driven by the Debswana joint venture--owned by De Beers and the government of Botswana--and a ramp-up at its Gahcho Kue mine in Canada.

Iron-ore production stood at 15.7 million tons, down 4% on year. Iron-ore output at the Kumba subsidiary was 2% lower than in the third quarter of 2016, at 11.5 million tons, while at the Minas-Rio project in Brazil it declined 6% to 4.2 million tons.

Anglo American reported a 15% decline in export thermal-coal production to 6.3 million tons, and a 9% rise in export metallurgical-coal to 5.5 million tons.

The miner said its platinum output was flat at 621,000 ounces. Anglo American's copper production rose 5% to 147,300 tons, while nickel output was 1% down year on year to 11,200 tons.

Continue Reading Below

Looking ahead, the mining giant lowered its full-year guidance for platinum to 2.30 million-2.35 million ounces following the closure of unprofitable production at the Bokoni mine in South Africa. The company also raised guidance for iron ore at Kumba to 42 million-44 million tons as it reaffirmed expectations for the remaining divisions.

Write to Adria Calatayud at adria.calatayudvaello@dowjones.com

(END) Dow Jones Newswires

October 24, 2017 02:58 ET (06:58 GMT)