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Anglo American sees decline in nickel and copper production-18th China(Guangzhou)Int¡¯l Non-Ferrous Metal£¨Copper£©Exhibition
4/27/2017 Copper exhibition -non-ferrous metals expo |
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Anglo American PLC said its full-year guidance remains intact for its major
commodities as it reported lifts in production from most of its divisions in the first
quarter of 2017, with only copper and nickel experiencing year on year falls. While
the miner managed to maintain annual guidance for almost all of its commodities
after the first quarter of the year, the miner had to reduce its target for nickel
following unplanned maintenance work. Although it kept its copper target for the
year, the division was the only other area to report a decline in production to
represent the other disappointment in the period.
The blue-chip miner is in the slow-but-steady process of restructuring its
commodity portfolio to focus on just three core commodities diamonds, platinum
and copper. In the first three months of 2017, diamond production was up 8% year-
on-year, and platinum output was up 1%, but copper production was 3% lower.
Diamond production totaled 7.4 million carats in the quarter versus 6.9 million
carats a year earlier, while platinum output totalled 572,000 ounces compared to
567,000 ounces. Copper production dropped to 142,600 tonnes from 146,500
tonnes in the prior year.
Anglo American said rough diamond production increased due to the contribution
from Gahcho Kue in Canada, as well as production lifts in response to improved
trading conditions. With the miner''s De Beers unit producing to meet demand,
positive trends in the market are all the more significant.
Sales reports that have already been released from the 85%-owned De Beers unit
showed the first sales cycle of 2017 generated USD729.0 million in sales while the
second generated USD553.0 million. The third generated USD580.0 million in
sales. Anglo American lengthened the first sales cycle of the year to maximise the
amount of sales, which appeared successful as it generated the highest individual
sale total since July 2014.
Full year guidance for diamonds remains unchanged at 31 to 33 million carats, but
this is still subject to trading conditions as Anglo American looks to retain as much
value as possible.
Platinum production experienced the slightest of lifts in the period. Following the
previous sale of the Rustenburg operation in South Africa, Anglo American has
treated the production from that asset as purchased concentrate rather than its
own mined material.
As a result of the portfolio shift, Anglo American reported a 93% lift in purchased
concentrate in the period while mining 26% less of its own material.
Refined platinum production, however, more than doubled to 576,900 ounces from
260,800 ounces after the first quarter of 2016 was hampered by safety stoppages.
Full year guidance remains unchanged at 2.35 million to 2.40 million ounces of
platinum metal in concentrate.
-18th China(Guangzhou)Int¡¯l
Non-Ferrous
Metal£¨Copper£©Exhibition
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