Shore Capital expects 'negative reaction' after Anglo American's Q4 output declines

Broker Shore Capital said it expected a “negative market reaction” after mining giant Anglo American reported a decline in output in the fourth quarter.

The London-based group said reported fourth-quarter drops in the production of iron ore, metallurgical coal, copper and nickel, while thermal coal and platinum group metals were slightly higher.

In 2014, the FTSE 100 miner said it produced 48.9m metric tonnes of iron-ore, surpassing its guidance of 45m to 46m tonnes.

However, Shore noted that the decline in production in the fourth-quarter compared to the previous three months "will exacerbate [the] effect of falling commodity prices".

"Not really what we wanted to see, particularly given the general weakening in commodity prices,” it said in a note on Wednesday.

Anglo American shares were up 1.93% to 1,111.00 at 11:32 on Wednesday, having fallen from above 1,600p in the last six months.