Anglo American lowers production guidance after Q1 output falls 10%

Anglo American lowered annual production guidance after a 10% fall in first-quarter output, reflecting Covid-related staff shortages, high rainfall in South Africa and Brazil, and issues at its metallurgical coal and iron ore operations.

The company on Thursday forecast platinum group metals (PGM) production to 3.9 million - 4.3 million ounces from 4.1m-4.5m.

Iron ore production was revised downwards to 60 million - 64 million tonnes from 63m-67m. First quarter output fell 19% as rainfall and plant issues affected operations in South Africa and Brazil.

Full year cost guidance was lifted 9%, reflecting a 4% impact from stronger producer currencies and 3% from inflationary pressures, particularly diesel, as well as revisions to volume guidance.