Anglo American production starts to 'pick up' in Q2

Mining giant Anglo American said on Thursday that its production performance started to pick up in the second quarter, with operational momentum and the group's focus on asset resilience positioning it well for a "stronger second half".

Anglo American said rough diamond production decreased 4% year-on-year to 7.9m carats in Q2 but opted to raise full-year production guidance from 30.0m-33.0m carats to 32.0m-34.0m due to "robust demand" and its "strong" year-to-date operational performance.

The FTSE 100-listed firm stated metal in concentrate production from its platinum group metals operations was broadly flat at 1.03m ounces, with strong performances at its Unki and Mototolo projects offsetting planned lower grades at its Mogalakwena asset. Unit cost guidance was also reduced to roughly $950 per ounce, reflecting a weaker South African rand.

Copper production decreased by 21% due to planned lower grades and water availability, while iron ore production decreased by 8% after a safety intervention at Kumba's Kolomela mine, as well as planned maintenance at Minas-Rio.

Finally, steelmaking coal production decreased 12% as its replacement Aquila longwall ramped up following the planned end of production at its Grasstree site and high rainfall impacted open pit operations. Full-year guidance was revised lower to 15.0m-17.0m tonnes from 17.0m-19.0m and unit costs were revised to roughly $110 per tonne.

As of 1025 BST, Anglo American shares were down 2.38% at 2,541.50p.

Reporting by Iain Gilbert at Sharecast.com