Anglo American reports bumper first half numbers, although copper softens

Anglo American posted an 8% year-on-year increase in copper-equivalent production in its second quarter, it said on Thursday, with copper-equivalent production for the half year to 30 June up 9% over the same period in 2016.

The FTSE 100 company reported that the ramp-up of Gahcho Kué, as well as stable trading conditions, led to a 36% improvement in rough diamond production at its De Beers division.

“We have delivered another strong production quarter across most of our businesses,” said chief executive Mark Cutifani.

“Through the improvements we have made to our portfolio and the efficiencies we are driving, we continue to unlock the potential of our world class assets.”

Its board said copper production, although “broadly unchanged”, was impacted by a temporary mine stoppage at El Soldado, which was partly offset by higher production at Los Bronces.

At its platinum division, production at the Mogalakwena mine was up 15%, which the board said was a result of higher grades and increased throughput, while iron ore volumes at Sishen were 38% higher due to operational improvements.

Metallurgical coal production from Australia was impacted by Cyclone Debbie, Anglo American explained, along with two longwall moves in the second quarter and ongoing geological issues at Grosvenor.

It expected improvements in its Australian operations in the second half.

“The production ramps at Gahcho Kué, Minas-Rio and Grosvenor are also contributing to these ongoing positive performance trends,” Cutifani added.

Looking at the raw figures, diamond production was up 36% year-on-year in the second quarter to 8.7 Mct, and up 21% year-on-year in the first half to 16.1 Mct.

Copper was down 2% in the second quarter at 140,800 tonnes, and off 3% in the first half at 283,400 tonnes, while platinum production was up 5% to 617 koz in the quarter and 3% to 1,189 koz in the half.

Iron ore at Kumba surged 28% in the second quarter and 23% in the first half to 11.4 Mt and 21.9 Mt respectively, while at Minas-Rio it was up 24% in the quarter and 27% in the half to 4.3 Mt and 8.7 Mt.

Export metallurgical coal slid 19% in the second quarter to 4 Mt, while export thermal coal was off 4% in the same period to 6.5 Mt.

Those two readings were ahead 2% and 1% in the first half respectively, to 9.2 Mt and 13.4 Mt.

Nickel tonnage rose 2% in the second quarter to 11,300 tonnes, although it fell 5% to 21,200 tonnes in the six months to 30 June.

“We have increased the full year production guidance for Kumba Iron Ore and are on track to deliver full year guidance across the rest of our products,” Mark Cutifani said.