Anglo American reports mixed Q3 update, but iron ore output jumps

Mining group Anglo American reported falling output of some commodities in the third quarter but delivered a big increase in production of iron ore, its largest division.

The company produced 13m tonnes of iron ore in the three months to 30 September, up 37% on last year, following the implementation of the production recovery plan at Sishen and record output at Kolomela.

Anglo also narrowed its guidance for the full year and now expects to mine 45m-46m tonnes of iron ore over 2014, compared with its previous 44m-46m forecast.

The iron ore and manganese division accounted for over 40% of first-half underlying operating profits. Manganese ore and alloy production rose 10% and 25% year-on-year respectively in the third quarter.

However, copper production dropped by 15% to 176,900 tonnes with grade declines at Los Bronces and Collahuasi being partially offset by improved throughput at Los Bronces. Nevertheless, Anglo lifted its full-year guidance slightly to 730,000-745,000 tonnes, up from the intial forecast of 725,000-740,000 tonnes.

Platinum output fell by 14% to 532,800 ounces as the company continues to be affected by strikes in South Africa. While normal production resumed in September, Anglo has now cut its full-year guidance to 1.75m-1.8m ounces, from 2m-2.1m ounces.

Diamond production fell 4% to 8.19m carats, but full-year guidance was increased slightly to around 32m carats, from 31m-32m carats.

Export metallurgical coal output rose 4%, but export thermal coal fell 4%. Nickel volumes increased by 13%.