Anglo American (LSE:AAL)
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1 Month : From Oct 2019 to Nov 2019
By Oliver Griffin
Diversified mining company Anglo American PLC (AAL.LN) on Tuesday lowered its full-year copper guidance after a severe drought in Chile saw output of the red metal fall in the third quarter, and warned that production could be at risk in 2020.
The mining company said copper production in the three months ended Sept. 30 fell 8% to 158,900 metric tons due to "unprecedented drought" hitting its Los Bronces operation in Chile. As a result the company said it expects full-year production in a range of 630,000 tons to 650,000 tons. Previously the top end of Anglo American's copper guidance had been 660,000 tons.
Anglo American reported that group third-quarter production rose 4% on copper-equivalent basis, driven by continued ramp up at its Minas Rio iron-ore operation and a strong performance in metallurgical coal.
Production at Minas Rio, which started ramping up operations in December after a pipeline leak prompted a shutdown of operations last April, came in at 6.1 million tons, Anglo American said. Following the strong performance, it raised its full-year guidance to 20 million tons to 22 million tons, up from a previous range of 19 million tons to 21 million tons.
Ignoring the contribution from Minas Rio, third-quarter production fell 2%, Anglo American said.
Metallurgical coal production in the third quarter rose 22% to 6.6 million tons, the company said, while output of thermal coal fell 18% due to lower than expected production from Cerrejon in Colombia.
Production at De Beers, the company's majority-owned diamond business, fell 14% in the third quarter to 7.4 million carats due to planned reductions in output. Anglo American maintained production guidance at around 31 million carats, subject to trading conditions.
Anglo American Platinum Ltd. (AMS.JO), in which Anglo American holds a 77.3% stake, said total platinum group metal production fell 15% to 1.14 million ounces. It backed its full-year production guidance at a range of 4.2 million ounces to 4.5 million ounces.
Write to Oliver Griffin at email@example.com; @OliGGriffin
(END) Dow Jones Newswires
October 22, 2019 02:42 ET (06:42 GMT)
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