Anglo American rises on first quarter production beat

24th Apr 2014 07:20

- Kumba iron ore production up 10 per cent- Metallurgical coal up 31 per cent- Nickel up 48 per cent- Platinum down 39 per cent after miner strikes- Copper up 18 per cent- Diamonds up 18 per centFTSE 100 diversified miner Anglo American impressed with production increases well ahead of expectations. Kumba iron ore was up 10% to 11.3m tonnes (mt), following solid performances at both Sishen and Kolomela mines and thanks to easier comparisons as the equivalent period in 2013 was impacted by lower than planned production at Sishen following a strike.Due to ongoing industrial action at its Rustenburg, Amandelbult and Union mines in South Africa, platinum production guidance has been revised downwards to approximately 2.1m ounces from 2.3m-2.4m ounces previously. During the quarter, refined platinum production decreased by 39% in the quarter to 357,000 ounces as a result of the strikes.Export metallurgical coal output increased by 31% to 6.1 mt, a record quarter, primarily as a result of continuing productivity improvements at its underground operations, with long-wall cutting hours at Grasstree and Moranbah in Canada respectively improving by 63% and 33%. Thermal coal production was up 14%, as production from South Africa increased by 6% to 4.1 mt and in Columbia's Cerrejón was up 95% versus a strike-affected period in 2013. Copper production increased by 18% to 202,000 tonnes, with improved performance from Chile's Los Bronces and Collahuasi mines, mainly thanks to higher ore grades. Copper production guidance for full year 2014 has been revised upwards by 10,000 tonnes to between 710,000 and 730,000 tonnes. Nickel production increased by 48% to 9,200 tonnes driven by improved operational stability at Barro Alto in Brazil. In base metals and minerals, niobium production was flat at 1,100 tonnes as higher recoveries were offset by lower ore grade, while phosphates concentrate production was flat at 347,900 tonnes and fertiliser production decreased by 2% due to unplanned maintenance stoppage and throughput constraints. Diamond production increased by 18% to 7.5m carats, largely due to the impact of planned plant maintenance at South Africa's Orapa in Q1 2013 and recovery from the 2012 sidewall failure at Jwaneng in Botswana.Shares in Anglo were up 2.59% to 1,587p at 08:10 on Thursday.OH