Anglo American: Mixed results in the Last Quarter

Share On Facebook
share on Linkedin
Print

Anglo American (LSE:AAL), one of the world’s largest mining companies, today said its production of iron ore and copper shot up in the fourth quarter of 2011.   However, the company said its’ diamond and platinum production lowered during the same period.

How the metals performed

The globally diversified miner reported a 5% increase in iron ore production on the year to 12.4 million metric tons during the fourth quarter.

The production of copper increased by an impressive 10% on the year to 170,000 tons during the same period last year.

Iron ore contributed to about 42% of the company’s first-half operating profit before special items, whilst the copper division contributed to about 24% of the company’s first-half operating profit before special items.

Though the miner’s output of diamond and platinum decreased in the three months ending Dec. 31, as platinum production shot down by 9% to 583,200 ounces while diamond production shot down by 24% to 6.5 million carats.

Platinum and diamonds accounted to 9% and 8% respectively of the company’s first-half operating profit before special items.

Reasons for the performance

Anglo American, just like competitors BHP Billiton Ltd and Rio Tinto Group, has been carrying out expansion of its’ mines and studying acquisitions with the intention of increasing its’ production with increasing demand in various part of the world.

Anglo said that in 2011 it might spend up to $85 billion to increase its output at about one hundred projects over the decade.

As with the previous year, the company completed three major projects. In November, it finished the expansion of its Chilean Los Bronces copper mine. And, in December, it commenced working on its new million-ton-a-year South African Kolomela iron ore mine.

They also finished its Brazilian Barro Alto nickel project in March and is now working to finish their Brazilian Minas Rio iron ore project in the second half of 2013.

On the other hand, the company’s production of platinum declined largely because of a greater number of safety stoppages leading to decreased mine production and increased processing of lower grade surface stockpiles.

Company spotlight

Anglo American is one of the world’s largest mining companies. The company has extensive mining operations that span southern Africa, South America, Australia, North America, Asia, and Europe.

References
 Mineweb News↑ Bloomberg Businessweek
 Company overview

CLICK HERE TO REGISTER FOR FREE ON ADVFN, the world's leading stocks and shares information website, provides the private investor with all the latest high-tech trading tools and includes live price data streaming, stock quotes and the option to access 'Level 2' data on all of the world's key exchanges (LSE, NYSE, NASDAQ, Euronext etc).

This area of the ADVFN.com site is for independent financial commentary. These blogs are provided by independent authors via a common carrier platform and do not represent the opinions of ADVFN Plc. ADVFN Plc does not monitor, approve, endorse or exert editorial control over these articles and does not therefore accept responsibility for or make any warranties in connection with or recommend that you or any third party rely on such information. The information available at ADVFN.com is for your general information and use and is not intended to address your particular requirements. In particular, the information does not constitute any form of advice or recommendation by ADVFN.COM and is not intended to be relied upon by users in making (or refraining from making) any investment decisions. Authors may or may not have positions in stocks that they are discussing but it should be considered very likely that their opinions are aligned with their trading and that they hold positions in companies, forex, commodities and other instruments they discuss.

Leave A Reply

 
Do you want to write for our Newspaper? Get in touch: newspaper@advfn.com

By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions

P: V: D:20210922 23:05:32