By Jaime Llinares Taboada


Anglo American PLC on Thursday reported higher copper, platinum metals and iron ore production for the first quarter compared with a year earlier, but said coal output plummeted and cut 2021 guidance for the commodity. Here's what the FTSE 100 miner had to say:


On copper:


"Copper production increased by 9% to 160,300 tonnes, due to strong operational performance at both Los Bronces and Collahuasi."


On platinum group metals:


"Platinum group metals production increased by 7%, with Mogalakwena production increasing by 17% due to higher throughput and grade."


"The average realised basket price of $2,219 per PGM ounce reflects strong prices, particularly for rhodium and the minor metals, partly offset by higher than normal sales of lower priced ruthenium."


"Sales volumes increased by 66%, driven by higher refined production, supplemented by the drawdown of minor metals from refined inventory."


"Production guidance (metal in concentrate) is unchanged at 4.2-4.6 million ounces."


On iron ore:


"Iron ore production increased by 1% to 16.2 million tonnes, driven by a 10% increase at Kumba partly offset by a 13% decrease at Minas-Rio."


"The average realised price of $170/tonne (FOB Brazil, wet basis) was higher than the Metal Bulletin 66 price of $154/tonne (FOB Brazil, adjusted for freight and moisture), reflecting product quality, including higher (67%) Fe content, and timing on provisionally priced volumes."


"Iron ore production guidance (wet basis) is unchanged at 64.5-67.5 million tonnes (Kumba 40.5-41.5 million tonnes; Minas-Rio 24-26 million tonnes), subject to the extent of further Covid-19-related disruption, as well as rail performance for Kumba."


On diamonds:


"In Botswana, production decreased by 12% to 5.0 million carats, driven by a 24% reduction at Orapa due to a lower grade feed to the plant in response to heavy rainfall and operational issues, including continued power supply disruptions."


"Demand for rough diamonds in the first quarter of 2021 recovered to pre-Covid-19 levels reflecting the replenishment of the depleted midstream, and renewed confidence by the midstream in response to the return of consumer demand for diamond jewellery in the U.S. and China in the second half of 2020."


On metallurgical coal:


"Export metallurgical coal production decreased by 14% to 3.3 million tonnes, due to the continued suspension of operations at Grosvenor following the underground gas incident in May 2020."


"Open cut operations have been scaled back at Dawson and Capcoal since mid-2020 in response to reduced demand for lower quality metallurgical coal."


"The average realised price for hard coking coal was $113/tonne, which was lower than the benchmark price of $127/tonne as sales consisted of a lower proportion of premium quality hard coking coal from Moranbah North and Grosvenor."


"Production guidance for metallurgical coal is revised to 14-16 million tonnes (previously 18-20 million tonnes), impacted by the suspension at Moranbah North as well as geotechnical conditions and delayed access to Grosvenor, subject to the extent of any Covid-19-related disruption."


On thermal coal:


"South Africa - Export thermal coal production decreased by 25% to 3.1 million tonnes as operations, which continue to operate at c.90% capacity due to Covid-19 measures to safeguard the workforce, were impacted by the second wave of Covid-19 in South Africa, as well as the Bokgoni pit at Khwezela being placed on care and maintenance."


"Colombia - Attributable export thermal coal production decreased by 9% to 1.8 million tonnes owing to a controlled Covid-19-safe ramp-up following the three month strike which ended in December 2020."


"Production guidance for export thermal coal is reduced to c.14 million tonnes (previously c.24 million tonnes) reflecting the proposed demerger of the South Africa thermal coal operations that, subject to shareholder approval, is expected on 4 June 2021 with the subsequent listing of the demerged business on 7 June 2021... subject to the extent of further Covid-19-related disruption."


Write to Jaime Llinares Taboada at; @JaimeLlinaresT


(END) Dow Jones Newswires

April 22, 2021 03:47 ET (07:47 GMT)

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