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(Alliance News) - Anglo American PLC on Thursday reported second-quarter production falls with Covid-19 lockdowns a particular pain for its De Beers and Kumba units.
The blue-chip miner added that it is "building up" from a production level of just 60% in April, amid lockdowns, to about 90% at the end of June.
The company has held most of its 2020 guidance, but did lower it for both thermal and metallurgical coal.
During the quarter to June 30, Anglo American's overall production was down 18%, with its Minas-Rio iron ore asset in Brazil and Collahuasi copper operation in Chile stopping steeper declines.
Diamond output was down 54% annually to 3.5 million carats, the largest decline by commodity. Platinum fared slightly better, output slumping 41% to 307,000 ounces. Palladium and thermal coal were both down 34% at 228,000 ounces and 4.4 million tonnes, respectively.
Metallurgical coal production dropped 32% year-on-year to 4.0 million tonnes meanwhile and manganese ore was down 4% to 796,000 tonnes.
However, a 10% production surge was seen in Anglo American's nickel operations to 108,000 tonnes and copper output climbed 5% to 167,000 tonnes.
At the Minas-Rio iron ore project in Brazil, production rose 5% to 6.2 million tonnes.
Such a performance was not seen at Kumba Iron Ore Ltd, as the Johannesburg-listed investee said output dropped 20% to 8.5 million tonnes, with sales falling 23% to 8.1 million tonnes.
Anglo American Platinum Ltd, another Johannesburg-listed investee, posted a 41% annual output fall to 665,100 ounces, hurt by lockdowns. Sales were down 57% to 548,000 ounces.
For the whole of the first half, Anglo American reported that only nickel, with a rise of 11% and Minas-Rio, showing a 17% hike, had annual output jumps.
Again, the biggest laggard was its diamond operations, with production there tumbling 27% annually in the first half.
Looking ahead, Anglo American has cut output guidance for metallurgical coal, to between 16 million and 18 million tonnes from the previous 19 million to 21 million tonnes range.
The miner has also nudged down its guidance for thermal coal to 21 million tonnes from 22 million tonnes.
It maintained its guidance for all other commodities, however.
In London, Anglo American was trading 1.6% lower at 1,923.00 pence early Thursday.
In Johannesburg, its shares lost 2.2% at ZAR401.60. Amplats was down 2.0% at ZAR1,328.00 and Kumba Iron Ore was down 2.1% at ZAR500.00.
By Eric Cunha; ericcunha@alliancenews.com
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