LONDON, April 23 (Reuters) - Anglo American on Tuesday reported an 11% increase in its copper output for the first quarter of the year, but slashed its 2024 production guidance for diamonds.
The London-listed miner said its copper production rose to 198,100 metric tons in the first three months, buoyed by a ramp-up in production at Quellaveco in Peru.
Still, the miner said it would maintain its 2024 output guidance for the metal at 730,000-790,000 tons.
Demand for copper, used in applications from solar panels to electric cars, is expected to increase as the world moves towards cleaner energy sources.
But global economic weakness has lowered the demand outlook for diamonds, traditionally seen as luxury items.
Anglo's shares had slipped 0.7% by 0712 GMT.
Production of rough diamonds via De Beers fell 23% to 6.9 million carats.
Anglo, which in February announced a $1.6 billion impairment charge at its diamond operations, lowered its yearly guidance to 26 million to 29 million carats from a previous forecast of 29 million to 32 million carats on high levels of inventory.
"Although the diamond volumes cut and increase in cost guidance is a negative, we do not expect a material revision to consensus numbers," said analysts at RBC Capital Markets.
"The volumes cut could likely assist diamond prices helping partially offset the higher costs," they added.
Output of platinum metals and iron ore at Anglo's South African units was broadly flat during the quarter. Shipments from Kumba Iron Ore were impacted by logistical challenges, the company said, as rail bottlenecks continue.
A consultation process to cut about
3,700 jobs
at Anglo Platinum as part of a restructuring after a slump in prices, are well advanced, Anglo said.
(Reporting by Clara Denina and Felix Njini; Editing by Kirsten Donovan)
Anglo American (AAL)
