(Alliance News) - Anglo American PLC said on Tuesday it was "pleased" with its production performance in the first three months of 2024, largely maintaining full-year guidance but cutting its output target for diamond operations.
The London-based mining company said copper production rose 11% to 198,000 tonnes for the first quarter of 2024, compared to 178,000 tonnes in the corresponding period a year before. But output dropped 14% from 229,900 tonnes in the fourth quarter of 2024.
For the first three months, nickel production was down 2% to 9,500 tonnes on-year, from 9,700 tonnes. On a quarterly basis, however, production declined 14% from 11,100 tonnes.
Diamond production in the first quarter of 6.9 million carats, down 23% annually from 8.9 million carats, while output fell 13% from 7.9 million carats in the fourth quarter.
Anglo American trimmed its diamond output guidance to a range of 26 million to 29 million carats, from 29 million to 32 million previously.
Steelmaking coal production rose 7% to 3.8 million tonnes on-year in the first-quarter, from 3.5 million tonnes, but output slumped 21% from 4.8 million tonnes in the fourth quarter.
Manganese ore fell 7% to 784,000 tonnes on an annual basis from 841,000 tonnes, and was down 7.5% from 848,000 tonnes in the last three months of 2023.
In a separate filing, Anglo American Platinum Ltd, a subsidiary of Anglo American, said platinum group metals production fell 7.4% to 834,100 ounces for the first quarter from 901,200 ounces in the first three months last year. Output declined 11% from 932,2000 ounces in the fourth quarter of 2023.
Anglo American Platinum maintained 2024 guidance at between 3.3 million ounces and 3.7 million ounces, compared to 3.8 million ounces in 2023.
Anglo American said iron ore production, including the contribution from its unit Kumba Iron Ore Ltd, was flat at 15.1 million tonnes on an annual basis in the first quarter. But iron ore output rose 9.4% from 13.8 million tonnes in the fourth quarter.
For 2024, Anglo American kept its production estimate at between 58 million tonnes and 62 million tonnes, compared to 59.9 million tonnes in 2023.
Kumba warned in a separate filing its outlook for 2024 is subject to third-party rail and port availability and performance in South Africa. In expects total production to range between 35 million tonnes and 37 million tonnes, from 35.7 million tonnes the previous year.
Commenting on the first quarter results, Anglo American Chief Executive Officer Duncan Wanblad said the company was "pleased" with the performance in the first three months.
"We are driving operational excellence across our assets, focusing on stability and effective cost management as levers to deliver significant value through the cycle," Wanblad said.
"We are progressing through our asset review to optimise value by simplifying and improving the overall quality of the portfolio. With copper now representing 30% of our total production, and having the benefit of several well-sequenced and value-accretive copper growth options within our portfolio over the medium-term, we are also setting up the business to deliver and grow into the major demand themes," he said.
Shares in Anglo American fell 3.2% to 2,092.00 pence each in London early Tuesday. In Johannesburg, they were down 1.8% to ZAR497.09.
Anglo American Platinum shares fell 3.7% at ZAR703.92. Kumba shares shed 5.0% at ZAR437.24.
By Artwell Dlamini, Alliance News reporter
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