Anglo American 2Q Production Boosted by Quellaveco Mine in Peru-- Commodity Comment
July 20 2023 - 3:15AM
Dow Jones News
Anglo American said Thursday that production for the second
quarter of the year rose 11% compared with the comparable period a
year earlier, reflecting the ramp-up of the new Quellaveco copper
mine in Peru. Here's what the multinational mining company had to
say:
On copper production:
"Copper production increased by 56% to 209,100 metric tons, due
to the ramp-up of production from our new Quellaveco mine in Peru,
while Chile's production decreased by 2%. Production from our
operations in Chile decreased by 2%."
On copper guidance:
"Production guidance for 2023 is unchanged at 840,000-930,000
tons (Chile 530,000-580,000 tons; Peru 310,000-350,000 tons).
Production in Chile is subject to water availability."
"Unit cost guidance for 2023 is revised to c.166 c/lb
(previously c.156 c/lb) (Chile c.205 c/lb (previously c.190 c/lb),
reflecting the stronger Chilean peso; Peru c.100 c/lb)."
On steelmaking coal production:
"Steelmaking coal production increased by 28% to 3.4 million
tons, as the open cut operations (Capcoal and Dawson) were impacted
by unseasonal wet weather in 2022."
On steelmaking guidance:
"Production guidance for 2023 is unchanged at 16-19 million
tons."
"Unit cost guidance for 2023 is unchanged at c.$105/ton."
On iron ore production:
"Iron ore production increased by 9% to 15.6 million tons,
reflecting a 29% increase at Minas-Rio and a 2% decrease at
Kumba."
On iron ore guidance:
"Production guidance for 2023 is unchanged at 57-61 million tons
(Kumba 35-37 million tons; Minas-Rio 22-24 million tons). Kumba is
subject to third-party rail and port performance."
"Unit cost guidance for 2023 is c.$39/ton, revising Kumba to
c.$43/ton (previously c.$44/ton) reflecting the weaker South
African rand and Minas-Rio to c.$33/ton (previously c.$32/tonne)
reflecting the stronger Brazilian real."
On nickel production:
"Nickel production decreased by 4% to 9,900 tons, reflecting the
impact of lower grades, despite operational improvements at
Codemin."
On nickel guidance:
"Production guidance for 2023 is unchanged at 38,000-40,000
tons."
"Unit cost guidance for 2023 is revised to c.560 c/lb
(previously c.515 c/lb), reflecting the stronger Brazilian real and
impact of higher costs of production due to lower grade ore."
On rough diamond production:
"Rough diamond production decreased by 5% to 7.6 million carats,
due to the planned reduction in South Africa while the Venetia open
pit transitions to underground operations, which offset strong
performance driven by the planned treatment of higher grade ore at
the remaining assets."
On rough diamond guidance:
"Production guidance for 2023 is unchanged at 30-33 million
carats (100% basis), subject to trading conditions."
"Unit cost guidance for 2023 is revised to c.$75/carat
(previously c.$80/carat), reflecting the weaker South African
rand."
On platinum group metals:
"Production from our platinum group metals (PGMs) operations
decreased by 9%, mainly driven by short-term operational challenges
and 2022 planned infrastructure closures at Amandelbult, as well as
the planned ramp-down of Kroondal."
On PGM guidance:
"Production guidance (metal in concentrate) for 2023 is
unchanged at 3.6-4.0 million ounces. Refined production guidance
for 2023 is 3.6-4.0 million ounces, subject to the impact of Eskom
load-curtailment."
"Unit cost guidance for 2023 is revised to c.$1,000/PGM ounce
(previously c.$1,025/PGM ounce), reflecting the weaker South
African rand."
Write to Ian Walker at ian.walker@wsj.com
(END) Dow Jones Newswires
July 20, 2023 04:00 ET (08:00 GMT)
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