By Christian Moess Laursen


Anglo American kept its targets for key metals copper and iron ore despite production dipping for both in the second quarter. However, it lowered its coal target after a fire at a major mine in Australia suspended operations for the rest of the year. Below is what the London-listed diversified miner had to say.


On copper:


"Copper production is tracking well to plan, with the 6% decrease in the quarter to 195,700 [metric] tons, driven by an 8% decrease in Chile's production and a 4% decrease from Quellaveco in Peru."

"Copper production [in Chile] was 120,400 tons, reflecting lower throughput at Los Bronces and El Soldado, partially offset by higher throughput at Collahuasi."

"Quellaveco production decreased by 4% to 75,300 tons, due to planned lower grades, partially offset by record throughput during the quarter."

"Production guidance for 2024 is unchanged at 730,000-790,000 tons (Chile 430,000-460,000 tons; Peru 300,000-330,000 tons)."

"Unit cost guidance for 2024 is unchanged at around 157 cents a pound (Chile around 190 cents a pound; Peru around 110 cents a pound)."


On iron ore:


"Iron ore production was broadly flat at 15.6 million tons. Minas-Rio [in Brazil] achieved a record second quarter performance, with production up 1%, offset by a planned decrease at Kumba, due to the previously announced business reconfiguration to align with third-party logistics constraints."

"Production guidance for 2024 is unchanged at 58-62 million tons (Kumba 35-37 million tons; Minas-Rio 23-25 million tons)."

"Unit cost guidance for 2024 is unchanged at around $37 a ton (Kumba around $38 a ton; Minas-Rio around $35 a ton)."


On platinum-group metals:


"Total PGM production decreased by 2%, reflecting expected lower volumes from Kroondal and lower production at Mototolo, Mogalakwena and Unki. This was partially offset by higher production from Amandelbult."

"Sales volumes increased by 14% to 1.27 million ounces, higher than refined production, due to a draw down of finished goods compared to the same period of last year."

"The 1H 2024 average realized basket price of $1,442 per PGM ounce was 24% lower, mainly due to a 49% decrease in rhodium prices and a 34% decrease in palladium prices."

"Production guidance for 2024 for metal in concentrate and refined production is unchanged at 3.3 million-3.7 million ounces."

"Unit cost guidance for 2024 is unchanged at around $920 per PGM ounce."


On diamonds:


"Rough diamond production decreased by 15% to 6.4 million carats, primarily reflecting the lower production guidance announced in the first quarter production report in response to the higher than normal levels of inventory in the midstream, and the expectation for a protracted recovery in demand."

"Production guidance for 2024 is unchanged at 26 million-29 million carats; however, with higher than normal levels of inventory remaining in the midstream and an expectation for a protracted recovery, we are actively assessing options with our partners to further reduce production to manage our working capital and preserve cash."

"Unit cost guidance for 2024 is unchanged at around $90 per carat."


On steelmaking coal:


"Steelmaking coal production increased by 26% to 4.2 million tons, primarily driven by higher production at the Grosvenor underground longwall operation [in Australia]."

"Production guidance for 2024 has been updated to exclude Grosvenor in the second half of the year given the current uncertainties, resulting in guidance of 14 million-15.5 million tons (previously 15-17 million tons)."

"A planned longwall move at Moranbah is expected to take place during 4Q 2024. A walk-on/walk-off longwall move at Aquila, that will have a minimal production impact, is scheduled in 3Q 2024."

"Unit cost guidance for 2024 is consequently updated to $130-$140 per ton (previously around $115 per ton)."


On nickel and manganese:


"Nickel production was broadly flat at 10,000 tons, reflecting operational stability."

"Production guidance for 2024 is unchanged at 36,000-38,000 tons."

"Unit cost guidance for 2024 is revised lower to around 550 cents per pound (previously around 600 cents per pound), reflecting the benefit of lower input costs."

"Manganese ore production decreased by 63% to 356,000 tons, primarily due to the impact of tropical cyclone Megan in mid-March, which temporarily suspended the Australian operations."


Write to Christian Moess Laursen at christian.moess@wsj.com


(END) Dow Jones Newswires

07-18-24 0432ET