Anglo American (LON:AAL) has delivered a rise in overall output for 2017, helped by strong performance in its diamonds business. The group’s copper production, however, stagnated.
Anglo American’s share price has been steady in London in today’s session, having added 0.22 percent to 1,740.60p as of 10:28 GMT. The stock is marginally outperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.12 percent higher at 7,652.64 points. The group’s shares have added about 28 percent to their value over the past year, as compared with more than a six-percent rise in the Footsie.
Miner posts Q4 output report
Anglo American said in a statement this morning that its total production had increased five percent on a copper equivalent basis for 2017. The group’s copper equivalent production, however, dipped two percent in the last quarter of the year.
The blue-chip miner posted a five-percent rise in production from its De Beers diamonds business for the fourth quarter while for the full year, diamond output came in 22 percent higher. Copper output, however, was up only one percent in the last three months of the year.
“We have delivered another strong operating performance in 2017,” Anglo American’s chief executive Mark Cutifani commented in the statement, adding that the five-percent increase for the full year had been “achieved despite the removal of unprofitable and higher cost platinum and metallurgical coal volumes”.
Analysts weigh in on update
Reuters quoted BMO Capital Markets as saying in a note that the results were solid and it expected the company to continue focusing on incremental improvements to drive productivity.
The update comes after Morgan Stanley lifted its rating on Anglo American earlier this year, pointing to the blue-chip miner’s ‘back to basics’ strategy and arguing that its discount to peers had expanded.