Anglo American share price: Targeting 25% rise in Peruvian copper project output

on Jan 3, 2014
Updated: Jun 1, 2022

Are you looking for signals & alerts from pro-traders? Sign-up to Invezz Signals™ for FREE. Takes 2 mins., Friday, January 3: Anglo American (LON:AAL) is aiming to increase the annual production potential at its majority-owned Quellaveco copper project in southern Peru by about a quarter, the global mining giant company has said.

The company is working on a new mine plan that is expected to boost copper output to 281,000 tonnes per year at Quellaveco, one of the biggest copper projects in Peru, an Anglo American official said last month. The company had previously said that Quellaveco would produce 225,000 tonnes of copper a year during the mine’s lifespan of over 30 years. In September, Anglo American and Southern Copper (NYSE:SCCO) were reported to be considering teaming up to develop the $3.3 billion Quellaveco project (Mining roundup: Rio’s Oyu Tolgoi faces Chinese customs delay).

Anglo American’s share price was 0.46 percent lower at 1,286p as of 8:13 UTC today, valuing the company at £17.94 billion.
The Anglo American official said the company has identified a greater resource potential at Quellaveco. A new feasibility study for the project, in which Anglo American owns a 81.9 percent stake, is expected to be completed over the next 18 months, at which time the project will be presented to Anglo American’s board of directors for approval. “Only at that point would we have a clear view on the capex required to develop the project,” the official said, as quoted by the Wall Street Journal.

**Anglo American to invest $100 million in Zimbabwean platinum operation in 2014**
Anglo American, which so far has invested $350 million (£213 million) in its Zimbabwean unit, Unki Platinum Mine, plans to invest a further $100 million (£60.8 million) this year as it consolidates operations and aims to maintain the current production levels at the mine for the immediate future.

“The first phase of this development consists of a mine, concentrator and housing at a total cost of $450 million,” Unki Mine chief operating officer Colin Chibafa said last month.

“The mine and concentrator, developed at a cost of $350 million, have been operational since 2011, processing 120,000 tonnes of ore per month. The remaining component of the project relates to the construction of approximately 1,000 houses and related infrastructure to cater for employees at a total cost of $100 million which will be completed during 2014,” Chibafa said, as quoted by
The life-of-mine of the current operations at Unki extends to 2041, although projects in study could prolong the lifespan of the mine beyond 2055.
**Analysts on Anglo American**
Equity analysts at HSBC cut their target price on shares in Anglo American to 1,570p from 1,655p in a research note issued to investors on December 14, American Banking has reported. HSBC currently has a “neutral” rating on the stock.
Analysts at Jefferies Group maintained a “hold” rating on Anglo American’s stock with a price objective of 1,650p in a research note to investors on December 14. On the same day, analysts at Deutsche Bank downgraded Anglo American to a “hold” rating and cut their target price on the miner’s stock to 1,500p from 1,780p.
**As of 8:01 UTC buy Anglo American shares at 1,289p.**
**As of 8:01 UTC sell Anglo American shares at 1,288p.**
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