Anglo American share price: Miner posts Q2 production report
Anglo American (LON:AAL) has posted its second-quarter production report this morning.
**Highlights from the company statement:**
Mark Cutifani, Anglo American Chief Executive, said “The Q2 2016 operating results are in line with the equivalent period of 2015 on a copper equivalent basis(8). We are building upon the improving operational trend from the first quarter as we recover refined platinum production and continue to ramp-up Minas-Rio, Grosvenor and Barro Alto. We also continue to demonstrate discipline in our key markets, particularly diamonds and platinum, in line with our focus on higher margin and lower cost assets. The decisive actions taken by De Beers last year led to more normal trading conditions in the first half of 2016 with sales volumes increasing as a result, but we maintain a cautious outlook.”
· Diamond production decreased by 19% to 6.4 million carats, reflecting the decision to reduce production in response to prevailing trading conditions in H2 2015.
· Platinum production (expressed as metal in concentrate)(2) increased by 1% to 585,700 ounces, whilst refined platinum production increased by 33% to 747,600 ounces, reflecting the recovery at the Precious Metals Refinery after a planned stocktake and safety stoppage in Q1 2016.
· Copper production from the retained operations (excluding the AA Norte assets sold effective 1 September 2015) decreased by 8% to 144,200 tonnes. Expected lower grades and significant snowfall impacted operations at Los Bronces, albeit partly offset by plant stability improvements at Collahuasi.
· Nickel production increased by 76% to 11,100 tonnes following the successful completion of the Barro Alto furnace rebuilds in 2015.
· Iron ore production from Kumba decreased by 15% to 8.9 million tonnes as Sishen restructured (downsized) and transitioned the operations to a lower cost pit configuration.
· Iron ore production from Minas-Rio increased by 91% to 3.5 million tonnes (wet basis) as the operation continues its ramp-up.
· Export metallurgical coal production increased by 4% to 5.5 million tonnes due to first longwall production at Grosvenor in May and a longwall move at Grasstree in the prior year, partially offset by ramp-up at Moranbah after the completion of the longwall move in the prior quarter.
· Export thermal coal production decreased by 6% to 8.1 million tonnes due to ramping down production at Drayton where mining activities will cease in late 2016 and planned production cuts at Cerrejón, partly offset by higher production at most South African Export operations.
As of 07:49 BST, Wednesday, 20 July, Anglo American plc share price is 813.60p.
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