Anglo American reports a 3% increase in production in the first quarter

Written by: Wajeeh Khan
April 22, 2021
  • Anglo American reports a 3% increase in production in the first quarter.
  • The multinational mining company slashed its annual guidance for coal.
  • Anglo American is a little under 20% up year-to-date in the stock market.

Anglo American plc (LON: AAL) reported a 3% increase in its first-quarter production on Thursday. The company, however, slashed its annual guidance for coal (metallurgical and thermal).

Anglo American shares that you can learn to buy online here opened at £30.62 in the stock market on Thursday and are currently trading at £30.44. The miner had touched a year-to-date high of £32 per share last week. In comparison, Anglo American had started the year 2021 at a much lower £25.72 per share.

Anglo American’s copper production jumps 9%

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Anglo American said it produced 160 thousand metric tons of copper in the quarter that concluded in March, representing a 9% annualised growth. Platinum-group metals (PGMs) production, on the other hand, jumped 7% in Q1 to 1.02 million ounces. At 16.2 million tons, iron-ore output, as per the mining firm, was 1% up.

For 2021 as a whole, the Johannesburg-headquartered company forecast an increase in iron-ore, PGMs, and copper production. Anglo American bought Sirius Minerals last year for £405 million in cash.

According to Anglo American, diamond output in the first quarter stood at 7.2 million carats, or 7% lower than last year. Metallurgical coal output, the London-listed firm added, tanked 14% in Q1 to 3.3. million tons, while thermal coal output slid to 4.9 million tons – a broader 20% decline.

Anglo American produced 10,100 tons of Nickel or 7% lower than the comparable quarter of last year. 905 thousand tons of manganese ore output in the first quarter was 7% higher on a year over year basis.

In separate news from the United Kingdom, Informa plc said it swung to a loss in 2020 due to the COVID-19 restrictions.

Anglo American’s coal guidance for the full year

Anglo American now forecasts up to 16 million tons of metallurgical coal production this year. It slashed its full-year thermal guidance to 14 million tons. CEO Mark Cutifani said on Thursday:

“Anglo American’s portfolio is increasingly tilted towards future-enabling metals and minerals, with our recently proposed demerger of our thermal coal operations in South Africa moving us further in that direction.”

Anglo American performed fairly upbeat in the stock market last year with an annual gain of more than 10%. At the time of writing, the world’s largest producer of platinum is valued at £41.54 billion and has a price to earnings ratio of 25.45.