Anglo American digs up solid update

Anglo American has delivered a solid production report for its third quarter, with increases across five of the seven commodities it mines.

Anglo American has delivered a solid production report for its third quarter, with increases across five of the seven commodities it mines.

For the period ending September 30th it also made some important corporate moves. These included the acquisition of a 40% shareholding in De Beers for $5.2bn cash, and the sale of a 25.4% share in Anglo American Sur for $2bn in cash.

In addition, it issued corporate bonds worth $2.3bn in US and European markets.

Exploration and evaluation operating expenditure for the nine months ended September 30th was $526m, 47% higher than the same period of 2011.

Production figures

Among the production figure highlights for the quarter were:

Iron ore - Kumba iron ore production increased by 14% to a record 12.5m tonnes (Mt), driven by faster than planned ramp up of the Kolomela mine. Kolomela is expected to produce at least 7m tonnes in 2012.

Metallurgical coal - production of metallurgical coal increased by 12% to 4.5Mt.

Thermal coal - export thermal coal production in South Africa increased by 10% to 4.6 Mt due to the ramp-up of Zibulo and the industrial action that affected operations in Q3 2011.

Copper - copper production increased by 12% to 157,300 tonnes, reflecting a full ramp up of the Los Bronces expansion project.

Nickel - nickel production increased by 38% to 9,000 tonnes, with production from Barro Alto offsetting the lack of production from Loma de Nquel in Venezuela.

Platinum - refined platinum production of 649,000 ounces was flat, while equivalent refined platinum production decreased by 6% to 626,300 ounces. Production and costs were adversely impacted by illegal industrial action which caused production loss of 42,000 ounces of equivalent refined platinum in the quarter.

Diamonds - diamond production decreased by 31% to 6.4m carats, largely in response to market conditions and the Jwaneng slope failure.

Results for the full year to December 31st will be announced on February 15th 2013.

CM

Recommended

A new legal headache for Haleon
Stocks and shares

A new legal headache for Haleon

Haleon, GSK’s former consumer-products arm, spun off last month, has made a dismal debut on the stockmarket.
17 Aug 2022
Persimmon yields 12.3%, but can you trust it to deliver?
Share tips

Persimmon yields 12.3%, but can you trust it to deliver?

With a dividend yield of 12.3%, Persimmon looks like a highly attractive prospect for income investors. But that sort of yield can also indicate compa…
17 Aug 2022
Cineworld faces a bleak future – investors should stay away
Share tips

Cineworld faces a bleak future – investors should stay away

Weighed down by crippling debts and with consumers tightening their belts, Cineworld's future does not look bright, says Rupert Hargreaves. Investors …
17 Aug 2022
Britain’s ten most-hated shares – w/e 12 August
Stocks and shares

Britain’s ten most-hated shares – w/e 12 August

Rupert Hargreaves looks at Britain's ten most-hated shares, and what short-sellers are looking at now.
16 Aug 2022

Most Popular

Don’t listen to the doom-mongers – the future is bright
Economy

Don’t listen to the doom-mongers – the future is bright

With volatile markets, raging inflation and industrial unrest, it may feel like things are bad and likely to get worse. But the end of the world is no…
15 Aug 2022
Investors should get ready for a political revolution
UK Economy

Investors should get ready for a political revolution

Liz Truss will beat Rishi Sunak, cut taxes, and then shake up the Bank of England, says Helen Thomas
15 Aug 2022
How solar panels could lower your energy bill
Energy

How solar panels could lower your energy bill

Solar-panel installation firms are reporting a four-fold increase in orders this year compared with 2021. Ruth Jackson-Kirby explains how solar can he…
14 Aug 2022