Anglo American records growth in larger divisions in Q1

Anglo American, one of the world's largest mining firms, saw production increase year-on-year across most of its asset classes in the first quarter despite scaling back spending.

Anglo American, one of the world's largest mining firms, saw production increase year-on-year across most of its asset classes in the first quarter despite scaling back spending.

Exploration and evaluation expenditure totalled $103m in the first three months of 2013, down 26% as a rise in exploration was offset by a sharp fall in evaluation spending.

Nevertheless, the company recorded annual growth in output from iron ore, metallurgical coal, thermal coal, copper, diamond and phosphates, though volumes of nickel and platinum were down.

The iron ore and manganese division, which accounted for nearly half of profits in 2012, saw decent growth in the larger iron ore unit with production up 2.0% at 10.3m tonnes (Mt) due to a strong performance at its Komela mine in South Africa. The smaller manganese operations saw ore output fall 2.0% at 0.8Mt.

The company said it is on track to deliver first ore on ship from its Minas-Rio iron ore project in Brazil by the end of next year.

Copper, its next largest division which accounts for around a quarter of profits, increased production by 1.0% year-on-year to 170,400 tonnes.

Thermal coal and metallurgical coal production rose 6.0% and 23%, respectively, while diamond and phosphates output increased 1.0% and 15%.

However, nickel volumes were down 48% due to the end of production and activities at Loma de Niquel in Venezuela in November 2012. Meanwhile, platinum equivalent output was down 2.0% partly owing to intermittent labour strikes in South Africa.

Recommended

Which assets will benefit as the “jam tomorrow” bubble pops?
Investment strategy

Which assets will benefit as the “jam tomorrow” bubble pops?

With tech stocks, cryptocurrencies and many other “long duration” investments crashing hard, the “jam tomorrow” bubble looks to be bursting. John Step…
24 Jan 2022
Three innovative Asian stocks to buy now
Share tips

Three innovative Asian stocks to buy now

Professional investor Fay Ren of the Cerno Pacific Fund highlights three of her favourite Asian stocks to buy now
24 Jan 2022
Share tips of the week – 21 January
Share tips

Share tips of the week – 21 January

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
21 Jan 2022
Seven cheap defence stocks to buy now
Share tips

Seven cheap defence stocks to buy now

We’ve got used to a world without war between major powers, but that era is coming to an end as Russia threatens Ukraine and China eyes Taiwan. Buy de…
21 Jan 2022

Most Popular

Shareholder capitalism: why we must return power to listed companies’ ultimate owners
Investment strategy

Shareholder capitalism: why we must return power to listed companies’ ultimate owners

Under our system of shareholder capitalism it's not fund managers, it‘s the individual investors – the company's ultimate owners – who should be telli…
24 Jan 2022
Three innovative Asian stocks to buy now
Share tips

Three innovative Asian stocks to buy now

Professional investor Fay Ren of the Cerno Pacific Fund highlights three of her favourite Asian stocks to buy now
24 Jan 2022
Temple Bar’s Ian Lance and Nick Purves: the essence of value investing
Investment strategy

Temple Bar’s Ian Lance and Nick Purves: the essence of value investing

Ian Lance and Nick Purves of the Temple Bar investment trust explain the essence of “value investing” – buying something for less than its intrinsic v…
14 Jan 2022