Anglo American's shares rose Monday as the miner reported it would produce three per cent more copper this year than the last.
The revised forecast was driven in part as the troubled Collahuasi mine turns around after a tough 2012. Operational difficulties, labour unrest and a harsh Andean climate has impacted the copper mine. Last year its output fell to 282,100 tonnes from 453,300 tonnes in 2011.
However, the company said a mill change on March 20th could help boost production by May.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
"Our expectation for this year's output is 680,000 tonnes of copper for Anglo American," Copper Chief Executive Officer, John MacKenzie, told Reuters.
"At the end of the year we're going to reach a rhythm of 400,000 tons."
It is part of the company's expansion plans to increase annual production to between 800,000 tons and 1,000,000 tonnes which is expected to be achieved once the mine stabilises.
Meanwhile, copper prices are set to advance further Tuesday as Chilean miners strike for 24 hours at Codelco, Anglo and BHP mines, according to Investec.
RD
-
SIPP holders to get cash warnings and be offered default fundsNews Providers will be required to offer investors a default fund and must warn customers of the inflationary risk of cash savings the regulator has said. What the new rules mean for your retirement pot?
-
Zoopla: Asking price discounts hit a five-year high – is now the time to buy a property?
News Zoopla’s October House Price Index shows sellers are accepting discounts of 5.5% on average to secure a sale – we reveal where homeowners are taking the biggest asking price cuts
