Anglo American shares rise on revised copper output estimate
Anglo American's shares rose Monday as the miner reported it would produce three per cent more copper this year than the last.
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
Sign up to Money Morning
Our team, led by award winning editors, is dedicated to delivering you the top news, analysis, and guides to help you manage your money, grow your investments and build wealth.
-
8 of the best houses for sale with libraries
This week: the best houses for sale with libraries – from a five-storey Georgian townhouse in Bloomsbury, London, to a 15th-century property with a library in a medieval tower in Lozère, France
By Natasha Langan Published
-
Investors pull money from UK equities as government warns of “painful” Budget
The government’s post-election honeymoon period has been short-lived, and investors are shying away from UK equities as a result
By Katie Williams Published