StockMarketWire.com - Anglo American reported a 4% drop in output in the first quarter and cut its output guidance on diamond, platinum group metals and iron ore amid coronavirus-led disruption to its operations in several countries.
The company also said it would cut capex to preserve cash.
'We are also implementing a number of cash improvement measures, including operating cost reductions of at least $0.5bn and an approximately $1.0bn reduction to our 2020 capital expenditure guidance,' the company said.
Diamond production guidance was cut to 25-to-27m carats from 32-to-34m carats previously, platinum group metals guidance was cut to 1.5-to-1.7m ounces of platinum (previously 2.0-2.2m ounces) and 1.0-1.2m ounces of palladium (previously 1.4m ounces). Kumba production guidance based on the current lockdown measures in South Africa was lowered to 37-to-39m tonnes (previously 41.5-42.5m tonnes).
The lockdown measures imposed worldwide and the impact of longwall moves in the company's metallurgical coal business weighed on production in the first quarter, the company said.
Minas-Rio in Brazil continued its strong operational performance, with 6.4 million tonnes of premium grade iron ore production. Im Chile, copper production as up 16%, partly offsetting the expected impact of the ongoing water constraints at Los Bronces.
Metallurgical coal production decreased by 8% to 3.8m tonnes due to the timing of longwall moves, the company said.
Th start of a Covid-19 lockdown in South Africa had a 'limited' impact of about 2% on Q1 production; however, refined PGMs production was 'significantly' reduced by the announced convertor plant outage, it added.
Rough diamond production was flat on-year at 7.8m carats.
At 8:45am: [LON:AAL] Anglo American PLC share price was +14p at 1373.2p
Story provided by StockMarketWire.com
Shares Magazine

Shares is the leading weekly publication for retail investors. It is packed with investment ideas, news and educational material to help build and run portfolios and get more from your money.
Investor Events

Shares puts on free Investor Events throughout the year across the country. They provide an opportunity for investors to learn more about companies on the stock market and hear from a range of investment experts including fund managers and Shares journalists.