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