Anglo Trims Platinum Goal as 2018 Output Contains Few Surprises

(Bloomberg) -- Anglo American Plc trimmed its platinum production forecast for 2019 as the century-old miner released its output results and goals.

• The slight cut in platinum was the only change to the 2019 guidance in Anglo’s full-year output report. It will produce 2 million to 2.1 million ounces of the metal, compared with an earlier goal of as much as 2.2 million ounces

Key Insights

• Today’s announcement contained few surprises after the company updated the market just last month with 2018 and 2019 output targets. Metallurgical coal, Kumba Iron Ore production, diamonds and nickel output last year were all at the lower end of forecast ranges.
• Anglo’s De Beers unit produced the most carats last year since the global financial crisis. Yet the higher output was driven by its new Gahcho Kue mine in Canada which produces lower quality stones, a part of the market that is under severe pressure at the moment.
• Still, while production rose, diamond sales in carats declined as the company held back some output and customers rejected some lower quality goods due to oversupply. De Beers is selling diamonds in Botswana this week in its first sale of the year.
• Copper production for the year was marginally ahead of forecast. Anglo expects to produce a similar amount again this year. Its Minas Rio iron business restarted production in December after being closed for most of the year due to a pipeline leak.

Market Reaction

• Anglo’s Johannesburg-traded shares swung between early gains and losses and were 0.1 percent higher at 7:25am London time.

Get More

• Anglo statement here

To contact the reporter on this story: Thomas Biesheuvel in London at tbiesheuvel@bloomberg.net

To contact the editors responsible for this story: Lynn Thomasson at lthomasson@bloomberg.net, Liezel Hill, John Viljoen

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