By Jaime Llinares Taboada

 

Anglo American PLC said Thursday that it has raised its cost guidance for 2022 by 9%, reflecting stronger currencies in commodity-producing countries, inflationary pressures and lower expected production volumes.

The FTSE 100 diversified mining group is facing a hit from higher diesel prices, and has raised cost guidance for all major commodity operations except diamonds.

In addition, the company downgraded 2022 production guidance for platinum group metals, iron ore and metallurgical coal.

In the first quarter, Anglo American said its platinum group metals production fell 6% to 956,000 ounces compared with a year earlier. Iron ore output dropped 19% to 13.2 million metric tons, and copper declined 13% to 140,000 metric tons.

The company also produced 8.9 million diamond carats, 9,300 tons of nickel, 2.2 million tons of metallurgical coal and 804,000 tons of manganese in the first three months of the year.

"Production in the normally slower first quarter was 10% lower than the same period in 2021, impacted by peak Covid-related absenteeism, high rainfall affecting operations in South Africa and Brazil, and safety and other operational challenges at metallurgical coal and iron ore operations," Chief Executive Mark Cutifani said.

 

Write to Jaime Llinares Taboada at jaime.llinares@wsj.com; @JaimeLlinaresT

 

(END) Dow Jones Newswires

April 21, 2022 02:35 ET (06:35 GMT)

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