AAL

Anglo American PLC on Thursday reported broadly flat production for the third quarter as higher production from Quellaveco, steelmaking coal and De Beers was offset by lower copper ore grades in Chile and some operational challenges at the Kumba iron ore business. Here's what the FTSE 100 miner had to say:

On steelmaking coal production:

"Steelmaking coal production increased by 28% to 5.5 million tonnes, primarily due to the ramp-up of the Grosvenor longwall operation following its restart in February 2022 and the new Aquila longwall operation which began operations in February 2022."

On copper production:

"Copper production decreased by 6%, due to planned lower grades at all our operations in Chile, as well as unfavorable ore characteristics at Los Bronces, partly offset by the first production of copper from Quellaveco in Peru."

"Copper equivalent production decreased by 1% compared to 3Q 2021."

"Chile copper production decreased by 19% to 126,500 tonnes due to planned lower grades at all operations, and unfavorable ore characteristics and unplanned stoppages at Los Bronces."

"Production from Los Bronces decreased by 29% to 56,900 tonnes, primarily due to lower ore processed as a result of the impact of increased ore hardness and unplanned stoppages, as well as planned lower grades (0.58% vs 0.70%)."

"At Collahuasi, attributable production decreased by 8% to 60,400 tonnes driven by planned lower grades (1.08% vs 1.28%)."

"Production from El Soldado decreased by 21% to 9,200 tonnes due to planned lower grades (0.59% vs 0.73%)."

On platinum group metals:

"Metal in concentrate production from our Platinum Group Metals (PGMs) operations decreased by 6%, due to the impact of Eskom load-shedding (power outages) primarily in September, infrastructure closures at Amandelbult and lower grade at Mogalakwena."

"Production at Amandelbult decreased by 12% to 192,600, primarily due to infrastructure closures during 4Q 2021 as well as the impact of Eskom load-shedding."

"Mogalakwena production decreased by 6% to 259,300 ounces as a result of mining in a lower grade area."

"Joint operations decreased by 16% to 96,000 ounces due to areas of Kroondal coming to the end of life and the impact of Eskom load-shedding, as well as planned lower grade at Modikwa."

"These were partially offset by a 41% increase in production at Unki to 59,900 ounces, following the debottlenecking project at the concentrator, completed in 4Q 2021."

"Production at Mototolo increased by 9%, reflecting the benefit of higher grade."

"Purchase of concentrate was 8% lower at 362,900 ounces, due to the lower production from joint operations as well as lower third party receipts."

On iron ore:

"Iron ore production decreased by 5% primarily due to Kumba, which was impacted by the slow ramp-up after the safety intervention in the second quarter and Eskom load-shedding, primarily in September, while production at Minas-Rio was flat."

"Kumba - Total production decreased by 8% to 10.0 million tonnes, primarily driven by a decrease at Sishen of 6% to 7.1 million tonnes due to Eskom load-shedding (power outages), which had a 0.3 million tonne impact, and plant reliability. Kolomela's production decreased by 11% to 2.9 million tonnes, due to the slow ramp-up following the safety intervention in the second quarter."

"Iron ore production decreased by 5% to 16.1 million tonnes, due to an 8% decrease at Kumba, while production at Minas-Rio was flat."

On nickel:

"Nickel production decreased by 4% to 10,000 tonnes, primarily due to planned lower ore grades, partly offset by the deferral of planned annual maintenance to the fourth quarter of 2022."

"The year to date average realized price for nickel of $10.68/lb was 9% lower than the market price, primarily reflecting the ferronickel discount to LME grade nickel."

On rough diamond production:

"Rough diamond production increased by 4% to 9.6 million carats, primarily due to the treatment of higher grade ore at both Orapa (Botswana) and in South Africa, and continued strong performance in Namibia."

"In Botswana, production increased by 4% to 6.6 million carats, primarily driven by treatment of higher grade ore at Orapa, partly offset by processing lower grade ore at Jwaneng."

"Namibia production increased by 33% to 0.5 million carats, primarily driven by continued strong performance from the Benguela Gem vessel."

"South Africa production increased by 5% to 1.7 million carats, driven by the treatment of higher grade ore and the benefit of plant upgrades."

"Production in Canada decreased by 7% to 0.7 million carats, due to the treatment of lower grade ore and the impact of tight labour markets."

On guidance:

"Production guidance (metal in concentrate) for 2022 is unchanged at 3.9-4.3 million ounces."

"Refined production guidance for 2022 is unchanged at 3.7 million-3.9 million ounces, subject to the impact of Eskom load-shedding. Both are subject to the extent of further Covid-19 related disruption."

"Rough diamond production guidance for 2022 is unchanged at 32 million-34 million carats (100% basis), subject to trading conditions and the extent of further Covid-19 related disruptions."

"Copper production guidance for 2022 is unchanged at 640,000-680,000 tonnes (Chile 560,000 -580,000 tonnes; Peru 80,000-100,000 tonnes). Production is subject to the extent of further Covid-19 related disruptions and, in Peru, progress on ramp-up of operations."

"Nickel production for 2022 is expected to be towards the lower end of the guidance range of 40,000-42,000 tonnes, subject to the extent of further Covid-19 related disruptions and weather related impacts."

"Iron ore production (wet basis) for 2022 is expected to be towards the lower end of the guidance range, which is unchanged at 60 million - 64 million tonnes."

"Production for Kumba is expected to be towards the lower end of the 38-40 million tonnes guidance range."

"Production guidance for Minas-Rio is also expected to be towards the lower end of the 22-24 million tonnes guidance range."

"Both are subject to the extent of further Covid-19 related disruption and weather related impacts, and Kumba is subject to third party rail and port performance, as well as the impact of Eskom load-shedding."

"Steelmaking coal production for 2022 is expected to be towards the lower end of the guidance range of 15-17 million tonnes, subject to the extent of further unseasonal wet weather, continued tight labour markets and Covid-19 related disruptions."

Shares at 0720 GMT were down 43.50 pence, or 1.6%, at 2,727.0 pence.

Write to Ian Walker at ian.walker@wsj.com

(END) Dow Jones Newswires

October 27, 2022 03:45 ET (07:45 GMT)

Copyright (c) 2022 Dow Jones & Company, Inc.