Anglo American PLC released its Production Report for the fourth quarter ended 31 December 2023. Duncan Wanblad, Chief Executive of Anglo American, highlighted that the fourth quarter production was in line with expectations, despite deliberate slowdown at Kumba to draw down stock levels caused by poor third-party rail performance. The Quellaveco mine in Peru delivered its strongest quarter yet of 93,700 tonnes of copper, while Minas-Rio also delivered its highest ever quarterly volume of 6.6 million tonnes of premium high-grade iron ore. The deliberate prioritization of value over volume is designed to improve margins and returns.
In Q4 2023, Minas-Rio had a record quarterly performance, increasing production by 15% compared to Q4 2022. However, this was more than offset by a planned slowdown in Kumba's production to align with third-party logistics constraints, resulting in an overall decrease in iron ore production of 12%. Nickel production increased by 9%, steelmaking coal production increased by 2%, and copper production decreased by 6%. Platinum Group Metals (PGMs) operations saw a 6% lower production, and rough diamond production decreased by 3%.
The Steelmaking Coal full year 2023 unit cost of $121/t was $6/t above guidance due to lower than expected production from the higher fixed cost underground operation at Moranbah. The 2023 production was 2% higher than the prior year, reflecting the 24% increase in copper volumes primarily from Quellaveco, a strong performance from Minas-Rio, and a steady increase from the Steelmaking Coal operations. All 2024 guidance is unchanged from the December investor update.
The 2024 production guidance includes copper, nickel, platinum group metals, diamonds, iron ore, and steelmaking coal. The unit cost guidance for 2024 is also provided for each of these categories. The unit costs exclude royalties and depreciation and include direct support costs only. FX rates used for 2024F unit costs are also specified.
In summary, the report provides a comprehensive overview of the production performance for Q4 2023, highlighting the achievements and challenges across various commodities. It also outlines the company's strategic focus on value over volume, cost management, and the guidance for the year 2024.