Anglo American PLC has released its Production Report for the first quarter ended 31 March 2024. Duncan Wanblad, Chief Executive of Anglo American, expressed satisfaction with the first-quarter performance, highlighting an 11% increase in copper production, driven by higher throughput at Quellaveco and improved grades at Collahuasi and El Soldado in Chile. Steelmaking coal production also saw a 7% increase, attributed to the performance at the Aquila longwall and Capcoal open cut operations. However, De Beers implemented changes to lower its diamond production by approximately 3 million carats, resulting in flat production overall for the Group compared to the same period last year.
The company is focused on driving operational excellence across its assets, with a specific emphasis on stability and effective cost management to deliver significant value through the cycle. Anglo American is also progressing through its asset review to optimize value by simplifying and improving the overall quality of the portfolio. With copper now representing 30% of the total production, the company is strategically positioning itself to deliver and grow into major demand themes.
In Q1 2024, copper production increased by 11%, steelmaking coal production by 7%, and iron ore production remained flat. However, rough diamond production decreased by 23%, primarily due to changes implemented to lower production in response to market inventory levels. The company has revised its full-year 2024 production guidance for diamonds to 26-29 million carats, with unit costs adjusted to approximately $90/carat.
The production and unit cost guidance for 2024 have been summarized as follows:
- Copper: 730-790 kt with unit cost of c.157 c/lb
- Nickel: 36-38 kt with unit cost of c.600 c/lb
- Platinum Group Metals: 3.3-3.7 Moz with unit cost of c.$920/oz
- Diamonds: 26-29 Mct with unit cost of c.$90/ct
- Iron Ore: 58-62 Mt with unit cost of c.$37/t
- Steelmaking Coal: 15-17 Mt with unit cost of c.$115/t
The unit costs exclude royalties and depreciation and include direct support costs only. The company is also considering FX rates for 2024F unit costs, such as c.850 CLP:USD, c.3.7 PEN:USD, c.5.0 BRL:USD, c.19 ZAR:USD, and c.1.5 AUD:USD.
In conclusion, Anglo American PLC's Q1 2024 Production Report reflects a mixed performance across its key products, with a strong focus on operational excellence and cost management to drive value through the cycle. The company has made strategic adjustments in response to market conditions, particularly in diamond production, and is well-positioned to capitalize on the growing demand for copper over the medium-term.