Anglo American PLC released its Production Report for the second quarter ended 30 June 2024. Duncan Wanblad, Chief Executive of Anglo American, highlighted the company's strong performance, particularly the record second quarter production at Minas-Rio and the positive performance of its copper operations in Chile and Peru. However, De Beers' diamond production was affected by subdued Chinese consumer demand, leading to the company actively assessing options to reduce production and manage working capital.
The Grosvenor mine experienced an underground fire at the end of June, resulting in its suspension and exclusion from the Steelmaking Coal guidance for the second half of the year. This incident impacted the company's overall production. In May, Anglo American announced plans to accelerate its strategy by simplifying the portfolio and focusing on world-class assets in copper, premium iron ore, and crop nutrients. The company aims to complete this transformation by the end of 2025.
In Q2 2024, copper production tracked well to the full-year plan, with a 2% increase compared to the first half of 2023. Minas-Rio achieved a record second quarter performance, while platinum group metals (PGMs) operations saw a 2% decrease in production. Steelmaking coal production increased by 26%, driven by higher production from the Grosvenor underground mine. However, rough diamond production decreased by 15%, and manganese ore production also saw a significant decrease.
The company provided production and unit cost guidance for 2024 across its key commodities, including copper, iron ore, platinum group metals, diamonds, steelmaking coal, and nickel. The guidance reflects the company's focus on operational excellence and strategic priorities.
Overall, the report indicates a mixed performance across Anglo American's key commodities, with strong performances in copper and steelmaking coal, offset by challenges in diamond production and the impact of the Grosvenor mine incident. The company's strategic focus on operational excellence and portfolio simplification remains a key priority as it aims to optimize value for shareholders and achieve sustainable cost savings.