By Christian Moess Laursen

Anglo American cut its diamond production guidance after a tumble in first-quarter output, which was offset by jumps in copper and coal production.

The diversified mining major said Tuesday that its rough-diamond production dropped 23% to 6.9 million carats in the quarter compared with the same period a year prior, as it jostled with too high levels of inventory amid a slow recovery in the market. Sales nearly halved to 4.9 million carats from 9.7 million carats.

While demand picked up during the quarter, the London-based miner still expects a slow recovery throughout the year as bulk buyers remain cautious due to continuing uncertainty around the economic growth outlook.

As a result, Anglo American cut its full-year guidance to 26 million-29 million carats from 29 million-32 million carats, previously, while increasing its guidance for costs per carat to $90 from $80.

Its production of platinum-group metals--another market which had a tough 2023--fell 7% to 834,000 ounces. Sales volumes were flat, but the average realized price was 30% lower.

Offsetting the drops, copper output jumped 11% to 198,000 metric tons, driven by the Quellaveco mine in Peru--one of the world's largest undeveloped copper deposits--achieving its highest throughput rate.

In Chile--where Anglo American has its remaining copper operations--production increased 6%, with output from the Collahuasi and El Soldado mines more-than offsetting a weaker quarter at Los Bronces.

Production in Chile is expected to be weighted to the first half of the year as the Los Bronces plant closes from the middle of the year. In Peru, output will be weighted to the second half of the year.

Elsewhere, steelmaking-coal production rose 7% to 3.8 million tons, while nickel and manganese declined 2% to 9,500 tons and 7% to 784,000 tons, respectively.

Overall, the quarterly output matched that of the same quarter last year. Besides for diamonds, the London-based miner backed its production outlook for across its portfolio.

Write to Christian Moess Laursen at

(END) Dow Jones Newswires

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