Anglo American PLC has reported a 9% rise in production for the first quarter of the year compared with the same period in 2022, driven by the ramp-up of copper production from the new Quellaveco mine in Peru. Here's what the FTSE 100-listed diversified mining group had to say:


On copper:


"Copper production increased by 28%, reflecting the ramp-up of production from our new Quellaveco copper mine in Peru, while production from our operations in Chile decreased by 15%, primarily due to planned lower grades at both Los Bronces and Collahuasi."


"Production guidance for 2023 is unchanged at 840,000-930,000 metric tons (Chile 530,000-580,000 tons; Peru 310,000-350,000 tons). Production in Chile is subject to water availability and in Peru is subject to completion of ramp-up, expected around mid-2023."


"Unit cost guidance for 2023 is unchanged at c.156 c/lb (Chile c.190 c/lb; Peru c.100 c/lb)."


On steelmaking coal:


"Steelmaking coal production increased by 59% to 3.5 million tons, as all three longwalls (Grosvenor, Moranbah and Aquila) were operational during the quarter, reflecting the benefit of the Grosvenor restart and the Aquila mine commissioning, which both occurred in February 2022, and the longwall move at Moranbah in 1Q 2022."

"Grosvenor continued to improve longwall performance throughout the quarter, while Moranbah is safely navigating through challenging strata conditions, which we expect to improve by the middle of the second quarter."


"The 1Q average realized price for hard coking coal was $301/ton, lower than the benchmark price of $344/ton. However, the price realization increased to 88% (1Q 2022: 76%) driven by larger volumes of premium hard coking coal being produced from the underground longwall operations and the impact of sales timing in 1Q 2022."


"Production guidance for 2023 is unchanged at 16-19 million tons."


"Unit cost guidance for 2023 is unchanged at c.$105/ton."


On Iron ore:


"Iron ore production increased by 15% to 15.1 million tons, reflecting a 16% increase at Minas-Rio and a 14% increase at Kumba."


"Kumba - total production increased to 9.4 million tons, primarily driven by a 25% increase at Kolomela to 3.1 million tons as well as a 9% increase at Sishen to 6.3 million tons, reflecting improved operational performance due to improved rain readiness capability and equipment reliability, as well as the benefit of lower rainfall this quarter."


"Total sales increased 2% to 9.5 million tons but, due to ongoing weak logistics performance from Transnet as the third party rail and port operator, continues to be constrained by low levels of finished stock at the port. As a result, total finished stock increased to 8.0 million tons (1Q 2022: 5.1 million tons)."


"Kumba's iron (Fe) content averaged 63.1% (1Q 2022: 64.0%), while the average lump:fines ratio was 67:33 (1Q 2022: 65:35)."


The 1Q average realized price of $121/ton (FOB South Africa, wet basis) was 10% higher than the 62% Fe benchmark price of $110/ton (FOB South Africa, adjusted for freight and moisture), reflecting the lump and Fe content quality premiums that the Kumba products attract, as well as the benefit of provisionally priced sales volumes."


"Minas-Rio - production increased by 16% to 5.7 million tons, driven by improved mining performance, reflecting improved rain readiness capability as well as increased plant performance due to improvements at the crushing circuit."


"The 1Q average realized price of $125/ton (FOB Brazil, wet basis) was higher than the Metal Bulletin 65 price of $109/ton (FOB Brazil, adjusted for freight and moisture), which takes into account the premium for our high quality product, including higher (67%) Fe content, as well as the benefit of provisionally priced sales volumes."


"Production guidance (wet basis) for 2023 is unchanged at 57-61 million tons (Kumba 35-37 million tons; Minas-Rio 22-24 million tons). Kumba is subject to third party rail and port performance."


"Init cost guidance (wet basis) for 2023 is unchanged at c.$39/ton (Kumba c.$44/ton; Minas-Rio c.$32/ton)."


On nickel:


"Nickel production increased by 4% to 9,700 tons, reflecting improved operational performance at Codemin and higher metal recovery at Barro Alto, offsetting planned lower grades."


"Production guidance for 2023 is unchanged at 38,000-40,000 tons."


"Unit cost guidance for 2023 is unchanged at c.515 c/lb."


On rough diamond production:


"Rough diamond production was flat, as planned higher grade ore and strong operational performance across most of the assets was offset by the planned completion of Venetia's open pit in December 2022, as it transitions to underground operations during 2023."


On metal in concentrate production:


"Own mined production decreased by 6% to 586,000 ounces, primarily due to lower production from Mogalakwena and Amandelbult, partially offset by a strong production performance from Unki."


"Mogalakwena production decreased by 12% to 219,000 ounces as a result of unplanned plant maintenance and mining in a lower grade area."


"Production at Amandelbult decreased by 5% to 151,500 ounces, primarily due to planned infrastructure closures and the closure of the Merensky Concentrator in 4Q 2022."


On De Beers:


"Rough diamond production was flat at 8.9 million carats, as the planned treatment of higher grade ore and strong operational performance across most of the assets was offset by the planned end of operations in Venetia's open pit in December 2022 as the mine transitions to underground operations during 2023."


"In Botswana, production increased by 12% to 6.9 million carats, primarily driven by the planned treatment of higher grade ore and continued strong plant performance at Orapa."


"Namibia production increased by 37% to 0.6 million carats, primarily driven by the contribution from the Benguela Gem vessel, which commenced production in March 2022."


"South Africa production decreased by 56% to 0.7 million carats, due to the planned completion of the Venetia open pit in December 2022. Venetia continues to process lower grade surface stockpiles, which will result in temporary lower production levels as it transitions to underground operations."


"Production in Canada increased by 11% to 0.7 million carats, despite unplanned maintenance challenges."


"Sales were in line with expectations given that Sightholders have taken a more cautious approach in planning their 2023 allocation schedule in light of the current uncertain macroeconomic outlook, with a greater weighting of goods expected to be purchased as the year progresses."

"Rough diamond sales totaled 9.7 million carats (8.9 million carats on a consolidated basis) from three Sights, compared with 7.9 million carats (7.0 million carats on a consolidated basis) from two Sights in 1Q 2022, and 7.3 million carats (6.6 million carats on a consolidated basis) from two Sights in 4Q 2022."


"Production guidance for 2023 is unchanged at 30-33 million carats (100% basis), subject to trading conditions."


"Unit cost guidance for 2023 is unchanged at c.$80/ct."


On refined:


"Refined production decreased by 13% to 626,000 ounces, primarily due to the ramp-up of the Polokwane smelter at the end of January 2023 following its rebuild, and asset integrity work at Waterval smelter as well as the impact of Eskom load-curtailment (reductions in electricity availability)."


"Sales volumes decreased by 17% in line with lower refined production."


"The average realized basket price was $2,131/PGM ounce, reflecting lower market prices compared to 1Q 2022."


"Production guidance (metal in concentrate) for 2023 is unchanged at 3.6-4.0 million ounces. Refined production guidance for 2023 is 3.6-4.0 million ounces, subject to the impact of Eskom load-curtailment."


"Unit cost guidance for 2023 is unchanged at c.$1,025/PGM ounce."


On Manganese ore production:


"Manganese ore production increased by 5% to 840,900 tons, primarily reflecting the impact of the planned maintenance at the South African operation in 1Q 2022."


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


(END) Dow Jones Newswires

04-25-23 0320ET