Anglo American Shares Rise Despite Q4 Production Decline

PUBLISHED: 06 Feb 2025 @ 20:40 | Comments (0) | More info about Fiona Craig

Mining giant Anglo American (LSE:AAL) reported a decline in fourth-quarter production of copper and diamonds. However, the numbers still exceeded expectations, resulting in a rise in the company’s share price of over 3%.

The company produced 198,000 tons of copper in the quarter, a 14% drop from the same period last year. This is higher than the consensus estimate of 192,000 tons. The reduction was largely due to the planned shutdown of its smaller Los Bronces plant.

Diamond production also declined by 26% year on year from 7.9 million carats to 5.8 million. This was also better than analysts’ expectations of 5.3 million carats. The company said the decline was caused by lower demand together with a high inventory level, prompting a reduction in output.

For 2025, Anglo American cut its full-year diamond production guidance to a range of 20 million to 23 million carats, down from the previous forecast of 30 million to 33 million carats.

Copper production targets for 2025 and 2026 remain unchanged. The company noted that all its divisions met full-year production guidance.

The company announced “excellent” progress in streamlining its portfolio with sale of its nickel business advancing well. It reiterated that preparations continue for the separation of De Beers.

“The key focus for the market has been on copper and production came ahead of expectations, with a strong result from Los Bronces, and guidance for FY25 remains unchanged (second half weighted),” RBC Capital Markets analysts commented in a note.

“However, not much good news beyond that with weak realised pricing in both iron ore and copper,” they added.

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