Anglo American PLC on Tuesday reported a mixed production performance for the third quarter of 2023 as strong copper output growth in Chile was contrasted by challenges arising from maintenance, low grades and mining challenges at other operations.

The firm downwardly revised its copper output guidance, however.

Anglo American Chief Executive Duncan Wanblad said production in the third quarter overall was consistent with the same period in 2022.

The London-based mining company said copper production surged by 42% to 209,000 tonnes in the third quarter of 2023 from 147,000 tonnes a year earlier, due in part to the progressive increase in production from Quellaveco in Peru. For the first nine months to September 30, output also jumped 42% to 596,000 tonnes from 420,000 tonnes in the same period last year.

But the mining group revised down its copper output guidance for 2023 to a range of between 830,000 tonnes and 870,000 tonnes, down from the previous estimate of between 840,000 tonnes and 930,000 tonnes, citing unfavourable ore characteristics and an electrical substation fire at Los Bronces in Chile, as well as the impact of a geotechnical fault line on El Soldado’s production also in Chile.

In 2022, copper production totalled 664,000 tonnes.

For the third quarter, Anglo American said platinum group metal production eased by 2% 1.03 million ounces from 1.05 million ounces a year before. PGM output was down 5% for nine months to 2.9 million ounces from 3.0 million ounces.

In a separate filing, Anglo American Platinum Ltd said it remains on track to deliver its 2023 guidance. Anglo American Platinum is a subsidiary of Anglo American.

Back to parent Anglo American, it said iron ore production from all its operations for the third quarter was down 4% to 15.4 million tonnes from 16.1 million tonnes, principally driven by planned plant maintenance at Minas-Rio in Brazil. But output for nine months rose by 6% to 46.1 million tonnes from 43.6 million tonnes.

Kumba Iron Ore Ltd, another Anglo American business, said it had delivered a third consecutive quarter of stable operational performance for the third quarter to September 30. Production in the third quarter fell by 2% to 9.7 million tonnes from 9.9 million tonnes. But output was up 3% to 28.5 million tonnes for the first nine months of 2023 from 27.7 million tonnes.

On steelmaking coal, Anglo American said production slumped by 21% to 4.4 million tonnes in the third quarter from 5.5 million tonnes, reflecting challenging strata conditions at Moranbah and the ramp-up of Grosvenor in July. Both mines are based in Australia. For the nine months, output rose by 9% to 15.4 million tonnes from 16.1 million tonnes.

Nickel production for the third quarter declined by 7% to 9,300 tonnes from 10,000 tonnes, and output for nine months was down 2% to 28,900 tonnes from 29,600 tonnes.

But manganese ore was 4% higher at 1.0 million tonnes in the third quarter from 973,000 tonnes. Nine-month output grew by 2% to 2.8 million tonnes from 2.8 million tonnes.

Rough diamond production dropped by 23% to 7.4 million carats in the third quarter from 9.6 million carats, primarily due to the planned reduction as Venetia mine in Limpopo transitions to underground operations. For nine months, diamond output fell by 10% to 23.9 million carats from 26.5 million carats.

Except copper, Anglo American kept its 2023 annual guidance for other operations unchanged.

Its PGM estimate ranges between 3.6 million ounces and 4.0 million ounces, compared to 4.02 million ounces in 2022.

Iron ore output is projected to be between 57 million tonnes and 61 million tonnes from 59.3 million tonnes, and steelmaking coal is likely to rise to between 16 million and 19 million tonnes from 15.0 million tonnes.

Diamond production is seen slowing to between 30 million and 33 million carats from 34.6 million carats, and nickel is expected at between 38,000 tonnes and 40,000 tonnes from 39,800 tonnes.

Anglo American shares were largely flat at 2,032.00 pence in London on Tuesday morning. They were up 0.5% at R 472.19 in Johannesburg.

In Johannesburg, Anglo American Platinum shares fell 2.0% to R 634.39, while Kumba shares gained 0.65 to R 487.37.

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