Anglo American rallies again, output guidance broadly unchanged
NAN-F-4
Guidance
London, Oct. 25, 2016 (Reuters/NAN) Anglo American on Tuesday left output guidance broadly unchanged for most of its commodities, Chief Executive Mark Cutifani said in a statement.
He said that market conditions had improved for its diamond business, while it trimmed full-year production expectations for coking coal exports.
He said that operational improvements were continuing across the portfolio.
Analysts also said the results were solid and Anglo American’s share price gained another 3.8 per cent by 07:48 a.m., adding to a leap of well over 250 per cent this year.
The gains have been fuelled by a rally in commodities, notably coal.
Coking coal prices have risen by more than 200 per cent, meaning even small changes in output can impact profits and prices.
Anglo American has estimated 10 dollars per tonne price increase in coking coal creates a 142 million dollars change in pre-tax earnings, while for thermal coal the same increase leads to an extra 54-to-200 million dollars depending on the region.
Anglo American lowered full-year production guidance for export metallurgical coal to 20.5-21.5 million tonnes from 21-22 million following the completion of the Foxleigh sale in Australia at the end of August.
Report says a full-year production guidance for export thermal coal from South Africa and Colombia was unchanged at 28-30 million tones. (Reuters/NAN)
Edited by Damilola Oyewole/Julius Enehikhuere