Anglo American lifts iron ore guidance on the back of strong results

 
Courtney Goldsmith
Follow Courtney
Melbourne 2006 Queen's Baton Relay: Western Australia
Shareholders are hoping Anglo American will bring back dividend payments (Source: Getty)

Anglo American posted a strong set of production results for the second quarter as it ramped up output in its iron ore and diamond mines.

The figures

Iron ore volumes rose 28 per cent to 11.4m tonnes as Anglo improved productivity at its Sishen mine for the period ended 30 June.

The firm increased its iron ore guidance for the full year to 41 to 43m tonnes from 40 to 42m tonnes previously due to Sishen's improvements.

For the firm's De Beers subsidiary, diamond production jumped 36 per cent to 8.7m carats due to the ramp up at its Gahcho Kue mine in Canada.

Coking coal output fell by 19 per cent to 4m tonnes due to damage by Cyclone Debbie in Australia.

Shares in the FTSE 100 miner lifted 0.71 per cent to 1,136.00p.

Why it's interesting

Chief executive Mark Cutifani said Anglo worked to ramp up diamond, iron ore and coking coal production over the quarter.

The improvement at Gahcho Kue alongside increased production elsewhere indicates a recovering diamond market, which should be taken positively, according to Tyler Broda, analyst at RBC Capital Markets.

Anglo's strong showing today has got investors thinking the company will start paying dividends again.

What Anglo American said

Mark Cutifani, the chief executive of Anglo American, said:

We have delivered another strong production quarter across most of our businesses. Through the improvements we have made to our portfolio and the efficiencies we are driving, we continue to unlock the potential of our world class assets.

Read more: Anglo American has appointed its new chairman

Related articles