Anglo American PLC (LON:AAL) has cut its full-year copper production targets for the next two years after severe weather hit its operations in Chile.
Production will be between 570,000 and 600,000 tonnes this year, down from its previous guidance of 600,000 to 630,000 tonnes.
Anglo American has also revised its full-year targets for 2017 and now expects to produce between 570,000 and 600,000 tonnes next year, compared to the 590,000 and 620,000 tonnes it previously estimated.
The London-based firm has blamed the “severe winter weather” experienced at its Los Bronces mine in Chile, with heavy snowfall limiting the amount of copper that could be extracted.
De Beers – Anglo American’s 85%-owned subsidiary – also saw a decline in diamond production in the three months to the end of June, with production falling 19% to 6.4mln carats.
The firm was quick to add that this was the result of a conscious decision to reduce its diamond operations, following the “prevailing trading conditions” experienced in the second half of 2015.
Production at Anglo’s Kumba Iron Ore subsidiary – which it owns a 63.4% stake in – also decreased by 15% to 8.9mln tonnes.
The company says the lower levels of production are down to “the constrained pit and ongoing licence processes” at its Minas-Rio mine in Brazil.
As a result, the company has revised its full year production target to 15-17mln tonnes (previously 15-18mln tonnes).
Elsewhere, refined platinum production increased by 33% to 747,600 ounces, which Anglo said reflects the recovery at the precious metals refinery following a planned stocktake and safety stoppage in the first quarter.
Shares were down 53p, or 6%, to 760p.