Anglo American PLC (LSE:AAL) said production fell in the first quarter and cut full-year production guidance for platinum group metals (PGM), iron ore and metallurgical coal, sending its shares down about 8%.
“Production in the normally slower first quarter was 10% lower than the same period in 2021, impacted by peak Covid-related absenteeism, high rainfall affecting operations in South Africa and Brazil, and safety and other operational challenges at metallurgical coal and iron ore operations,” said outgoing chief executive Mark Cutifani.
“As a result, we are updating our platinum group metals, iron ore and metallurgical coal volume guidance for the full year, and our unit cost guidance for most product groups to also reflect up to date exchange rates and the inflationary pressure on many input prices, particularly diesel.”
PGM production fell 6% from the year-earlier quarter, primarily due to high rainfall at Mogalakwena, with full-year guidance revised to 3.9-4.3mln ounces from 4.1-4.5mln ounces.
Iron ore output dropped 19% as high rainfall and plant issues affected both Kumba and Minas-Rio, with full-year guidance revised to 60-64mln tonnes (Mt) from 63-67Mt previously.
Metallurgical coal production slumped 32% due to the suspension of operations at Moranbah following a fatal underground incident and the end of production from Grasstree. It revised its full-year guidance to 17-19Mt from 20-22Mt previously.
The FTSE 100 miner increased its full-year cost guidance by 9%, reflecting a 4% impact from stronger producer currencies and 3% from inflationary pressures, particularly diesel, as well as the lower production revisions, it said.
The shares were down 8% at £37.13 in mid-morning trading, compared to a 0.15% dip in the FTSE 100.