Investing.com -- Anglo American PLC (LON:AAL) on Thursday reported its first-quarter production figures, showing mixed results across the mining giant’s range of commodities, with copper output slightly exceeding expectations, while refined PGM production fell short.
Shares of Anglo American edged down 0.5% in morning trade.
Anglo American said its first quarter copper production of 169kt was 2% higher than RBC estimates and aligned with consensus, thanks to higher grades at Los Bronces.
However, Collahuasi’s production was impacted by lower grades and throughput. Iron ore production from Kumba and Minas Rio met or exceeded forecasts, with Minas Rio’s output notably 12% above expectations due to better performance at the beneficiation plant.
The company also reported higher than anticipated diamond production, yet this seems to have contributed to a continued stock build, as sales lagged behind.
Steelmaking coal production notably underperformed, coming in at 23% below RBC estimates after an ignition incident at Moranbah. Despite these variances, Anglo American has made no changes to its FY25 production and cost guidance.
Realised prices for commodities were generally above RBC’s expectations, with the exception of diamond pricing, which fell short by 23%.
The company’s restructuring efforts, including the demerger of Amplats and the sale of its steelmaking coal and nickel businesses, are reportedly on track, although market concerns persist regarding Peabody’s ability to refinance its bridge loan for the acquisition.
RBC analysts commented, "Overall production and pricing largely inline at the assets remaining in the business. Restructuring in theory remains on track but there are market concerns on how Peabody can afford to refinance its bridge loan for the acquisition. Peabody shares down 56% since the acquisition was announced with thermal coal prices at a four-year low."
RBC views the risk/reward for Anglo American as more balanced at current levels and maintains a Sector Perform rating with a price target of 2,110p.