Anglo American (JO) reported significant declines in copper and diamond production for the third quarter of 2024, but it has maintained its production guidance for the year. Copper output fell by 13% in the July to September period, while rough diamond production decreased by 25%, primarily due to prolonged lower demand.
For the first nine months of 2024, copper production totaled 575,000 tons, down 4%, while diamond production reached 18.9 million carats, a 21% decline. Despite these drops, the company continues to project annual copper production between 730,000-790,000 tons and rough diamond output of 23-26 million carats.
Anglo American is restructuring its operations to focus more on copper, a key energy transition metal, after fending off a $49 billion takeover bid from BHP Group (NYSE) in May. Following asset sales, copper is expected to constitute 60% of the company’s portfolio.
In addition to its copper assets in Chile, Anglo will retain iron ore mines in South Africa and Brazil, along with the Woodsmith fertilizer project in the UK, which has seen slowed development. The company also reported a 6% decline in steelmaking coal production in Q3 after closing its Grosvenor mine in Queensland due to an underground fire, leading to a revised annual production forecast of 14-15.5 million tons.
Shares of Anglo American opened 2.2% higher, reflecting an overall increase of approximately 18% year-to-date. The company is currently finalizing bids for its coal assets and expects to announce a sale agreement soon.
