Anglo American, a multinational mining company based in Johannesburg, South Africa and London, United Kingdom said its overall production will rise by more than previously expected between 2018 and 2021, while this year’s costs are forecast to be lower.
The firm, which is the world’s largest producer of platinum, said in an update to investors and analysts that 2018 production will be 2 percent higher than its previous forecast. The development was driven by an increase in the production of copper, diamonds and platinum group metals, while costs will be 5 percent below earlier guidance.
The miner said it expects a 3 percent rise in production in 2019 and a further 5 percent boost in both 2020 and 2021. The rise will lift the firm’s share price, which was one of the biggest gainers on London’s blue chip index.
Mark Cutifani, Chief Executive Officer of Anglo American, whose products also include coal, nickel and iron ore, said “in the next 3-5 years, we’re basically growing the business around 20 percent”.
In a statement released by the company, Cutifani said “we are also confident about the outlook, with production expected to increase by 3 percent in 2019, with cost inflation fully absorbed by our productivity and cost improvements”.
He said Anglo American would maintain a strong balance sheet, especially after cutting debt and raising dividends over the last few years.
The company’s outlook contrasts with rivals BHP, and Rio Tinto, which in October 2018, signalled lower output for copper, a mineral expected to be in high demand from increased electrification.
Anglo American has mining operations in Southern Africa, North and South America and Australia and raised its platinum and palladium targets for 2019 in October 2018.