Anglo American’s production guidance reduction and higher cost outlook for its diamond operations are concerning, but RBC Capital anticipates no significant impact on consensus figures due to the diamond unit’s relatively small contribution (4%) to the full-year EBITDA forecast. Analyst Srivathsan Manoharan suggests that the production cuts could potentially support diamond prices, partially offsetting the increased costs.
In other company news, Anglo American reported an 11% rise in copper production to 198,000 metric tons, driven by improved throughput at the Quellaveco mine in Peru. However, platinum group metals production declined by 7% year-over-year to 834,000 ounces, with flat sales volumes but a 30% drop in the average realized price.
