BENGALURU/JOHANNESBURG (Reuters) – Anglo American said on Tuesday its overall production will rise by more than previously expected between 2018 and 2021, while this year’s costs are forecast to be lower.
Anglo said in an update to investors and analysts that 2018 production will be 2 percent higher than its previous forecast, driven by increases in copper, diamonds and platinum group metals, while costs will be 5 percent below earlier guidance.
The company, whose products also include coal, nickel and iron ore said it expected a 3 percent rise in production in 2019 and a further 5 percent boost in both 2020 and 2021, lifting its share price, which was one of the biggest gainers on London’s blue chip index.
“In the next 3-5 years, we’re basically growing the business around 20 percent,” Chief Executive Officer Mark Cutifani said. Anglo also raised its long-term sustaining capital expenditure to $2.8-$3.1 billion, mainly due to increased spending on its Quellaveco copper project in Peru.
Along with other mining groups, Anglo is investing in improving its businesses while returning cash to shareholders who were badly burned by a commodity price rout two years ago.