Anglo American has forecast to produce 620,000-670,000mt of copper in 2020. Cost guidance for copper production is over 125¢/lb in 2020.
Anglo produced 638,000mt copper in 2019, down 5pc from a year ago. In December quarter, copper production was 159,000mt, down by 13pc from 184,000mt in the prior quarter. Copper sales volume was 644,000mt, down 4pc from the prior year. In 2019, Anglo’s realised price for copper was 273¢/lb and mining margin was 44pc.
Production at its copper mine Los Bronces, in Chile was hit by the worst drought in 60 years. However, the company is confident of maintaining its guidance for 2020.
For 2021, Anglo targets copper production of 620,000-680,000mt, while in 2022 Chile will produce 600,000-660,000mt copper and the Quellaveco mine, in Peru is expected to commence operations and produce 100,000-150,000mt. The company aims to produce 1mn mt copper from 2022 as Quellaveco is expected to produce an average of more than 330,000mt/yr over the first five years.
Anglo has forecast to produce 42,000-44,000mt of nickel in 2020. Cost guidance for nickel production is over 450¢/lb in 2020. In 2019, Anglo American produced 42,600mt nickel, by a percent from a year ago. Sales volume was 41,700mt, down 3pc from the prior year. In 2019, Anglo’s realised price for nickel was 624¢/lb and C1 cost was 380¢/lb and mining margin was 33pc. In 2022, the company aims to produce more than 50,000mt nickel as production is expected to surge on implementation of bulk ore sorting technology. The construction of the bulk sorter will start at Barro Alto late in October or November.