Anglo American restructuring 'on track' as Q2 core output rises

(Sharecast News) - Anglo American has reported a "solid" second quarter, with its core businesses of iron ore and copper on track to meet full-year guidance, as the company continues to progress its massive restructuring plan. Copper output totalled 173,000 tonnes in the second quarter, down 11% over last year but 3% ahead of the first quarter, benefitting from strong performance at both the Quellaveco and Los Bronces projects, while Collahuasi improved from its first quarter.

Anglo also produced 15.9m tonnes of iron ore during the period, up 2% year-on-year and 3% over the quarter, with "another excellent quarter of delivery" from both the Minas-Rio and Kumba projects.

Meanwhile, output at the company's non-core businesses which it plans to exit - diamonds, steelmaking coal and nickel - were all significantly lower than comparative periods.

Chief executive Duncan Wanblad said the company's portfolio simplification and cost-reduction programmes remain "on track".

"Looking beyond this transitionary year, we will emerge as a highly differentiated, higher margin and more cash generative business setting us up to deliver the outstanding potential of our world class assets and resource endowments," Wanblad said.

Anglo shares were up 1% at 2,370p in early deals on Thursday.