Anglo American maintains production despite the COVID-19 pandemic
(Kitco News) - Anglo American PLC has announced Thursday that they have kept around 95% of their capacity running despite COVID-19 disruptions.
There has also been a decent 24% increase in mineral production from the firm. The company also said "Copper production increased by 4% as Collahuasi in Chile increased production by 17% due to ongoing strong performance.".
The firm also adapted to the fall in demand for diamonds and said rough diamond production decreased by 4% to 7.2 million carats driven by planned reductions. This could continue as Covid-19 related measures remain in place to safeguard the workforce while maintaining operational continuity. Full Year Guidance is unchanged at 25-27 million carats (100% basis), subject to continuous review based on the disruptions related to Covid-19 as well as the timing and scale of the recovery in demand.
Mark Cutifani, Chief Executive of Anglo American commented in the report saying: "Anglo American has continued its strong operational recovery, with a 24% increase in production compared to Q2. We are currently operating at about 95% of our normal capacity - testament to our efforts to protect operational continuity across our business, whilst maintaining comprehensive measures across our operations to safeguard the lives and livelihoods of our workforce and host communities, as part of our holistic response to Covid-19.
Looking at the daily chart below, the price is trading just above flat and this is despite the FTSE 100 falling 0.67% on the session. There is a clear wedge type pattern that could break if there is a change in the macro sentiment. The £20 per share level is an obvious psychological resistance and if it is broken maybe that could be an indication the bulls are back in charge. Beyond that the blue line at £22.66 is a key resistance but we would need to see the pattern break to the upside first.