Ango American copper production bounces back in Q4 2020
(Kitco News) - The Anglo American Q4 report shows increased copper production. This means copper production in Q4 was up 6% vs last year but iron ore production was down 11%.
The company reported a copper production increase of 6% as Los Bronces secured access to industrial water for processing, while Collahuasi delivered record production for the 12 month period, which more than offset planned maintenance in the quarter. Iron ore production at Minas-Rio in Brazil improved by 5% to a record 6.5 million tonnes for the quarter. The film also said rough diamond sales continued to improve, with midstream demand supported by an encouraging holiday selling season for diamond jewellery.
Mark Cutifani, Chief Executive of Anglo American, said "The strong performance recovery in the second half continued through the fourth quarter, following the Covid-19 disruptions earlier in the year. As expected, second-half production returned to 95% of 2019 rates, benefiting from strong performances in copper at Los Bronces in Chile and in iron ore at Minas-Rio in Brazil. The recovery was all the more credible given planned maintenance at both the Collahuasi copper and Kumba iron ore operations and the suspension of operations at the Grosvenor metallurgical coal mine.
He added "As we begin 2021, we are continuing to see positive demand for rough diamonds, supported by consumer demand for diamond jewellery in the holiday selling season. While it is still too early to signal a strong and sustained recovery, the resilience in demand in spite of ongoing Covid-19 impacts is very encouraging. Lastly he said, "While many jurisdictions are experiencing a new wave of Covid-19 infections, our extensive health measures and revised operating procedures have helped keep our people safe and healthy, while supporting solid production and cost management efforts across our global operations.".
In terms of guidance, copper is unchanged at 640,000-680,000 tonnes, subject to the extent of further Covid-19 related disruption. Production guidance for diamond is revised to 32-34 million carats vs previous 33-35 million carats. Iron ore production guidance is unchanged at 64-67 million tonnes.
Looking at the daily chart the price has risen in a tough environment. There is a big support level at the yellow area near 2266 and it could help provide some support. The underlying trend is still a bullish one and this seems like a deep retracement but if there is a lower high lower low formation this could change. The volume in the move lower has been good and we will need to see if the move back up can encompass the bears.