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Anglo American shares climb after production update

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(Kitco News) - The Anglo American (AAL:LSE) share price jumped around 1.90% at one stage during early U.K. trade after the companies production update.

The update noted that rough diamond production increased by 134%, reflecting planned higher production in response to the ongoing consumer demand recovery.

Platinum Group Metals (PGMs) production rose 59%, with Mogalakwena production increasing by 11%, reflecting the relatively lower impact of Covid-19 lockdowns compared to Q2 2020. Strong refined output reflected stable performance from the ACP Phase A unit.

Elsewhere, Iron ore production jumped 6%, driven primarily by Kumba, reflecting the lower impact of Covid-19 lockdowns compared to Q2 2020. Lastly, copper production increased by 2% due to strong plant performance at Los Bronces.

Mark Cutifani, Chief Executive of Anglo American stated,  "We have delivered a solid operational performance supported by comprehensive Covid-19 measures to help safeguard the lives and livelihoods of our workforce and host communities. We have generally maintained operating levels at approximately 95%(1) of normal capacity and, as a consequence, production increased by 20%(2) compared to Q2 of last year, with planned higher rough diamond production at De Beers, as well as strong plant performance at our Los Bronces copper operation in Chile and higher throughput at our Mogalakwena platinum group metals mine in South Africa.

"We also successfully completed the demerger of our thermal coal operations in South Africa and announced the sale of our minority interest in Cerrejón in Colombia, marking the last stage of our transition from thermal coal operations, ahead of schedule. Our portfolio and growth investments are increasingly focused on those future-enabling metals and minerals that are critical to decarbonising energy and transport and to meeting consumers' growing needs, from luxury to everyday."

Looking at the daily share price chart there has been a clear retracement in recent weeks down from the high of 3509 to 2810 today. One of the key features on the chart is the head and shoulders formation but the neck line at the blue shaded area still is yet to be broken. If it does break then the price could move to the next support zone down at 2327. On the topside, a good sign for the bulls would be a break of the purple downward sloping trendline. If this is the case then the 3000 psychological zone would be next up and the volume profile shows that there has been a lot of activity at that zone.

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