Anglo American says mining prospects ‘have rarely looked better’
Mining giant Anglo American says prospects “have rarely looked better” as part of its performance update to investors today.
In a global battle for minerals, Anglo American chief executive Duncan Wanblad said he believed his firm’s ability to tap “world class” assets would ensure “ever more attractive” demand.
“Operationally, we are improving cost performance and cash generation by reconfiguring a number of our assets to adjust the production profile to near term constraints and market conditions, and thereby also protect longer term value,” Wanblad said.
The improvements are meant to aid Anglo American in delivering a $1.8bn (£1.5bn) lower capital expenditure in the next three years, and lower unit costs in the new year, despite ongoing inflation costs.
Anglo American reaffirmed production guidance of a 3 per cent year on year increase.
Wanblad added: “Looking ahead, the fundamental supply and demand picture for many metals and minerals is ever more attractive.
“Many of the world’s major economies are focusing their resources on meeting global decarbonisation timelines and, as the global population grows, continues to urbanise and demands higher living standards, we expect unprecedented demand for responsibly produced raw materials.”
The focus moving forward will be to meet demand trends, Wanblad said, “drawing on the bench of well sequenced margin-enhancing project options.”