Expects to deliver sector leading volume growth of 20-25 percent over the next three to five years
Production at giant mining group, Anglo American Corporation, is expected to increase by 14 percent in 2021, the company has announced in a statement.
While production will go up, unit costs will decrease by a further 3 percent still in 2021. According to the statement, Anglo expects unit costs to reduce by 2 percent, this is in spite of lower total production volumes that the company experienced. A unit cost is total expenditure incurred by a company to produce, store and sell one unit of a particular product or service.
Anglo also announced that their forecast capex for 2021 increased to $5.7-6.2 billion to reflect carry-over from 2020 deferrals, additional investment in new business improvement opportunities and the targeting critical path items for the Woodsmith polyhalite project.
“Our agility to protect our people and communities while sustaining our operations has enabled us to continue to improve the quality, resilience and performance of our business in 2020. At the same time, we have continued to enhance our long-term business prospects,” said Chief Executive Officer, Mark Cutifani.
Citifani added that they expect Anglo to deliver sector leading volume growth of 20-25 percent over the next three to five years that includes first copper production from Quellaveco in 2022. “With our technology improvement initiatives, we are on track to deliver our targeted $3-4 billion run-rate of incremental annual improvement by the end of 2022,” he said.
Stephen Pearce, Finance Director of Anglo American, added: “We are delivering strong cash returns, with $5 billion returned to our shareholders since 2017, investing in quick payback growth and maintaining our strong balance sheet. Our balanced investment programme is driving considerable business improvement, with associated emissions and water benefits, while also delivering margin-enhancing growth – taking us towards our longer-term target of a 45-50 percent mining EBITDA margin.”
Anglo American is a British multinational mining company with headquarters in London, England. It is the world’s largest producer of platinum, with around 40 percent of world output, as well as being a major producer of diamonds, copper, nickel, iron ore and metallurgical and thermal coal. The company has operations in Botswana.
This is a company that has 85 percent in leading diamond company in De Beers while the remaining 15 percent is owned by the Government of Botswana.