Anglo shares jump as company says production to exceed previous guidance
The mining group said it also expected costs to fall
Anglo American shares jumped as much as 3.2% after the company said it expected production in 2018 to be above its previous guidance, while costs will be 5% lower.
"We are also confident about the outlook, with production expected to increase by 3% in 2019, with cost inflation fully absorbed by our productivity and cost improvements," CEO Mark Cutifani said in a statement on Tuesday.
Cutifani said Anglo expected a further 5% production increase in both 2020 and 2021.
The company had reduced its net debt by more than $9bn in the past three years, while paying almost $2bn in dividends in the past 18 months, he said.
"We are now well positioned to drive enhanced returns through our capital allocation options, maintaining a strong balance sheet while delivering attractive shareholder returns and value-adding disciplined growth."
Anglo American shares were up 2.76% to R295.85 as of 2.25pm, after reaching an intraday high of R297.03.
At the same time the JSE was up 1.41%. Anglo has risen 15.73% in 2018 so far, while the JSE has fallen 14.05%