Anglo’s bullish production forecasts boost share price
Group shows the benefits of being more streamlined than five years ago
Anglo American’s share price soared in London and Johannesburg after the diversified miner released a bullish production outlook for the next three years and tightly controlled costs, raising hope for improved dividend payments from higher cash inflows. Anglo would beat its 2018 production forecast by 2% while costs would be 5% lower, CEO Mark Cutifani said on Tuesday. He outlined targets for coming years as the group brings its stalled Minas Rio iron-ore mine in Brazil back into production and advances its copper growth strategy. Anglo shares at its primary London listing rose 5% and in Johannesburg, its historic home, its stock increased 3% as the market digested a year-end investor update to analysts that detailed increased production over the next few years. The increased output for 2018 was driven by copper, platinum group metals and diamond production, while costs will be 5% lower than expected. In the next two years, production will rise 3% and 5% respectively, while costs wi...
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