FTSE 100

Anglo American and Fresnillo share prices: what are the latest production updates?

The share prices of FTSE 100 index mining companies Anglo American (LON: AAL) (AAL.L) and Fresnillo (LON: FRES) (FRES.L) have risen by 9% and fallen by 3%, respectively, over the past month. In that time they have both updated investors on their production.

Anglo American released its production report for the first quarter of the year on 22 April. It confirmed previously announced news regarding the demerger of its South Africa thermal coal operations. It is subject to shareholder approval on 5 May.

Copper production increased by 9% versus the same quarter of the previous year. Meanwhile, the production of platinum group metals increased by 7% and iron ore production was up by 10% due in part to higher plant availability.

Meanwhile, diamonds production fell by 7%, metallurgical coal production was 14% lower and thermal coal production dropped by 20%. Nickel production was up 7%, while manganese ore production increased by 7%.

Anglo American confirmed that it is continuing its strategy of tilting production towards future-enabling metals and minerals. It is also progressing in reducing its carbon footprint, with all of its operations in Brazil, Peru and Chile supplied by renewable electricity.

In the quarter, the firm’s production was back to 95% of normal capacity following a period of disruption prompted by Covid-19. Overall, production was 3% higher than in the same quarter of the prior year.

In the past month there have been several director deals in Anglo American shares. They were all under the share incentive plan or bonus issues. Over the past year the Anglo American share price has risen by 120%. Over the past five years it has gained 380%. The next investor release scheduled by the company is its second quarter production report on 20 July.

Fellow FTSE 100 mining stock Fresnillo has also released share price news in the past month. It released its first quarter production report on 28 April. It showed that quarterly silver production was down 2.4% versus the fourth quarter of 2020. This was driven by a combination of a lower volume ore and a lower ore grade at some of the company’s mines. On a year-on-year basis, silver production declined by 4.5%.

The company’s gold production increased by 5.9% versus the fourth quarter of 2020. This was due to the higher ore grade at some locations, although this was offset by lower volumes of ore elsewhere. Versus the same quarter of the previous year, gold production rose by 15.9%.

Fresnillo’s guidance for the full year remains unchanged at 53.5 to 59.5 moz silver production and 675 to 725 koz gold production.

In addition to its production update, the company also announced that Chairman Alberto Bailleres stepped down from his position on 29 April. Current Deputy Chairman Alejandro Bailleres took over on the same date. The company also announced that Hector Rangel and Eduardo Cepeda will become Non-Executive Directors at the AGM on 24 June.

Over the past year the Fresnillo share price has risen by 16%. Over the past five years it is down 24%. Its next investor update is scheduled for 28 July when its second quarter production update is slated for release.

Not Investment Advice Note: Views expressed are those of the writer. The author does not own any stocks mentioned. The article is information, not advice. Share prices can rise and fall. Past returns are not a guide to the future. Please do your own research.