Anglo American (LSE: AAL) reported a 24% increase in copper production to 826,000 metric tons in 2023. However, this falls short of the group’s previously forecasted range of 830,000-870,000 tons for the year.
Despite missing its target, Anglo American left its 2024 copper output guidance unchanged at 730,000-790,000 tons. Copper is a crucial metal for manufacturing electric vehicles and renewable energy infrastructure. Analysts predict a global copper deficit from 2023 onwards, with major reductions in supply expected from large producers like Anglo American, Glencore and Vale Base Metals.
Anglo American also announced $1.8 billion in spending cuts through 2026 in December, which it could potentially deepen if demand worsens.
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The company reported an 8% decline in rough diamond production to 31.9 million carats in 2023. Iron ore production rose slightly by 1% over the period, while platinum group metals registered a 5% drop in output.
Anglo American shares were trading flat on Thursday morning. The stock price has plunged 47% over the past 12 months.
