Anglo production report

Anglo American released their production report for the quarter and year to end December 2012 on Friday. At almost every single measure it looked like a beat too, but the suggestion was that folks had rolled their expectations lower. And no matter what your expectations are, when they are beaten that is a good thing. I did see a preview to the production report and then I saw the same analyst with commentary around the numbers. And he was surprised to the upside, which is better than being surprised with a larger bill from so and so.


I am not sure what folks did in the old days long before pdf's and really brilliant investor relations folks, but I am very glad that I live in the digital era so that I can have access to reports like this: Anglo American plc Production Report for the fourth quarter ended 31 December 2012.


On the Iron Ore production side the quicker than anticipated ramp up of Kolomela offset the lost production from the Sishen strike. The other good news in a way was that the stockpile had been reduced by 29 percent. Byron will cover the local iron ore division in detail with his look at Kumba Iron Ore. Brazil, and that ghastly iron ore project at Minas Rio was a little revealing: "Anglo American is carrying out a detailed capital cost review to assess the outstanding capital expenditure requirements in light of current development progress and the disruptive challenges faced by the project." Or is it revealing? Can we read into this that all options are being explored. Some suggest a JV on the phase II expansion. Some suggest more asset sales in order to counter the rising costs of the project. Thanks Ms. Carroll, thanks for nothing.

The biggest surprise was probably diamonds, which may be a girl's best friend (that is not even PC), but might not necessarily be an investors best friend. Jwaneng performed ahead of expectations. Thermal coal was also an improvement ahead of expectations. Even platinum production. On the platinum score however, there seems to be a delay in the restructuring of their mines. In order to appease all "stakeholders". On balance a decent enough report, shareholders should breathe a little easier.