Date: Dec 12, 2018

Anglo American has raised production forecasts for 2018 as the miner continues to sweat its assets harder.

Ahead of a briefing to analysts and investors on Tuesday, Anglo said it expected 2018 output to be 2 per cent above previous guidance and costs 5 per cent below.

“We are also confident about the outlook, with production expected to increase by 3 per cent in 2019, with cost inflation fully absorbed by our productivity and cost improvements,” said chief executive Mark Cutifani. “We expect a further 5 per cent production increase in both 2020 and 2021.”

Anglo also flagged an increase in sustaining capital expenditure, which it expects to average $2.8bn to $3.1bn over the long term

Since Mr Cutifani took the helm in 2013, Anglo has streamlined its portfolio, slashed costs and improved its productivity. It has also reduced its net debt, which now stands at $4bn and is one of the lowest in the sector.

Yet, Anglo remains the only one of the big diversified mining companies not to have launched a share buyback programme, much to the puzzlement of some shareholders.

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