Anglo lifts diamond as industry rebounds

Production picks up in third quarter

MINING giant Anglo American’s share price jumped more than 3 percent yesterday after it said diamond production rose in the third quarter, as the industry continued to rebound.

Chief executive Mark Cutifani said: “Operational improvements continue across the portfolio, delivering a 4 percent production increase on a copper equivalent basis in the third quarter, and a 12 percent increase compared to second quarter 2016.”

Anglo American has said it was focusing on high value core commodities, including platinum group minerals, copper and diamonds.

The company maintained full-year forecasts for most of the commodities it produces.

Third-quarter output of the gems climbed 4 percent to 6.3 million carats from 6 million carats a year earlier, the London-based company said yesterday.

While the increased output reflected improved market conditions, Anglo remained cautious about the outlook, it said.

The century-old company is trying to engineer a turnaround after a slump in commodity prices sent its stock plummeting 75 percent last year. The producer plans to sell more than half its mines and wants to exit the iron ore and coal business to focus on its best assets – diamonds, platinum and copper.

It is the best performer in the FTSE 100 index so far this year, more than tripling in the period.

The diamond industry has rebounded this year after Anglo’s De Beers unit and Russian rival Alrosa PJSC cut supply last year. While rough-diamond prices gained 7.4 percent this year, De Beers’s management and other executives had cautioned that the final six months of 2016 could be more difficult. The company maintained its full-year goal of 26 million carats to 28 million carats.

“Results from Anglo American this morning were broadly positive, as the bulks