Anglo American profits to take hit from hitches in Brazil
Anglo American on Tuesday revealed its profits will take a hit of up to £286 million this year, after pipeline leaks in Brazil forced the miner to close one of its sites.
The FTSE 100 firm this month had said it had suspended operations for three months at its Minas-Rio mine to conduct an inspection into leaks in an iron ore pipeline.
Chief executive Mark Cutifani said following the probe “there will inevitably be a period of analysis and remedial work, prior to testing and restart of operations”.
It admitted it does not expect to ramp up production there again until the fourth quarter of the year.
As a result full-year profits are expected to be $300 million (£215 million) to $400 million lower.
Analysts had been expecting around $8.7 billion.
Bernstein analyst Paul Gait said: “The update indicates a delay that was perhaps worse than we had expected.”
Shares in Anglo American fell 17.6p to 1758p.
Separately the company reported a first-quarter 4% production rise.
Cutifani said: “Our operations have made a solid start to 2018.”
The firm was boosted by copper production, up 9% to 154,900 tonnes. Its De Beers arm saw rough diamonds production increase 15% to 8.5 million carats.
