Global miner Anglo American posted a second consecutive annual net loss after the group wrote down $1.9 billion from the value of its platinum division and projects in South America.
The group posted a 6 percent rise in underlying operating profit for 2013 to $6.6 billion, ahead of analyst forecasts of $5.6 billion found in a Reuters poll. The company's own forecast was for $6.3 billion. Investors appeared pleased with the results, sending the stock higher in morning trade in London.
Chief executive Mark Cutifani told CNBC the group was looking at more mechanized mining solutions in platinum as a way of dealing with cost pressures, as industrial action remains a serious concern.
Union leaders in South African mines initiated a wage strike at the world's three top platinum producers -- Anglo American, Impala Platinum and Lonmin -- earlier this year. Mining companies have said they cannot afford the increases employees are demanding, due to increasing production costs and stagnated demand. The discussions are ongoing.
"I think costs are certainly rising in platinum, but if you look across the portfolio we have seen a two percent decrease in costs on a real basis, so we are making good ground on our cost," he said.
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"In platinum we have to keep working on our restructuring and reconfiguration which means you are going to see more platinum from our open pits and mechanized underground operations and that is the most important way we can deal with those cost pressures," he added.