TOP NEWS: Anglo American declares extra payouts after good first half

(Alliance News) - Anglo American PLC on Thursday reported a strong first half with the miner ...

Alliance News 29 July, 2021 | 10:06AM
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(Alliance News) - Anglo American PLC on Thursday reported a strong first half with the miner staying true to its production forecasts, which are set to show solid increases in almost all divisions in 2021.

Anglo American shares were up 3.7% at ZAR667.50 each in Johannesburg on Thursday morning, and added 4.6% to 3,270.00 pence each in London.

Profit attributable to equity shareholders surged to USD5.38 billion from just USD471 million last year. Revenue more-than-doubled to USD21.78 billion from USD10.19 billion a year prior.

Chief Executive Officer Mark Cutifani said: "The first six months of 2021 have seen strong demand and prices for many of our products as economies begin to recoup lost ground, spurred by stimulus measures across the major economies. The platinum group metals and copper – essential to the global decarbonisation imperative as we electrify transport and harness clean, renewable energy – and premium quality iron ore for greener steelmaking, supported by an improving market for diamonds, all contributed to a record half year financial performance."

The miner declared an interim payout equivalent to USD3.31 per share. This includes an interim dividend of USD1.71 - up sharply from last year's USD0.28 - and a special dividend of USD0.80, as well as a share buyback programme for USD1.00 billion, which is worth an extra USD0.80 per share.

Looking at the annual production guidance, diamond production is expected to be in a range of 32 to 33 million carats; copper between 650,000 and 680,000 tonnes; platinum group metals between 4.2 and 4.4 million ounces; iron ore between 64.5 and 66.5 million tonnes; and nickel between 42,000 and 44,000 tonnes.

Notably, metallurgical coal production is seen at 14 to 16 million tonnes this year, but is then set to increase to between 22 and 24 million tonnes in 2022. Metallurgical coal is mined to produce the carbon used in steelmaking, while thermal coal is burned to generate electricity.

In 2020, diamond production was down 19% to 25.1 million carats; copper production was up 1.4% to 647,000; PGMs were down 14% annually to 3.8 million ounces; iron ore production fell 6.7% to 61.1 million tonnes; metallurgical coal production dropped to 16.8 million tonnes; and nickel production was up 2.1% to 43,500 tonnes.

By Greg Roxburgh; gregroxburgh@alliancenews.com

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Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Rating
Anglo American PLC 2,818.50 GBX 0.21

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