Anglo American reports US$8.6bn profit

Anglo American recorded an US$8.6bn profit on the back of a sharp 63% jump in revenues in the year to December 2021.

Free cash flow totalled US$7.8bn on account of the 'strong price environment' in the first half of last year - generating an underlying EBITDA of US$20.6bn -  and US$6.2bn will be returned to shareholders at US$4.99 per share.

Prospects look favourable as the company said a large majority of its output and investment capital is focused on 'future-enabling products' – essentially metals and minerals needed for decarbonisation and global consumer demand.

Mark Cutifani, Chief Executive of Anglo American, said: “In a year of two distinct halves, we recorded strong demand and prices for many products as economies recouped lost ground, spurred by government stimulus. Copper and PGMs – essential to the global decarbonisation imperative – and premium quality iron ore for greener steelmaking, supported by an improving market for diamonds, all contributed to a record financial performance."

Balanced investments are set to drive margin-enhancing volume growth of 35% over the next decade, including copper from Quellaveco, which is due to start up mid-year.

Ian Tyler will succeed Byron Grote as the Senior Independent Director on its Board, when Dr Grote steps down from the Board after nine years.

Anglo American recently restarted its Grosvenor metallurgical coal mining operation in Queensland, Australia, following a gas incident in May 2020 in which five workers were seriously injured during a methane explosion at the underground mine (click here).