Anglo American (LSE: AAL) joined a rising listing of miners which have delivered report income this week, with full year earnings of US$20.6 billion and a US$2.1-billion remaining dividend, on the again of hovering commodity costs.
“These are clearly the strongest outcomes we have now ever posted,” outgoing chief govt officer Mark Cutifani instructed reporters.
“Costs have been very a lot pushed by provide struggling to maintain up with that demand. And I believe that can in all probability be with us for one more 12 months or two,” he stated.
Cutifani will retire on the firm’s annual shareholder assembly in April however will stay within the firm till June to help the administration transition. He’s handing the reins to Duncan Wanblad, Anglo’s present director of technique and enterprise improvement.
Iron ore, certainly one of Anglo’s predominant commodities, soared previous US$230 a tonne final 12 months, whereas copper hit US$10,500 a tonne.
Internet debt was diminished to US$3.8 billion by the tip of 2021 from US$5.5 billion a 12 months earlier whereas capital expenditure went up by 48% to US$565 million as spending on tasks deferred in 2020 due to the coronavirus pandemic picked up once more.
Since 2017, Anglo has returned US$12.2 billion to shareholders and invested US$18 billion within the enterprise.
The corporate’s outcomes are the final of an earnings season during which rival miners Rio Tinto (ASX, LSE: RIO; NYSE: RIO; ASX: RIO) BHP (LSE: BHP; NYSE: BHP; ASX: BHP) and Antofagasta (LSE: ANTO) additionally posted report outcomes and dividends.
Quellaveco and Ukraine
Anglo American stated its large Quellaveco copper venture in Peru was on monitor to begin production in mid-2022. It expects the asset to generate between 120,000 and 160,000 tonnes of copper this 12 months, and 300,000 tonnes per 12 months for the primary ten years at full manufacturing.
Quellaveco is likely one of the few sizable ones within the pipeline in an business attempting to find extra of the steel, utilized in photo voltaic panels and electrical automobiles, because the world transitions to a greener financial system
Requested about Russia’s invasion of Ukraine, chief monetary officer Stephen Pearce stated he was watching the scenario carefully.
Russia is a giant producer of diamonds, copper, nickel and platinum, and any sanctions imposed may have a huge impact on these markets.
“We don’t have a direct publicity,” he stated. “It’s actually round how product flows.”