Anglo American (AAL)

Sector:

Mining

Index:

FTSE 100

2,024.00p
   
  • Change Today:
    -78.00p
  • 52 Week High: 2,773.50p
  • 52 Week Low: 1,670.20p
  • Currency: UK Pounds
  • Shares Issued: 1,337.58m
  • Volume: 2,253,189
  • Market Cap: £27,073m
  • RiskGrade: 209

Anglo American revenue, earnings slip as it focuses on costs

By Josh White

Date: Thursday 25 Jul 2024

LONDON (ShareCast) - (Sharecast News) - Anglo American reported $5bn in underlying EBITDA for the first half of 2024 on Thursday, down 3% year-on-year, after a strong operational performance that it said largely counterbalanced a 10% decrease in the average product basket price.
The FTSE 100 miner highlighted notable strength in its copper and iron ore segments, which collectively contributed $3.5bn to EBITDA.

Revenue for the period totalled $14.46bn for the six months ended 30 June, down 8% compared to the same period last year.

Despite the challenging pricing environment, Anglo American achieved a 4% improvement in unit costs, driven by favourable currency movements, operational enhancements, and effective cost control measures.

However, the company recorded a $0.7bn loss attributable to equity shareholders, primarily due to a $1.6bn impairment on the Woodsmith project following a decision to slow its development.

Anglo American's net debt stood at $11.1bn , maintaining a leverage ratio of 1.1 times annualised EBITDA.

The company said it remained on track with its cost reduction initiatives, aiming to cut annual costs by around $1.7bn and reduce capital expenditure by around $1.6bn over the 2024 to 2026 period.

An interim dividend of $0.5bn, or 42 cents per share, was declared, aligning with the company's policy of a 40% payout ratio.

"I am very encouraged by a strong operational performance that delivered steady volumes and a 4% improvement in unit costs, while still facing weak cyclical markets for platinum group metals and diamonds," said chief executive officer Duncan Wanblad.

"We are on track to reduce our annual run rate costs by $1.7bn and reduce capital spend by $1.6bn over the 2024-2026 period.

"We are moving at pace to create a much more agile and structurally profitable mining company focused on our exceptional quality copper and premium iron ore businesses, which both continue to perform very strongly, while maintaining our growth optionality in crop nutrients."

Wanblad said the company was committed to completing the key elements of the transformation by the end of 2025, creating a "simpler, highly valued" mining company with "extensive" growth options and considerable strategic flexibility.

"We are transforming Anglo American by focusing on our world-class asset base in copper, premium iron ore and crop nutrients, thereby accelerating the recognition of value inherent in our business.

"From that compelling platform, I believe our proven project delivery capabilities, global relationship networks and longstanding reputation as a responsible mining company will together help us unlock the outstanding mineral endowment options within our portfolio and other growth opportunities that we will aim to secure over time.

"We have taken clear and decisive action to deliver value in the long term interests of our shareholders and other stakeholders, from a portfolio that will deliver the products that underpin the energy transition, improving global living standards and food security."

At 0924 BST, shares in Anglo American were down 0.86% at 2,204p.

Reporting by Josh White for Sharecast.com.

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Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

Note 2: RiskGrade figures are provided by RiskMetrics.

 

Anglo American Market Data

Currency UK Pounds
Share Price 2,024.00p
Change Today -78.00p
% Change -3.71 %
52 Week High 2,773.50p
52 Week Low 1,670.20p
Volume 2,253,189
Shares Issued 1,337.58m
Market Cap £27,073m
RiskGrade 209

Anglo American Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
61.74% above the market average61.74% above the market average61.74% above the market average61.74% above the market average61.74% above the market average
3.88% above the sector average3.88% above the sector average3.88% above the sector average3.88% above the sector average3.88% above the sector average
Price Trend
1.25% below the market average1.25% below the market average1.25% below the market average1.25% below the market average1.25% below the market average
35.77% above the sector average35.77% above the sector average35.77% above the sector average35.77% above the sector average35.77% above the sector average
Income
27.55% above the market average27.55% above the market average27.55% above the market average27.55% above the market average27.55% above the market average
42.86% below the sector average42.86% below the sector average42.86% below the sector average42.86% below the sector average42.86% below the sector average
Growth
89.25% below the market average89.25% below the market average89.25% below the market average89.25% below the market average89.25% below the market average
89.83% below the sector average89.83% below the sector average89.83% below the sector average89.83% below the sector average89.83% below the sector average

What The Brokers Say

Strong Buy 5
Buy 3
Neutral 11
Sell 0
Strong Sell 1
Total 20
buy
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

Anglo American Dividends

  Latest Previous
  Interim Final
Ex-Div 15-Aug-24 14-Mar-24
Paid 27-Sep-24 03-May-24
Amount 42.00¢ 41.00¢

Trades for 06-Sep-2024

Time Volume / Share Price
16:36 23,790 @ 2,024.00p
16:36 23,828 @ 2,023.49p
16:36 23,828 @ 2,023.49p
16:35 5,000 @ 2,024.00p
16:35 1,118 @ 2,024.00p

Anglo American Key Personnel

Chair Stuart J Chambers
CEO Duncan Wanblad
Finance Director John Heasley

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