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(Alliance News) - Anglo American PLC on Thursday announced a solid shareholder payout for 2020 despite seeing a dip in earnings, which were boosted by terrific iron ore performance.
Anglo American shares jumped 5.5% to ZAR613.00 each in Johannesburg on Thursday morning, and were up 3.4% at 2,938.00 pence each in London.
The mining giant posted underlying earnings before interest, tax, depreciation and amortisation for 2020 of USD9.80 billion, slipping 2.1% from USD10.01 billion a year prior.
Revenue was up 3.4% to USD30.90 billion from USD29.87 billion, beating the company-compiled analyst consensus which saw revenue at USD29.96 billion.
Chief Executive Mark Cutifani said the miner's results reflect the resilience of its diversified business despite the operational disruptions of the first half, while additionally benefitting from strong commodity prices.
Iron ore underlying Ebitda surged 34% to USD4.57 billion from USD3.41 billion, making it the biggest earner for Anglo American, in-line with the company-compiled analyst consensus predictions.
"Continued strong performances from our Minas-Rio iron ore operation in Brazil and the Collahuasi copper joint operation in Chile helped partly offset the impacts of Covid-19," Anglo American said.
"Covid-19 lockdowns across southern Africa in the first half of the year impacted production at PGMs, Kumba, De Beers and Thermal Coal. In response to the pandemic, comprehensive safeguarding measures were put in place at operations and in partnership with local communities across the business, enabling a return to more normal operating levels in the second half of the year," the company added.
Anglo American declared a final dividend of USD0.72 per share, up 53% from USD0.47 per share, beating the analyst consensus prediction of USD0.65 per share. This brings the company's total annual payout to USD1.00 per share, a touch lower from USD1.09 per share the year before.
Going forward, Cutifani said: "Looking further out, we benefit from a sequence of high returning growth options, mainly in copper, platinum group metals, and now also crop nutrients. Our business is increasingly positioned to supply those products that are fundamental to enabling a low carbon economy and catering to global consumer demand trends. Combined with our integrated approach to technology and sustainability – also helping us reach carbon neutrality across our operations by 2040 – we are well positioned to meet the expectations of our full breadth of stakeholders."
By Greg Roxburgh; gregroxburgh@alliancenews.com
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