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(Alliance News) - Anglo American PLC reported on Thursday its profit slumped by one third in the first half of 2022, as the diversified miner faced "considerable challenges" that hobbled production across most of its operations, ranging from copper to platinum, nickel and iron ore.
The London-based mining house said its pretax profit fell by 33% to USD6.80 billion in the six months that ended June 30 from USD10.18 billion in the same period last year.
Revenue fell by 17% to USD18.11 billion from USD21.78 billion, dragging down underlying earnings before interest, tax, depreciation and amortisation.
Underlying Ebitda dropped by 28% to USD8.70 billion from USD12.14 billion due to a decrease in the price for the group's basket of products, unfavourable sales volumes and higher input costs across the group.
In response, Anglo American slashed its dividend, declaring an interim payout of USD1.24 per share, down 27% from USD1.71.
For six months, basic earnings per share declined by 28% to USD3.03 from USD4.18.
"As we progressed through the first half, we began to regain operational momentum while also adjusting to the considerable challenges posed by Covid-19 related absenteeism, disrupted supply chains and logistics corridors, weather extremes and geopolitically-led economic volatility," Anglo American Chief Executive Duncan Wanblad said.
Copper production was 17% lower at 273,400 tonnes from 330,000, while nickel output decreased by 5% to 19,600 tonnes from 20,700, primarily due to lower ore grades as a result of licensing delays that are now resolved, as well as the impact of heavy rainfall.
Platinum group metals production eased by 4% to 1.9 million ounces from 2.1 million, as a result of lower grades at the Mogalakwena mine, partially offset by increased production from Mototolo, Unki and Amandelbult.
Iron ore production fell by 14% to 27.5 million tonnes from 31.9 million tonnes. At Kumba, production decreased by 13% to 17.8 million tonnes from 20.4 million tonnes, driven by extremely high rainfall, a safety intervention at Kolomela and equipment reliability.
Steelmaking coal production was down 22% to 4.8 million tonnes from 6.2 million, principally due to the planned end of mining at the Grasstree operation in January and ramp-up of the replacement Aquila longwall, which began operations in February and fully ramped up in June.
But De Beers' rough diamond production increased by 10% to 16.9 million carats from 15.4 million carats, reflecting a strong operational performance and higher planned levels of production to meet continued strong demand for rough diamonds, Anglo American said.
PGM metal in concentrate production full-year guidance for 2022 is 3.9 million ounces to 4.3 million ounces, compared to 4.2 million ounces in 2021.
Annual copper production forecast is 660,000 to 750,000 tonnes, up from 647,000 in 2021.
As for nickel, production is expected to range within 40.0 million tonnes and 42.0 million tonnes, compared to 41.7 million tonnes in 2021.
Full year diamond production guidance for 2022 is 32 million to 34 million carats, versus 32.3 million carats in 2021.
Annual production guidance for Kumba is 38 million to 40 million tonnes, compared to 40.9 million tones last year.
Anglo American shares advanced by 4.7% to 2,904.00 pence in London early on Thursday. They were up 5.1% at ZAR590.33 in Johannesburg.
By Artwell Dlamini; artwelldlamini@alliancenews.com
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