(Alliance News) - Anglo American PLC reported on Tuesday investors had taken notice of measures the diversified mining group had taken to improve its performance.
Speaking at an annual general meeting held on Tuesday, Chair Stuart Chambers told shareholders that the company's share price had risen "markedly" in the first quarter of 2024.
"I was pleased to see a marked improvement in share price performance in the first quarter of this year - and I believe that recognises some of the actions we have taken and the sheer quality and potential of our copper portfolio as the copper price starts to reflect the impact of the underlying supply and demand trends," Chambers said.
The stock has risen around 36% year to date in Johannesburg, and has gained about 33% in London.
Shares have increased further since larger peer BHP Group Ltd jumped on Thursday last week confirmed it had offered to buy Anglo American in an all-share deal valuing the mining group at GBP31.1 billion.
Chambers reiterated that the BHP offer was "opportunistic" and "highly unattractive". Anglo American's board formally rejected this offer last Friday.
The Anglo American chair said 2023 was a "more difficult" year, not least due to geopolitical and economic headwinds, and their effect on platinum group metals and diamonds revenues, as well as a number of operational constraints relating to third party logistics, permitting delays and the need to catch up with mine planning after the disruptions of the pandemic.
"This resulted in a negative total shareholder return for the year," he said.
Anglo American released its financial results for 2023 late in February. It slashed the final dividend to 41 US cents from 74 cents, with the total payout more than halving to 96 cents from USD1.98.
Average market prices for its basket of products decreased by 13% compared to 2022, dragging down earnings before interest, taxes, depreciation and amortisation.
Underlying Ebitda slumped 31% to USD9.95 billion from USD14.49 billion, also reflecting a 4% unit cost increase.
Shares in Anglo American were down 4.5% at 2,626.00 pence on Tuesday in London, while its Johannesburg shares were 0.3% lower at ZAR619.95.
By Artwell Dlamini, Alliance News reporter
Comments and questions to newsroom@alliancenews.com
Copyright 2024 Alliance News Ltd. All Rights Reserved.
Anglo American (AAL)
BHP Group (BHP)