Anglo-American PLC update
Sign up for myFT Daily Digest and be the first to learn about Anglo American PLC news.
After soaring commodity prices helped the mining company record the best half-year profit in 104 years of history, Anglo American will return $4.1 billion to shareholders
The London-listed company reported that the pre-tax profit for the six months ended June was US$10.1 billion, compared with US$1.7 billion in the same period last year and revenue of US$21.7 billion. It announced a dividend of $3.1 billion and said it would buy back $1 billion of stock.
The result is ahead of Anglo American’s performance in 2020, when it generated $6 billion in pre-tax profits and paid $1.25 billion in dividends. Steelmaking raw materials iron ore and Anglo’s platinum group metals division are the main profit drivers.
CEO Mark Cutifani said: “Spurred by the stimulus measures adopted by major economies, as the economy begins to regain lost ground, demand for many of our products will be strong and prices will rise in the first six months of 2021. ”
Anglo American was founded by Ernest Oppenheimer in South Africa in 1917 and still owns Big footprint in the countryIt owns De Beers, a diamond producer, and many large copper mines in South America.
With the help of China’s strong demand and the recovery of large economies, the mining industry has emerged from the coronavirus pandemic and is financially sound. From copper to rhodium, commodity prices have soared in the past year, bringing huge windfalls to major producers.
Based on output and commodity price forecasts, PricewaterhouseCoopers predicts that the after-tax profits of the world’s top 40 mining companies will reach US$118 billion in 2021, an increase of 68% over the previous year.
Therefore, diversified miners will become one of the largest sources of income for European investors this year.On Wednesday, Rio Tinto said it would pay $9.1 billion semi-annual dividend Because it profited from soaring iron ore prices.
Brazilian iron ore producer Overnight Vale reports a 600% increase in net income in the second quarter to US$7.6 billion
Anglo American is one of the few large mining companies that are expected to achieve production growth. A large copper mine in Peru will be put into operation next year. It is also developing fertilizer mines in a national park in northern England.
Woodsmith involved sinking two 1.5-kilometer long shafts to obtain a huge deposit of polyhalite-a mineral that can be used as fertilizer-and constructing a 37-kilometer underground tunnel to transport the material to Tisai A port in Germany.
In the first six months of this year, Anglo American withdrew from thermal coal, split its South African mine into a new company, and sold its shares in the Columbia mine to Glencore.