The chief executive of embattled miner Anglo American has today said a “value over volume approach” will help his firm get back on track after profits plummeted last year.
The company’s full-year accounts for 2023, released this morning, showed earnings before interest, taxes, depreciation, and amortisation (EBITDA) of $10bn (£7.95bn) for the year – a 31 per cent fall from last year.
“There is no doubt that while the immediate macro picture presents some challenges for our platinum group metals and diamonds businesses, the demand trends for metals and minerals have rarely looked better,” said Anglo American’s chief executive Duncan Wanblad.
“We are focused on reducing complexities and continue to manage our assets, capital and portfolio dynamically and for value.”
Wanblad, who has been in the job a little under two years during which time the firm’s stock has fallen around 50 per cent, said the company’s performance was knocked by a $5.5bn (£4.3bn) revenue impact from under-performance across its platinum group metals division and the company’s struggling diamond unit De Beers.
Anglo wrote down the value of its De Beers stake by $1.6bn (£1.3bn)
The company reported a 13 per cent “lower product basket price” referring to lower commodity prices and a four per cent increase in operating costs. These headwinds were offset by volume growth of two per cent. Net debt increased to $10.6bn (£8.5bn) reflecting an investment boom.
The group reported a final dividend per share of 41 cents (32p), a 45 per cent climb down, while the total dividend per share dropped 52 per cent to $0.96 (£0.76).
Deaths at mining operations missed their target of zero, rising to three from last year’s two incidences.
Shares in the company were up 0.9 per cent in early morning trading.
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