Global miner Anglo American achieved a strong operational and cost performance for the year ended December 31, with $1.3-billion of costs removed on a run rate basis and a further $500-million to come by the end of this year.

The group is also making good progress with its portfolio simplification, CE Duncan Wanblad says.

“We are fast transforming Anglo American into a far higher margin and more valuable mining company focused on exceptional copper, premium iron-ore and crop nutrients assets and significant growth optionality,” he adds.

The sale of Anglo’s steelmaking coal business was agreed for up to $4.8-billion in gross cash proceeds. The group has this week also agreed to the sale of its nickel business for a cash consideration of up to $500-million.

The demerger of Anglo American Platinum (Amplats) is expected in June. Anglo intends to initially retain a 19.9% interest in Amplats to help manage flowback post the demerger, with a responsible exit targeted over time.

All of these are expected to deliver a step-change in the group’s balance sheet flexibility, Wanblad avers.

Wanblad notes that the work to separate De Beers is also well under way, with action taken to strengthen cash flow in the near term and position De Beers for long-term success and value realisation.

Owing to prevailing diamond market conditions, the group has reduced its carrying value of De Beers by $2.9-billion.

“In terms of growth, we are progressing our considerable pipeline of high-quality options across our portfolio. This is well-sequenced and largely brownfield growth that makes best use of our proven technical and sustainability capabilities, our project delivery record and our reputation as a responsible mining company,” Wanblad says.

“We have moved at pace to set up Anglo American as a highly attractive and differentiated value proposition for the long term, offering strong cash generation to support sustainable shareholder returns and the capabilities and longstanding relationship networks to deliver our full value and growth potential,” he adds.

FINANCIAL
Underlying earnings before interest, taxes, depreciation and amortisation for the period was $8.5-billion, with the margin stable at 30%, despite 10% lower prices and challenging rough diamond trading conditions, supported by flat unit costs and other major cost efficiencies.

The group’s focus on cash conversion saw sustaining attributable free cash flow of $1.7-billion, compared with $100-million in 2023.

The loss attributable to equity shareholders was $3.1-billion – recognising net impairments of $3.8-billion.

Net debt was flat at $10.6-billion.

Anglo posted $800-million in full-year dividends for the full year, equal to $0.64 a share, consistent with the group’s 40% payout policy.

Basic headline earnings a share were $0.72, compared with $2.06 in 2023.