Resilient Anglo American and robust demand deliver profit of $9.8 billion

LONDON – The resilience of Anglo American diversified business, following the operational disruptions of the first half and benefiting from strong metals prices in the latter months, generated underlying EBITDA of $9.8 billion, with an increased mining EBITDA margin of 43%.

Anglo American is delivering strong cash returns, investing in value-adding growth and maintaining its strong balance sheet, resulting in a 17% ROCE and an attractive Total Shareholder Return of 16.2% for the year.

Mark Cutifani, Chief Executive of Anglo American, said: “Our balanced investment programme is driving material business improvement, while also delivering margin-enhancing and sector leading volume growth of 20-25% over the next three to five years that includes first copper production from Quellaveco in 2022.

“Looking further out, we benefit from a sequence of high returning growth options, mainly in copper, PGMs, and now also crop nutrients. Our business is increasingly positioned to supply those products that are fundamental to enabling a low carbon economy and catering to global consumer demand trends. Combined with our integrated approach to technology and sustainability – also helping us reach carbon neutrality across our operations by 2040 – we are well positioned to meet the expectations of our full breadth of stakeholders.”

Financial highlights for the year ended 31 December 2020:

• Generated underlying EBITDA of $9.8 billion (2019: $10.0 billion)
• Profit attributable to equity shareholders of $2.1 billion (2019: $3.5 billion)
• Net debt of $5.6 billion (0.6x underlying EBITDA), reflecting investment in growth, largely offset by H2 cash flow
• Investing in high quality growth, including Quellaveco (copper) and Woodsmith (low carbon fertiliser)
• Good progress towards exiting remaining thermal coal operations in South Africa
• Committed to 30% net GHG reduction by 2030 and carbon neutrality across operations by 2040

Anglo American is a leading global mining company and its products are the essential ingredients in almost every aspect of modern life.