“Our focus is on unlocking the very significant additional potential that we see within the business ‒ and to do it safely and responsibly.” Mark Cutifani, CE of Anglo American.
“We are building on the improvements we have embedded across our business and benefiting from our diversification as stronger prices for certain products more than offset price weaknesses elsewhere, generating a 19% increase in underlying EBITDA to $5.5 billion and a 22% ROCE.
“The strength of Anglo American’s balance sheet and disciplined capital allocation support our investment in highly attractive organic growth while delivering a 27% dividend increase, in line with our 40% payout ratio, and our intention to return up to $1 billion through a share buyback,” he continues.
“Our determination to reach and sustain zero harm is our most pressing challenge. No degree of financial performance is worth a life, however, and in the first six months of 2019, regrettably three of our colleagues died in workplace safety incidents, two of which were vehicle related.
“Two additional fatal transport incidents in Chile in late June and early July caused the loss of ten of our colleagues and are being urgently investigated.
“The safety of our people ‒ at work or travelling to and from home ‒ is paramount to Anglo American and we have instructed additional wide ranging measures, including with all those who provide transport services to us.
“Our focus on efficiency and productivity, driven by Anglo American’s Operating Model implementation, is continuing to deliver improvements. Compared to 2012, our productivity per employee more than doubled, driving a 16 point increase in Mining EBITDA margin to 46% and placing us amongst the very best in the industry.
“We expect our targeted cost and volume benefit for 2019 ‒ adjusted to $0.4 billion to reflect our decision to pull back production at De Beers ‒ to come through in the second half of the year, building upon the $4.6 billion of annual underlying EBITDA improvement delivered since 2012. And looking ahead, we are committed to delivering the additional $3-4 billion annual underlying EBITDA run-rate improvement by 2022, relative to 2017.
“Anglo American is a resilient and highly competitive business with a clear asset-led strategy. Our focus is on unlocking the very significant additional potential that we see within the business ‒ and to do it safely and responsibly.
“Our world class portfolio benefits from a range of high margin, high return, fast payback organic growth options, sequenced over time, particularly in those products that will supply a cleaner, more electrified world and that satisfy the consumer led demands of a fast-growing global middle class,” concludes Cutifani.