HomeBase MetalsAnglo American profits up

Anglo American profits up

Modikwa platinum mine
– one of Anglo
American’s South African
London, England — MININGREVIEW.COM — 01 August 2008 – International mining giant Anglo American Plc posted record earnings and operating profits for the first six months of 2008, and is expecting an even stronger second half of the year in terms of operational performance.

Releasing its interim results here, the company revealed a record group operating profit of US $6.2 billion (almost R50 billion), with operating profit from core operations up 30% to US$6.0 billion (R48 billion). Total group profit for the period attributable to equity shareholders was up 27% at US$4.3 billion (almost R34 billion).

The results release also showed the highest ever total group underlying earnings of US$3.5 billion (close to R28 billion) – an increase of 14% – as well as a 33% increase in total group underlying earnings per share to $2.90.

It pointed out that these results stemmed from strong performances from ferrous metals, coal, base metals and diamonds, with increased production of iron ore, coal and copper.

Several factors are expected to contribute to the optimistic outlook for the full year, resulting from an anticipated stronger second half. These include: having the executive team in place, including new CEOs for Anglo Platinum, Anglo Coal, Kumba Iron Ore and Anglo American South Africa; having new order mining right conversions awarded across Anglo American’s South African mining businesses; and the implementation of solutions to power supply constraints in South Africa.

Anglo American also revealed that its US$45 billion (R350 billion) project pipeline included an increase to US$15 billion (R120 billion) in approved projects in order to deliver substantial volume growth in the most attractive commodity segments. This included significant new iron ore and coal production on stream in South Africa in 2008.