Skip Header
Important information: The value of investments can go down as well as up so you may get back less than you invest. Investors should note that the views expressed may no longer be current and may have already been acted upon. This is a third-party news feed and may not reflect Fidelity’s views.

Anglo American slashes dividend as annual profits sink

(Sharecast News) - Mining group Anglo American has slashed its annual dividend by a half after seeing profits plunge in 2023 on the back of impairments and downturns in the platinum and diamond markets. Anglo said it is now planning on cutting annual run rate costs by $1bn and capital spend by $1.6bn over the next three years, while also cutting out unprofitable volumes, as it streamlines in the face of high cost pressures.

The company reported underlying EBITDA for 2023 of $9.96bn, down 31% on the previous year, as 2% production growth was outweighed by a drop in the mining EBITDA margin - from 47% to 39% - along with a 13% lower product basket price and a 4% unit cost increase.

Anglo also registered a $1.6bn write-down of the book value of diamond business De Beers, mainly related to goodwill, due to its updated assessment of global GDP growth and consumer demand.

The company also booked a $0.8bn impairment for its nickel business Barro Alto in 2023 following revisions to the pricing outlook and the long-term cost profile of the asset.

Profit attributable to equity shareholders slumped to just $283m, from $4.51bn in 2022, while revenues fell 13% to $30.65bn.

"2023 saw us increase production by 2% and contain the effect of high inflation on our costs, while facing a cyclical downturn in PGMs and diamonds," said chief executive Duncan Wanblad.

The company declared a final dividend of 41 cents per share, down 45% year-on-year, resulting in a total dividend of 96 cents. down from 198 cents.

"There is no doubt that while the immediate macro picture presents some challenges for our PGMs and diamonds businesses, the demand trends for metals and minerals have rarely looked better," Wanblad said. "We are focused on reducing complexities and continue to manage our assets, capital and portfolio dynamically and for value."

Share this article

Related Sharecast Articles

Jubilee Metals starts processing copper feed material at Roan
(Sharecast News) - Jubilee Metals Group announced on Friday that its Roan concentrator facility in Zambia had started processing high-grade copper feed material, marking a key step in its accelerated production plan.
Shuka Minerals progressing proposed acquisition of Kabwe Mine
(Sharecast News) - Shuka Minerals updated the market on its proposed acquisition of Leopard Exploration and Mining and the Kabwe Zinc Mine in Zambia on Friday, following the signing of a conditional share purchase agreement in December.
Losses at Moderna miss estimates, shares ease
(Sharecast News) - Shares in Moderna came under pressure on Friday, after fourth-quarter losses at the US biotech were bigger than expected.
Helical joint venture secures funding for City development
(Sharecast News) - Helical announced on Friday that, in joint venture with Places for London, it had secured a £125m development financing facility from HSBC to fund the construction of 10 King William Street, an over-station office scheme above Bank station in the City of London.

Important information: This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to one of Fidelity’s advisers or an authorised financial adviser of your choice. When you are thinking about investing in shares, it’s generally a good idea to consider holding them alongside other investments in a diversified portfolio of assets. Past performance is not a reliable indicator of future returns.

Award-winning online share dealing

Search, compare and select from thousands of shares.

Expert insights into investing your money

Our team of experts explore the world of share dealing.