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17 February 2012

2011 Annual results

Anglo American announced its 2011 annual results at 0700 GMT on Friday 17 February.

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  • Record Group operating profit of $11.1 billion
  • $5.1 billion acquisition of up to 40% interest in De Beers – unique opportunity to consolidate control of the world’s leading diamond company
  • Los Bronces 200 ktpa copper expansion – first production in October 2011
  • Expect to approve $16 billion of projects over next three years
  • Kumba Iron Ore record export sales volumes of 37.1 Mt
  • Acquisition of 25.17% minorities in Peace River Coal – 100% ownership of high quality one billion tonne metallurgical coal resource
  • Newly commissioned and approved projects to deliver 35% volume growth by 2014
  • Exploration discoveries replenishing world class resource base across copper, nickel, PGMs – Sakatti discovery in Finland a significant grassroots exploration success
  • Record underlying earnings of $6.1 billion and underlying EPS of $5.06, a 23% increase
  • Final dividend increased by 15% to 46 US cents per share, bringing total dividends for the year to 74 US cents per share, a 14% increase
  • $5.4 billion sale of a minority 24.5% interest in Anglo American Sur copper assets – highlights value and quality of asset base
  • Net debt reduced to $1.4 billion at 31 December 2011

Despite short term uncertainty persisting in the global economy, particularly in Europe, the longer term outlook for Anglo American’s diversified mix of commodities remains strong. Sustained growth in the emerging economies should underpin robust demand for commodities, albeit with a degree of short term volatility, while the signs of economic recovery and stimulus in the US should provide a further fillip.

Rapid ‘catch-up’ in living standards, notably in China and India, combined with a medium term need for infrastructure replacement in the developed countries, present an attractive proposition for the early cycle commodities. Over time the considerable scope for an expanding middle class in many emerging economies should boost consumption, which positions Anglo American well due to its breadth of unique mid to late cycle exposure from copper and nickel to platinum and diamonds.

Prices for Anglo American’s commodities are expected to be robust as widespread supply constraints and the challenges producers face in bringing new supply into production will lead to increasing capital intensity and tight market fundamentals. Costs are likely to continue to be affected by strong producer currencies and increasing prices for key inputs.

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Conference Call

To join the 2011 annual results conference call, please dial the relevant number below and enter the passcode:
 
UK Freephone:
0800 783 0906
SA Freephone:
0800 166 515

International direct:
+44 1296 480 100
Participant passcode:
174 228#