Anglo American Preliminary Results 2021
24 February, 2022
Strong market dynamics and operational performance drive underlying EBITDA of $20.6 billion
Financial highlights for the year ended 31 December 2021
- Underlying EBITDA* of $20.6 billion: strong demand and prices, and resilient operational performance
- Profit attributable to equity shareholders of $8.6 billion
- Net debt* of $3.8 billion (0.2x underlying EBITDA): strong cash generation partially offset by investment in growth
- $6.2 billion shareholder return: capital discipline and commitment to return excess cash
- $2.1 billion proposed final dividend, equal to $1.18 per share final dividend, consistent with our 40% payout policy, and $0.50 per share special dividend
- $4.1 billion return announced at half year, including $1.0 billion special dividend and $1.0 billion buyback
- Exit from thermal coal operations completed
Mark Cutifani, Chief Executive of Anglo American, said: “In a year of two distinct halves, we recorded strong demand and prices for many products as economies recouped lost ground, spurred by government stimulus. Copper and PGMs – essential to the global decarbonisation imperative – and premium quality iron ore for greener steelmaking, supported by an improving market for diamonds, all contributed to a record financial performance, generating underlying EBITDA of $20.6 billion.
“We generated attributable free cash flow of $7.8 billion due largely to a strong price environment in the first half, which moderated in the second half. Our return on capital employed of 43% was well above our targeted 15% through-the-cycle return, as it should be in times of strong pricing, and we increased our mining EBITDA margin to 56%. We are resolutely committed to capital discipline and to maintaining a strong and flexible balance sheet. At the end of 2021, net debt of $3.8 billion, or 0.2x underlying EBITDA, reflects the strong cash generation of the business, partially offset by our investments in growth. The proposed final dividend of $1.18 per share, in line with our 40% payout policy, in addition to a special dividend of $0.50 per share, will bring our total return to shareholders in respect of 2021 to $6.2 billion (including our share buyback), equal to $4.99 per share.
“We continue to make progress in reducing fatal incidents and our broader safety processes and procedures. Sadly, however, we still lost one colleague in a vehicle incident in Peru. Our total injury frequency rate tracked up marginally, after multiple years of progressive improvement, reflecting the changed operating configurations necessary to manage Covid-19. Our health focus remains on helping keep our people protected from Covid-19. In many ways, the pandemic has proven more challenging in 2021, particularly where vaccination roll-outs have been slower and uptake lower. We have provided significant monetary and other support to accelerate vaccination rates, including by using our own health facilities and encouraging vaccination at the earliest opportunity.
“Our balanced investments are driving margin-enhancing volume growth of 35%(1) over the next decade, including copper from Quellaveco, due to start up mid-year. The large majority of our output and investment capital is focused on future-enabling products – metals and minerals essential for decarbonisation and to meet global consumer demand. Through our integrated technology and sustainability programme, we are well positioned to run the business safely and sustainably, further enhance our competitive position and – disciplined with our capital – deliver value-adding growth as a foundation for future returns.”
| Year ended | 31 December 2021 | 31 December 2020 | Change |
|---|---|---|---|
| US$ million, unless otherwise stated | |||
| Revenue(2) | 41,554 | 25,447 | 63 % |
| Underlying EBITDA* | 20,634 | 9,802 | 111 % |
| Mining EBITDA margin* | 56 % | 43 % | |
| Attributable free cash flow* | 7,803 | 1,209 | |
| Profit attributable to equity shareholders of the Company | 8,562 | 2,089 | 310 % |
| Basic underlying earnings per share* ($) | 7.22 | 2.53 | 185 % |
| Basic earnings per share ($) | 6.93 | 1.69 | 310 % |
| Final dividend per share ($) | 1.18 | 0.72 | 64 % |
| Final special dividend per share ($) | 0.50 | — | |
| Interim and special dividend per share ($) | 2.51 | 0.28 | |
| Share buyback per share ($) | 0.80 | — | |
| Total dividend and buyback per share ($) | 4.99 | 1.00 | 399 % |
| Group attributable ROCE* | 43 % | 17 % |
Terms with this symbol * are defined as Alternative Performance Measures (APMs). For more information refer to page 83 of the Preliminary Results PDF.
(1) Copper equivalent volume growth vs. 2021 copper equivalent production.
(2) The comparative figure for 2020 has been restated. See note 2 to the Condensed financial statements for further details.