Anglo American: further performance improvements and growth outlook
11 December, 2018
Anglo American plc (“Anglo American” or “the Group”) is today hosting a briefing for investors and analysts to provide an update on the Group’s current and projected operational and financial performance. The briefing will cover guidance for the next three financial years, including capital expenditure, and an update on Anglo American’s broad range of organic growth options, which are subject to ongoing strict capital allocation discipline.
Mark Cutifani, Chief Executive of Anglo American, said: “We have completely transformed the quality of our asset portfolio and our performance as a whole over the last five years. We have created a highly competitive business, with Anglo American amongst the very best in the industry in terms of margin. We see considerable further opportunity ahead and continue to target $3-4 billion of incremental annual EBITDA by 2022. This will come from a combination of meeting or surpassing industry best-practice equipment performance across our operations; volume growth from existing and new operations, such as Quellaveco; and the deployment of our FutureSmart Mining™ technologies and digitalisation. It is these technologies that will transform how we mine, process and market our products, providing the next step change in our performance.
“We have continued to improve our performance during 2018. We now expect production to be 2% above previous guidance and costs 5% below. We are also confident about the outlook, with production expected to increase by 3% in 2019, with cost inflation fully absorbed by our productivity and cost improvements. We expect a further 5% production increase in both 2020 and 2021. In the last three years, we have reduced net debt by more than $9 billion and paid almost $2 billion in dividends to our shareholders in the last 18 months. We are now well positioned to drive enhanced returns through our capital allocation options, maintaining a strong balance sheet while delivering attractive shareholder returns and value-adding disciplined growth.
“Anglo American’s portfolio spans the products and product qualities that will supply the needs of a cleaner, more electrified and richer world. We have a well sequenced range of high returning, quick payback growth options, from life extensions in diamonds and metallurgical coal, to growth across our copper, diamonds and met coal businesses in particular. Combined with our multi-stakeholder focus to create a truly sustainable business, we believe we are set to keep delivering on all fronts.”
The presentation which contains the details relating to the information referred to above is available on the Anglo American website at: www.angloamerican.com/investors/investor-presentations/2018