Anglo American shareholders give overwhelming backing to revised exec pay policy

TO GO WITH AFP STORY 'CHILE-COPPER-CHINA
Anglo American's first-quarter production results were broadly in line with expectations (Source: Getty)

The pay of top executives at Anglo American is set to be shaken up after shareholders today gave a new remuneration policy the thumbs up.

Provisional results posted at the end of meeting indicated 95 per cent of shareholders supported Anglo American's remuneration report.

Meanwhile 92 per cent of investors were in favour of an updated pay policy to cap how much senior executives can from long-term incentive plans (LTIP). The cap will apply to LTIP awards made in 2014, 2015 and 2016.

The support is in stark contrast with 42 per cent vote against pay policy last year. Anglo American boss Mark Cutifani said on the run-up to the 2017 AGM he would rather take a pay cut and please shareholders than continue with the policy that frustrated many of them in 2016.

At its AGM, the mining giant set up its vision for the future, which also included a restoration of its dividend by the end of the year.

In addition, the mine revealed overall production jumped nine per cent in the first quarter of 2017 for mining giant Anglo American, but copper output disappointed.

De Beers' diamond production rose eight per cent to 7.4m carats, compared with 6.9m the previous year, due to the new Gahcho Kue mine in Canada as well as improved trading conditions, and sales volumes increased to 14.1m carats compared with 8.1m carats in 2016.

Copper output fell three per cent to 142,600 tonnes due to poorer grades and the temporary suspension of mining operations at El Soldado, which resulted in a production loss of around 3,000 tonnes.

However, full-year copper guidance was unchanged at 570,000 to 600,000 tonnes.

Read more: Copper continues to drag on Anglo American

Chief executive Mark Cutifani said the company's ongoing portfolio refinements are "further strengthening Anglo American's resilience and competitive position".

During the commodity price downturn, Anglo narrowed its focus to a group of core commodities: diamonds, platinum and copper. After it returned to profit in 2016, the group said it would no longer be forced to sell assets.

Coal guidance was unchanged, but after production in Australia was impacted by Cyclone Debbie, Anglo said an impact on second quarter sales volumes is expected.

Yuen Low, analyst at Shore Capital, said production was "essentially in line with expectations, with full-year guidance mostly reiterated".

Read more: Anglo American will sell its thermal coal business in South Africa

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