Mining giant Anglo American reported record full year earnings and prepared to more than triple its annual payout to shareholders, as it felt the lift of soaring commodity prices which have boosted profits across the sector.
The firm’s earnings before interest, tax, depreciation and amortisation (EBITDA) jumped 111 per cent to $20.6 billion, more than doubling $9.8bn in 2020, with profits attributable to shareholders rising to $8.6bn.
Bosses are ready to dish out bumper payouts to shareholders with $2.1bn set aside as a final dividend, equal to $1.18 per share, after already dishing out $4.1bn announced at half year, including $1.0 billion special dividend and $1.0 billion buyback.
The payouts follow a surge in revenues of 63 per cent to $41.55 bn from $25.45bn, just below analysts’ expectations of $42.3bn.
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 Platinum group metals (PGM) – 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.”
The firm said it had also now completed its exit from thermal coal as it pushed towards decarbonisation.
Outlook for 2022 is positive, bosses said, with the firm’s investments targeting margin growth of 35 per cent in the next decade.
The firm also said it was planning to ramp up investment in its Woodsmith project, near Whitby in Yorkshire.
Mark Cutifani revealed that the company invested nearly £390m in the project last year, with the firm expected to invest a further £440m this year.
Shares in the firm rose one per cent this morning after the reports.