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2018 Interim Results

26 July, 2018

Continued performance improvement supports 11% underlying EBITDA increase to $4.6 billion

Mark Cutifani, Chief Executive of Anglo American, said: “We have delivered another strong performance during the first half, with an 11% increase in underlying EBITDA to $4.6 billion and a 19% return on capital employed. We have also made good progress against our disciplined capital allocation objectives, strengthening the balance sheet with net debt down to $4 billion, delivering an increase in the dividend commensurate with earnings, and continuing to invest prudently across the business. This strong financial result derives from our consistent productivity improvements in the underlying operations and a stronger price environment for many of our products.

“We have continued to build on the significant productivity improvements of recent years, delivering a further two percentage point improvement(1) in the first six months of 2018. A 6% increase in copper equivalent production volumes(2) helped deliver $0.4 billion(3) of cost and volume improvements in the first half, out of the $0.8 billion targeted for the full year, against a backdrop of rising input cost inflation and the temporary suspension at Minas‑Rio.

“We see significant further potential to deliver enhanced returns from the portfolio, with our business model and relentless focus on innovation and business improvement resetting our performance benchmarks. As we now move forward to develop the world-class Quellaveco copper project in Peru, in conjunction with our partner Mitsubishi, we are excited about the opportunities we see across the business.”

Highlights – six months ended 30 June 2018

  • Reduced net debt* to $4 billion, an 11% reduction since end 2017 – 0.4x net debt / underlying EBITDA*
  • Generated underlying EBITDA* of $4.6 billion, an 11% increase, and $1.6 billion of attributable free cash flow*
  • Profit attributable to equity shareholders of $1.3 billion
  • Achieved cost and volume improvements of $0.4 billion(3) – on track for the full year
  • Minas-Rio pipeline inspection on track, with remedial work to be completed in Q4 2018, prior to restart
  • Increased interim dividend of $0.49 per share – 40% of first half underlying earnings*
Six months ended
US$ million, unless otherwise stated
30 June 2018 30 June 2017 Change
Underlying EBITDA* 4,577 4,116 11%
Underlying earnings* 1,565 1,536 2%
Profit attributable to equity shareholders of the Company 1,290 1,415 (9)%
Underlying earnings per share* ($) 1.23 1.19 3%
Earnings per share ($) 1.02 1.09 (6)%
Dividend per share ($) 0.49 0.48 2%
Group attributable ROCE* 19% 18% 6%

(1) Productivity indexed to 2012 benchmark.
(2) Excludes the impact of the suspension of operations at Minas-Rio. Including this, the increase is 3%.
(3) Excludes the impact of the suspension of operations at Minas-Rio.

Words with this symbol * are defined as Alternative Performance Measures (‘APMs’). For more information on the APMs used by the Group, including definitions, please refer to the Alternative Performance Measures section of the Group’s Annual Report for the year ended 31 December 2017.

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For further information, please contact:

Media Investors
UK UK
James Wyatt-Tilby Paul Galloway
Email: [email protected] Email: [email protected]
Tel: +44 (0)20 7968 8759 Tel: +44 (0)20 7968 8718
Marcelo Esquivel Robert Greenberg
Email: [email protected] Email:[email protected]
Tel: +44 (0)20 7968 8891 Tel: +44 (0)20 7968 2124
South Africa Sheena Jethwa
Pranill Ramchander Email: [email protected]
Email: [email protected] Tel: +44 (0)20 7968 8680
Tel: +27 (0)11 638 2592
Ann Farndell
Email: [email protected]
Tel: +27 (0)11 638 2786

Notes to editors:

Anglo American is a global diversified mining business and our products are the essential ingredients in almost every aspect of modern life. Our portfolio of world-class competitive mining operations and undeveloped resources provides the metals and minerals to meet the growing consumer-driven demands of the world’s developed and maturing economies. With our people at the heart of our business, we use innovative practices and the latest technologies to discover new resources and mine, process, move and market our products to our customers around the world.

As a responsible miner – of diamonds (through De Beers), copper, platinum and other precious metals, iron ore, coal and nickel – we are the custodians of what are precious natural resources. We work together with our key partners and stakeholders to unlock the sustainable value that those resources represent for our shareholders, the communities and countries in which we operate and for society at large. Anglo American is re-imagining mining to improve people’s lives.

www.angloamerican.com