Portfolio quality, diversification and growth support underlying EBITDA of $14.5 billion
Financial highlights for the year ended 31 December 2022
- Underlying EBITDA* of $14.5 billion
- Profit attributable to equity shareholders of $4.5 billion
- Net debt* of $6.9 billion (<0.5 x underlying EBITDA): cash generation offset by investment in value-adding growth
- Woodsmith impaired by $1.7 billion due to extended development schedule and budget, designed to deliver maximum returns over long life of asset
- Quellaveco commissioned on time and on budget: multi-decade copper operation ramping up
- $0.9 billion final dividend, equal to $0.74 per share, consistent with our 40% payout policy.
Duncan Wanblad, Chief Executive of Anglo American, said: “Anglo American offers a differentiated investment proposition of portfolio quality, diversification and growth, positioning us strongly for the structurally attractive long term dynamics. Our unwavering focus is on driving consistent performance across our operations – which starts with the safety and health of our employees – and progress towards our full suite of sustainability ambitions, including our 2040 carbon neutral operations commitment.
“Safety always comes first as we strive to reach zero harm for every one of our people, every single day. While we continue to make progress on our long term safety journey and further develop our safety processes and procedures, we were deeply saddened to lose two colleagues at our managed operations during the year. We will not rest until zero harm is achieved and sustained across our business.
“We continued to feel the effects of dislocations in the global economy on our business in 2022 – in energy, and across supply chains and labour markets. Extreme weather has disrupted the lives of so many, with exceptional rainfall also setting back several of our operations, while the energy crisis caused policymakers to react to mitigate sharply higher inflation. With that backdrop, we built momentum during the year with our focus on regaining operational stability and targeted incremental performance improvement.
“Underlying EBITDA of $14.5 billion, a 30% decrease compared with the record achieved in 2021, reflects inflationary headwinds and higher energy prices combined with lower production volumes which, together, lifted our production costs amid dampened prices for many of our products. We delivered a return on capital employed of 30% – above our targeted 15% through-the-cycle return – and a mining EBITDA margin of 47%. Our commitment to capital discipline and to a strong and flexible balance sheet is paramount to remain resilient to the external environment and retain optionality for value-adding growth. Net debt increasing to $6.9 billion, or less than 0.5 x underlying EBITDA, reflects the growth investments we are making in line with our belief in the strong long term fundamentals. Our $0.9 billion final dividend of $0.74 per share is in line with our 40% payout policy.
“The fundamental demand picture for future-enabling metals and minerals – particularly those that are responsibly sourced with traceable provenance – is ever more compelling. Our new Quellaveco copper operation in Peru increases our global production base by 10%(1) and is the cornerstone of our value-adding growth potential of 25%(2) over the next decade, with further optionality beyond, from copper to crop nutrients. As most of the world’s major economies accelerate their decarbonisation efforts and as the global population increases and continues to urbanise, we aim to keep growing the value of our business into that demand.”
| Year ended |
31 December 2022 |
31 December 2021 |
Change |
| US$ million, unless otherwise stated |
| Revenue |
35,118 |
41,554 |
(15)% |
| Underlying EBITDA* |
14,495 |
20,634 |
(30)% |
| Mining EBITDA margin* |
47% |
56% |
|
| Attributable free cash flow* |
1,585 |
7,803 |
(80)% |
| Profit attributable to equity shareholders of the Company |
4,514 |
8,562 |
(47)% |
| Basic underlying earnings per share* ($) |
4.97 |
7.22 |
(31)% |
| Basic earnings per share ($) |
3.72 |
6.93 |
(46)% |
| Final dividend per share ($) |
0.74 |
1.18 |
(37)% |
| Interim dividend per share ($) |
1.24 |
1.71 |
(27)% |
| Additional returns per share ($) |
- |
2.10 |
n/a |
| Total dividend and buyback per share ($) |
1.98 |
4.99 |
(60)% |
| Group attributable ROCE* |
30% |
43% |
|
See page 2 for footnotes.Terms with this symbol * are defined as Alternative Performance Measures (APMs). For more information, refer to page 86 of the Preliminary Results PDF.
(1)Copper equivalent volume growth from 2022 baseline, pre the commissioning of Quellaveco.
(2)Copper equivalent production basis. Calculated including the equity share of De Beers’ production and using long term consensus parameters. It is normalised to reflect the demerger of the South Africa thermal coal operations and the sale of our interest in Cerrejón. Future production levels are indicative and subject to final approval.
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