Anglo American, a renowned multinational mining company, released its financial results for the first half of the year. Despite challenges, the company showcased notable achievements.
Sales Performance
During the half-year period, Anglo American recorded sales of $15.67 billion, slightly lower than the $18.11 billion generated in the first half of 2022. Notably, the company surpassed the market-consensus estimate of $15.45 billion compiled by FactSet.
Underlying Earnings
Anglo American’s underlying earnings before interest, taxes, depreciation, and amortization stood at $5.11 billion, a decrease from the $8.70 billion reported in the previous year. While this figure fell short of the market views of $5.28 billion according to a FactSet poll, it highlights the company’s resilience amid a challenging economic landscape.
Key Highlights
CAPEX Guidance
The FTSE 100-listed diversified mining group revised its full-year capital-expenditure guidance downward, now expecting it to reach the lower end of the previous range of $6.0 billion to $6.5 billion. This adjustment primarily stems from decreased capital expenditure on the Quellaveco copper and Woodsmith crop-nutrients projects.
Operational Performance
Anglo American witnessed a significant increase in total copper production, rising by 42% to 387,200 metric tons. The new Quellaveco mine played a pivotal role in this accomplishment, contributing 137,800 tons and achieving commercial production levels in June. Iron ore and steelmaking coal production also experienced growth, while nickel and manganese output remained consistent with the prior year. However, platinum group metals and diamond production recorded a decrease.
These notable performances demonstrate Anglo American’s commitment to adapt to changing market dynamics while maintaining operational excellence.
