Anglo American to Hone Focus on Diamonds, PGMs and Copper

February 16, 2016

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Anglo American plc (LSE:AAL) released its preliminary 2015 results, and they show that it incurred a loss attributable to equity shareholders of $5.6 billion, up significantly from $2.5 billion in 2014.

Group underlying EBITDA came in at $2.2 billion, down 55 percent from 2014 on the back of “sharply weaker commodity prices.” Underlying earnings were $827 million, while group revenue came in at $23 billion.

Commenting on the results, Chief Executive Mark Cutifani said:

The global economic environment and its impact on prices have presented the industry with significant challenges during 2015. Against the strong headwinds of a 24% decrease in the basket price of our products for the year as a whole, our ongoing intense focus on operational costs and productivity delivered a $1.3 billion EBIT benefit in the year, providing some mitigation. Overall, our copper equivalent unit costs reduced by a further 16% in US dollar terms, representing a 27% total reduction since 2012.

Anglo also announced “detailed and wide-ranging measures that will sustainably improve cash flows and materially reduce net debt.” The plan involves honing the company’s focus on its “core portfolio” of diamond, PGMs and copper assets.

Highlights are as follows:

Focus on De Beers, PGMs and copper

  • Materially streamlined core portfolio of 16 assets
  • Improved competitive profile – advantaged cost positions, world class ore bodies and balance of geographic and end markets
  • Asset quality, mineral endowment options and scale to support future opportunities
  • Differentiated, premium positioning for expanding consumer product-based markets

Portfolio transformation under way

  • Nickel, Niobium and Phosphates, and Moranbah and Grosvenor metallurgical coal disposal processes under way
  • Further progress made on other previously announced disposal processes, including certain platinum and thermal and metallurgical coal operations in South Africa and Australia

Click here to read more about the company’s 2015 results.
Click here to read more about the company’s portfolio adjustments.

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Category: Diamond