Anglo American, a multinational mining company, announced a decline in earnings for the first half of this year due to macro headwinds that impacted the results. However, the company remains confident in meeting its full-year production targets.
In the first six months of 2022, Anglo American achieved underlying earnings before interest, taxes, depreciation, and amortization (EBITDA) of $5.11 billion, compared to $8.70 billion in the same period last year. The decrease was primarily attributed to weaker product prices and a 1% increase in unit costs.
This figure fell short of market expectations, which were estimated at $5.28 billion based on an analyst poll from FactSet. Despite this, revenue did not experience a significant decline, reaching $15.67 billion compared to $18.11 billion in the previous year, surpassing the consensus of $15.45 billion.
Net profit also saw a decline of 66%, reaching $1.26 billion, compared to the expected $1.455 billion. Earnings per share followed suit, falling from $3.30 to $1.04, while the consensus predicted a little higher at $1.30.
In line with its payout policy, Anglo American announced an interim dividend of $0.55.
The company’s new Peruvian copper mine, Quellaveco, is progressing well and is expected to produce between 310,000 and 350,000 metric tons of copper in 2023.
“We remain committed to delivering on our full-year production guidance, with a significant increase in volumes anticipated for the second half,” stated Chief Executive Duncan Wanblad.
