Robust copper prices during the period helped underpin Anglo American's profits and a return to the dividend list. The average copper price grew 76 per cent in the year to end-June to 323 cents per pound on the back of stock-piling by Chinese companies and the effects of global economic stimulus efforts.
Anglo's copper profits alone were 96 per cent higher than a year ago at $1.18bn, while the iron ore and manganese operations were the next best performers - combined, they delivered a 126 per cent profit increase to $1.63bn. Overall, group operating profit rose 104 per cent year-on-year to $4.23bn, but chief executive Cynthia Carroll still sounded cautious on the immediate economic outlook. She expects long-term growth in China and India to drive commodity demand.
Anglo didn't have everything its own way, though. It had to chip in $450m (£288m) to a fund-raising at diamond-mining associate De Beers, and it is struggling to get its vast (and vastly expensive) Minas Rio iron ore project up and running in Brazil. The need to gain environmental permits has pushed the mine's completion date back to 2013, while costs have increased by some $210m.
Evolution Securities expects full-year pre-tax profits of $8.14bn, with EPS of 406¢ (2009: $4.68bn/EPS 210¢).
ANGLO AMERICAN (AAL) | ||||
|---|---|---|---|---|
| ORD PRICE: | 2,525p | MARKET VALUE: | £ 33.3bn | |
| TOUCH: | 2,524-2,526p | 12-MONTH HIGH: | 3,016p | LOW: 1,778p |
| DIVIDEND YIELD: | 0.6% | PE RATIO: | 31 | |
| NET ASSET VALUE: | 2075¢* | NET DEBT: | 36% | |
| Half-year to 30 Jun | Turnover ($bn) | Pre-tax profit ($bn) | Earnings per share (¢) | Net div per share (¢) |
|---|---|---|---|---|
| 2009 | 9.29 | 3.63 | 247 | nil |
| 2010 | 12.6 | 3.90 | 171 | 25.0 |
| % change | +36 | +7 | -31 | - |
Ex-div:18 Aug Payment:16 Sep *Includes intangible assets of $2.55bn, or 193c a share £1=$1.56 | ||||
