Although Anglo American (AAL) revealed a $1.49bn (£961m) net loss in a year marred by industrial strife and falling commodity prices, the miner's management rewarded shareholders with a tasty dividend rise. Despite that, Anglo still faces unresolved labour problems in South Africa and depressed conditions in its key markets.
Faltering commodity prices knocked $3.9bn from Anglo's underlying operating profit (excluding accounting items and revaluations) which, overall, fell 44 per cent year on year to $6.2bn. A higher wage bill sliced $1bn from profits, too. Anglo's plight is highlighted by its platinum division's performance, which turned 2011's $890m profit into a $120m loss. Falling demand and a 21 per cent hike in cash costs were to blame. Anglo American Platinum (Amplats) remains in talks with African National Congress officials in a bid to head off more wildcat strikes after announcing its intention to close two mines and cut around 14,000 jobs.
A reduced contribution from Anglo's copper, metallurgical and thermal coal segments didn't help, either. While a 25 per cent fall in De Beers' underlying profit was only partially offset by Anglo's increased stake in the operation. Bottom-line earnings, meanwhile, were hit by $4.6bn in impairments - predominantly linked to the troubled Minas-Rio iron ore project in Brazil - and it's unclear whether those issues have been resolved.
Prior to these figures, JPMorgan Cazenove expected EPS of 213¢ for 2013 (226¢ in 2012).
| ANGLO AMERICAN (AAL) | ||||
|---|---|---|---|---|
| ORD PRICE: | 2,068p | MARKET VALUE: | £28.8bn | |
| TOUCH: | 2,067-2,070p | 12-MONTH HIGH: | 2,800p | LOW: 1,662p |
| DIVIDEND YIELD: | 2.7% | PE RATIO: | NA | |
| NET ASSET VALUE: | 2,707¢ | NET DEBT: | 20% | |
| Year to 31 Dec | Turnover ($bn) | Pre-tax profit ($bn) | Earnings per share (¢) | Dividend per share (¢) |
|---|---|---|---|---|
| 2008 | 26.3 | 8.57 | 434 | 44.0 |
| 2009 | 20.9 | 4.03 | 202 | nil |
| 2010 | 28.0 | 10.9 | 543 | 65.0 |
| 2011 | 30.6 | 10.8 | 510 | 74.0 |
| 2012 | 28.8 | -0.24 | -119 | 85.0 |
| % change | -6 | - | - | +15 |
Ex-div: 20 Mar Payment: 25 Apr £1=$1.55 | ||||
