Anglo American says Covid-19 impacted group’s financial and operational performance
JOHANNESBURG - Anglo American plc, the JSE listed mining giant said Covid-19 had weighed heavily on the group's financial and operational performance during the six months ended June 2020.
“This year has been nothing like I have ever seen in my 43 years in mining,” chief executive Mark Cutifani told journalists earlier today.
Cutifani told journalists that the Covid-19 pandemic had materially impact production, with varying degrees of the lockdown being the main driver for the 11 percent the overall reduction in output.
Cutifani also reported a 16 percent decrease in revenue, following operational incidents at platinum group metal (PGMs) and Met Coal.
“These reductions were partially offset by strong performances from our Brazilian iron ore and Chilean copper operations. By the end of June, we were back at 90 percent capacity across the portfolio and the significant transformation of our underlying operational capabilities that has made the business more resilient helped to deliver $3.4 billion of underlying earnings before interest, taxes, depreciation, and amortization (EBITDA).
Revenue fell 16 percent to $12.47 billion during the six months to June after the force majeure incident at the company's processing plant in Rustenburg, and two incidents underground that affected Moranbah and Grosvenor, and longwall moves at Grosvenor and Grasstree.
“The first half of 2020 has tested society to its limits and I am encouraged by – and proud of – how our people have pulled together to do what’s right for each other, our
business and for society as a whole," said Cutifani.
Cutifani said during he expected a better second half and the recovery of diamonds in the fourth quarter.
“ As the global economy recovers, PGMs, copper and iron ore are all particularly well-positioned, while De Beers, as the world's leading diamond business, is taking all appropriate steps to address the effects of acute disruption,” said Cutifani.
The interim dividend was $0.28 per share, consistent with the company's 40 percent payout policy.
BUSINESS REPORT ONLINE