Anglo American profits rise
Global miner Anglo American posted a 14 per cent rise in full-year operating profit, broadly in line with market expectations, as bumper iron ore profits and record income from coal helped offset a drop in copper revenues.
The miner said 2011 operating profit totalled $11.1bn, just shy of a market forecast of $11.2 billion, according to the company’s own consensus of analyst estimates.
Underlying earnings per share jumped 23 per cent to $5.06, above expectations of $4.78.
Hopes of special dividend were disappointed, but Anglo raised its total dividend 14 percent to 74 cents per share.
Anglo units Kumba Iron Ore, Amplats and De Beers have already reported earnings for the year, with Kumba and De Beers boosted by higher prices, while platinum miner Amplats warned on profits last month after stoppages and costs linked to a black empowerment deal.
Anglo said operating profit from key iron ore operations, dominated by Kumba, climbed 23 per cent to $4.5bn, supported by strong prices.
The market’s view of Anglo’s iron ore growth prospects has been dampened by cost overruns at Minas-Rio, its flagship greenfield Brazilian iron ore project, but chief executive Cynthia Carroll said the miner had made “good progress” within a high inflation environment.
“To mitigate these challenges, we are implementing various measures including acceleration activities within the previously announced 15 per cent capital expenditure increase, to target first ore on ship in the second half of 2013,” she said.
Operating profit from its copper unit dipped 13 per cent to $2.46bn, as the miner was hit by an expected double blow of lower sales volumes and higher costs.