Member Article

Anglo American project write-down causes profit plunge

Profits nose-dived for British mining firm, Anglo American, with a 44% decrease in underlying operating profits for 2012.

Cost impairments at the company’s Minas-Rio project in Brazil meant it posted a poor set of results, after a write-down of $4.6bn on the scheme’s value.

The platinum miner reported a 54% drop in earnings, while pre-tax profits fell by 102% to $2.39m.

Basic earnings per share were also down to 1.19 cents, from 5.1 cents in 2011; a decrease of 123%.

Despite these disappointing results, Anglo America upped its final dividend by 15% to 53 cents, to bring its total rebased dividends to 85 cents per share.

Cynthia Carroll, chief executive, commented: “As a result of markedly weaker commodity prices, ongoing cost pressures and an operating loss in our platinum business, Anglo American reported an underlying operating profit of $6.2 billion, a 44% decrease.

“Our safety performance has always been my first priority and our efforts continue to build on the progress we have made since 2006, both in terms of lives lost and lost time injuries sustained.

“I am deeply saddened that 13 of our colleagues lost their lives in 2012 - a constant reminder that we must persevere to achieve zero harm.

“Anglo American continued its drive for strong operational performance throughout 2012 in an environment of tough macroeconomic headwinds and a number of industry-wide and company specific challenges.

“Record volumes of metallurgical coal, achieving benchmark equipment performance levels, and of iron ore and increased volumes of export thermal coal and copper helped to offset the impact of illegal industrial action, declining grades and higher waste stripping.”

Anglo American is reportedly awaiting the appointment of former BP chief finance officer, Byron Grote, who will take on the role of audit committee chairman from David Challen.

This was posted in Bdaily's Members' News section by Miranda Dobson .