Anglo American (AAL) H2 2023 earnings summary

Executive summary

• 2023 revenue was $32.5bn and EBITDA $10.0bn, amid a $5.5bn revenue impact from market weakness in PGMs and De Beers.

• Operational performance was stronger at Quellaveco and Minas-Rio; lower commodity prices, production challenges and cost pressures weighed on results elsewhere.

• Priorities include operational stability, portfolio improvement, disciplined capital allocation and delivery of longer-term growth options.

Financial highlights

• Revenue was $32.5bn, down 13%; EBITDA was $10.0bn, down 31%; EPS was $2.42, down 51%.

• Underlying earnings were $2.9bn; statutory profit was $0.3bn after $2.6bn of special items.

• Cash flows from operations were $8.1bn; working capital absorbed $1.2bn, and sustaining attributable free cash flow was $0.1bn.

• Total dividend was 96 cents per share, down 52%; net debt rose to $10.6bn from $6.9bn.

Outlook and guidance

• 2024 production guidance: copper 730–790kt, PGMs 3.3–3.7Moz, iron ore 58–62Mt, diamonds 29–32Mct and steelmaking coal 15–17Mt.

• 2024 capex is guided at $5.7bn; guidance is $5.7bn for 2025 and $5.3bn for 2026. Long-term sustaining capex is $3.0–3.5bn plus life-extension capex.

• 2024 underlying effective tax rate is 40–42%; long-term underlying rate is 35–39%. 2024 depreciation guidance is $3.0–3.2bn.

• Targeting ~$1bn annual operating-cost savings by end-2024 and ~$1.6bn capex savings over 2024–26.

• 2024 production outlook includes a ~65kt Quellaveco timing impact, expected to be recovered in 2027; the revised plan adds ~25kt copper over 2024–27.