11th Dec 2020 11:51
(Alliance News) - Anglo American PLC on Friday said a strong performance by its business and balanced investment will drive sustainable returns.
The London-based mining company said it expects to deliver volume growth of between 20% and 25% over the next three to five years that includes first copper production from Quellaveco in 2022.
"Together with our P101 and technology improvement initiatives, we are on track to deliver our targeted USD3 billion to USD4 billion run-rate of incremental annual improvement by the end of 2022," said Chief Executive Mark Cutifani.
"Looking further out, our diversified portfolio of world-class competitive operations, development projects and undeveloped resources provide us with many further high quality and high returning growth options," added Cutifani.
Anglo American said it maintained a strong performance during 2020, despite Covid-19 related and other operational impacts, with unit costs down by 2%, despite lower total production volumes
The company also said it expects further performance improvement in 2021. Production in 2021 is predicted to increase by 14%, while unit costs are seen lower by a further 3%.
Elsewhere, Anglo American said it is delivering strong cash returns, with USD5 billion returned to its shareholders since 2017, even as it invests and maintains a strong balance sheet.
"Our balanced investment programme is driving considerable business improvement, with associated emissions and water benefits, while also delivering margin-enhancing growth - taking us towards our longer term target of a 45% to 50% mining earnings before interest, tax, depreciation and amortization margin," said Finance Director Stephen Pearce.
Anglo American shares were trading 1.3% lower in London on Friday at 2,467.50 pence each, while in Johannesburg, the stock was down 1.3% at ZAR495.79 a share.
By Evelina Grecenko; [email protected]
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