Mining and natural resource group Anglo American Plc (AAL.L), Friday, released interim results for the first half, reporting an increase in pre-tax profit, citing a resurgence in demand and prices for base metals, most notably copper, and said it is resuming dividend payments. The company noted that demand recovered in the platinum group metals or PGM and rough diamond markets and also said it remains confident about the outlook for the industry in the medium to long term. For the first half, the company's profit before tax increased 8% to US$3.90 billion from US$3.63 billion in the previous year. Profit attributable to equity shareholders declined 31% to US$2.06 billion from US$2.97 billion reported in the prior-year period. Basic earnings per share were US$1.71, down from US$2.47 per share in the preceding year.
Underlying earnings surged to US$2.21 billion or US$1.84 per share from US$1.1 billion or US$0.91 per share in the year-ago period. The company noted that for the first half, there was a negative exchange variance in underlying earnings of US$399 million compared to the first half of 2009.
Group revenues for the period, including associates, grew 35% to US$15.01 billion from US$11.13 billion reported in the same period last year. Operating profit including associates before special items and remeasurements-core operations improved 114% to US$4.07 billion from US$1.9 billion in the year earlier. Operating profit from subsidiaries and joint ventures were US$3.59 billion, higher than US$2.19 billion a year ago.
According to the company, operating special items and remeasurements, including associates, amounted to a charge of US$145 million, related mainly to a net loss on non-hedge derivatives of US$100 million, restructuring costs of US$59 million and accelerated depreciation in Loma de Níquel of US$36 million.
Copper division delivered an operating profit of US$1.18 billion, up 96% from last year. Iron Ore and Manganese segment recorded an operating profit of US$1.63 billion, up 126% from the preceding year, while Metallurgical Coal operating profit decreased 18% from a year ago. Thermal Coal operating profit was US$351 million, down 10% from the prior year. Diamonds recorded an attributable operating profit of US$261 million, US$257 million higher than last year and Other Mining and Industrial segment generated an operating profit 23% higher than last year. The company noted that Copper production was maintained at 2009 levels and equivalent refined platinum production decreased by 4%.
Further, the recovery in demand for diamonds continued and, accordingly, De Beers (in which the company owns 45% stake) increased its output by 134% compared to the first half of 2009. According to the company, Platinum has achieved labour productivity gains of 11%, with a 27% increase in productivity since the first half of 2008. Cynthia Carroll, chief executive of the company said, "Anglo American has made further significant progress during the first six months of 2010, delivering on our strategic objectives. Our businesses are operating strongly under our new organisational structure, our cost and efficiency programmes continue to deliver ahead of expectations, our divestment programme is well under way and we continue to make further progress on our safety performance."
The company stated that by the end of June, its asset optimization and procurement programmes had achieved a run rate of $1 billion of benefits, well ahead of expectations. Looking ahead, Anglo America said it is making excellent progress towards its stated target of $2 billion from the core businesses alone by the year 2011.
The company said the divestment of its non-core businesses is well under way and the sales of its zinc portfolio, several of Tarmac's European businesses and five undeveloped coal assets in Australia are expected to generate proceeds in excess of $2.2 billion.
In addition, the company announced the resumption of dividend payments with an interim dividend of US$0.25 per share. Anglo American also said it intends to follow a progressive dividend policy, which seeks to maintain or steadily increase dividends in dollar terms over time, considering the earnings potential, investment needs and resultant cash flows of the Group. "The short term outlook for the world economy has become more uncertain in recent months, with certain less favourable leading economic indicators. However, in the medium to long term, we remain confident about prospects for Anglo American with the process of industrialisation and urbanisation in China, India, Brazil and other emerging countries continuing to drive demand for our key commodities," added Carroll. AAL.L is currently trading at 2,526 pence, down 15 pence or 0.59%, on a volume of 1.28 million shares. In the past 52 weeks, the shares have been trading in a range of 1,777.5 pence-3,015.5 pence on the LSE.
For comments and feedback contact: editorial@rttnews.com
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.