Anglo American (AAL) H1 2024 earnings summary

Executive summary

• Delivered resilient H1 2024 results with $5.0 billion EBITDA, strong cost performance, and stable operations despite a 10% decline in commodity prices and challenging market conditions.

• Accelerated portfolio transformation, focusing on copper, premium iron ore, and crop nutrients, with divestments or demergers underway for steelmaking coal, nickel, PGMs, and De Beers.

• Maintained commitment to operational excellence, safety, and sustainability, with ongoing cost-saving initiatives and a disciplined approach to capital allocation.

• Achieved a 23% improvement in injury rate since 2022, with lowest ever first half safety performance, though two fatalities occurred at Amandelbult.

• Net loss attributable to equity shareholders of $0.7 billion, impacted by a $1.6 billion impairment at the Woodsmith project due to a slowdown in development.

Financial highlights

• Revenue of $15.2 billion, down 1%–8% year-over-year; Group basket price fell 10%.

• EBITDA of $5.0 billion, down 3%–8%; EBITDA margin at 33%, up 2pp/200bps year-over-year.

• Net debt increased to $11.1 billion, with net debt/EBITDA at 1.1x, within target range.

• Interim dividend of $0.42 per share recommended, maintaining a 40% payout policy.

• ROCE at 14%, down 4pp year-over-year; cash conversion improved to 86%.

Outlook and guidance

• Full-year capex guidance maintained at $5.7 billion; 2025 and 2026 capex expected to decline.

• On track to deliver $1.7–$1.8 billion of sustainable cost savings by end 2024, with further reductions targeted through 2026.

• 2024 production guidance: copper 730–790kt, iron ore 58–62Mt, PGMs 3.3–3.7Moz, diamonds 23–26Mct, steelmaking coal 14–15.5Mt, nickel 36–38kt.

• Dividend payout policy of 40% of underlying earnings maintained.

• Expect to complete major portfolio transformation and divestments by end of 2025.