(Sharecast News) – Mining giant Anglo American reported a weaker first-half performance in its interim results on Thursday, amid challenging macroeconomic conditions, while it also revealed a number of key executive appointments.
The FTSE 100 company said that, amid facing macro headwinds and weaker product prices, its underlying EBITDA totalled $5.1bn for the period, making for a 41% decrease year-on-year.
That was on the back of a 13% fall in revenue to $15.67bn for the six months ended 30 June.
Profit attributable to equity shareholders was 66% lower at $1.26bn, while basic underlying earnings per share slid 56% to $1.38.
The board declared an interim dividend of 55 US cents per share, down 56% on the half-year distribution it made last year.
Net debt stood at $8.8bn, maintaining a ratio of 0.9x annualised underlying EBITDA.
The company emphasised its focus on value-adding growth investments despite challenging market conditions, and to that end, Anglo American said it was aiming to reduce its 2023 capital expenditure by $0.3bn.
On the operational front, Anglo American said its Quellaveco project was making substantial progress and remained on track to produce between 310,000 and 350,000 metric tonnes of copper this year.
“Anglo American’s portfolio quality, product and geographic diversification together with strong organic growth optionality over the next decade provide positive differentiation and position our business to capitalise on highly attractive structural supply and demand trends,” said chief executive officer Duncan Wanblad.
“Our unwavering focus is on driving consistent, competitive performance across our operations – which starts with the safety and health of our employees.”
Wanblad said there was no doubt that, while the nearer-term macro picture presented challenges, the longer-term demand outlook for “future-enabling metals and minerals” was compelling.
“As most major economies accelerate their decarbonisation programmes and as the global population grows by up to two billion people over the next 25 years, with an associated need for higher living standards, our objective is to grow the value of our business into that demand.”
The company’s subsidiary Anglo American Platinum meanwhile announced the appointment of Craig Miller as its chief executive officer on Thursday, effective from 1 October.
The appointment was made after Natascha Viljoen decided to take on the role of chief operating officer at Newmont Corporation earlier in the year.
Furthermore, Anglo American announced the appointment of John Heasley as its finance director, replacing Stephen Pearce, who announced his retirement in May.
Heasley, currently serving as CFO of the Weir Group, would bring much experience in the mining industry as well as financial expertise.
He was expected to join the company’s executive leadership team by the end of the year, ensuring a smooth transition during the year-end financial reporting process.
Reporting by Josh White for Sharecast.com.