Anglo American : Interim Results 2022

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28 July, 2022

Portfolio quality supports underlying EBITDA of $8.7 billion

Financial highlights for the six months ended 30 June 2022

• Underlying EBITDA* of $8.7 billion
• Profit attributable to equity shareholders of $3.7 billion
• Net debt* of $4.9 billion (0.3 x annualised underlying EBITDA): cash generation partially offset by investment in asset resilience and growth
• $1.5 billion interim dividend, equal to $1.24 per share, consistent with our 40% payout policy
• Quellaveco commissioned on time and on budget: multi-decade new copper operation expected to produce 300,000 copper equivalent tonnes per year on average over first 10 years

Duncan Wanblad, Chief Executive of Anglo American, said: "Anglo American's differentiated combination of portfolio quality and growth optionality, underpinned by our operating model and innovation track record, continues to position us strongly through the current market volatility and longer term cycle. Our unwavering focus is on driving consistent performance across our operations - which starts with the safety and health of our employees - and progress towards our full suite of sustainability ambitions. As we progressed through the first half, we began to regain operational momentum while also adjusting to the considerable challenges posed by Covid-19 related absenteeism, disrupted supply chains and logistics corridors, weather extremes and geopolitically-led economic volatility.

"Against that backdrop, we generated underlying EBITDA of $8.7 billion in the first six months, our second highest for a half year, albeit a 28% decrease compared to the record first half of 2021. Attributable free cash flow of $1.6 billion was driven largely by strong prices in the first quarter that declined towards the end of the period in tandem with increasing cost inflation. Despite those headwinds and our operational challenges, in steelmaking coal and iron ore in particular, that reduced our planned production output, our return on capital employed of 36% stayed well above our targeted 15% through-the-cycle return and our mining EBITDA margin remained at a healthy 52%. Our commitment to capital discipline and to a strong and flexible balance sheet is paramount to remain resilient to the external environment and retain optionality for value-adding growth. At the end of June, net debt of $4.9 billion, or 0.3 x annualised underlying EBITDA, reflects the cash generation of the business, partially offset by our investments in our existing assets and future growth. Our $1.5 billion interim dividend of $1.24 per share is in line with our 40% payout policy.

"We continue to make progress on our long term safety journey. There is no doubt, however, that the operational changes necessary to help protect the health of our employees during the last two years require us to apply additional targeted effort to regain our momentum of continuous improvement. I am also sad to report that we lost one colleague in March in an equipment lifting incident in Australia. It is simply unacceptable to lose a life at work and we are determined to eliminate workplace fatalities once and for all. This is my number one priority.

"Looking ahead, growing the value of our business by progressing asset development options is the foundation of our organic margin-enhancing volume growth potential of 30%⁽¹⁾ over the next decade. More than a third of this growth comes from our newly commissioned Quellaveco copper operation. With our customer proposition almost entirely oriented around future-enabling metals and minerals, we are well positioned to play a critical role in the decarbonisation of global energy and transport systems, alongside good progress in meeting our own ambitious emissions targets, thereby delivering enhanced value for our shareholders and stakeholders across society."

Six months ended US$ million, unless otherwise stated	30 June 2022	30 June 2021	Change
Revenue	18,111	21,779	(17) %
Underlying EBITDA*	8,701	12,140	(28) %
Mining EBITDA margin*	52 %	61 %
Attributable free cash flow*	1,564	5,641	(72) %
Profit attributable to equity shareholders of the Company	3,680	5,188	(29) %
Basic underlying earnings per share* ($)	3.11	4.30	(28) %
Basic earnings per share ($)	3.03	4.18	(28) %
Interim dividend per share ($)	1.24	1.71	(27) %
Additional returns per share ($)	-	1.60
Total dividend and buyback per share ($)	1.24	3.31	(47) %
Group attributable ROCE*	36 %	49 %

Terms with this symbol ^* are defined as Alternative Performance Measures (APMs). For more information, refer to page 86.

⁽¹⁾ Copper equivalent volume growth vs. 2021 copper equivalent production.

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For further information, please contact:

Media	Investors
UK	UK
James Wyatt-Tilby	Paul Galloway
Email: [e-mail]	Email: [e-mail]
Tel: [phone]	Tel: [phone]
Marcelo Esquivel	Emma Waterworth
Email: [e-mail]	Email: [e-mail]
Tel: [phone]	Tel: [phone]
Katie Ryall	Michelle Jarman
Email: [e-mail]	Email: [e-mail]
Tel: [phone]	Tel: [phone]
South Africa
Nevashnee Naicker
Email: [e-mail]
Tel: [phone]
Sibusiso Tshabalala
Email: [e-mail]
Tel: [phone]

Notes to editors:

Anglo American is a leading global mining company and our products are the essential ingredients in almost every aspect of modern life. Our portfolio of world-class competitive operations, with a broad range of future development options, provides many of the future-enabling metals and minerals for a cleaner, greener, more sustainable world and that meet the fast growing every day demands of billions of consumers. With our people at the heart of our business, we use innovative practices and the latest technologies to discover new resources and to mine, process, move and market our products to our customers - safely and sustainably.

As a responsible producer of diamonds (through De Beers), copper, platinum group metals, premium quality iron ore and steelmaking coal, and nickel - with crop nutrients in development - we are committed to being carbon neutral across our operations by 2040. More broadly, our Sustainable Mining Plan commits us to a series of stretching goals to ensure we work towards a healthy environment, creating thriving communities and building trust as a corporate leader. We work together with our business partners and diverse stakeholders to unlock enduring value from precious natural resources for the benefit of the communities and countries in which we operate, for society as a whole, and for our shareholders. Anglo American is re-imagining mining to improve people's lives.

www.angloamerican.com

Forward-looking statements and third-party information:

This document includes forward-looking statements. All statements other than statements of historical facts included in this document, including, without limitation, those regarding Anglo American's financial position, business, acquisition and divestment strategy, dividend policy, plans and objectives of management for future operations, prospects and projects (including development plans and objectives relating to Anglo American's products, production forecasts and Ore Reserve and Mineral Resource positions) and sustainability performance related (including environmental, social and governance) goals, ambitions, targets, visions, milestones and aspirations, are forward-looking statements. By their nature, such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Anglo American or industry results to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.

Such forward-looking statements are based on numerous assumptions regarding Anglo American's present and future business strategies and the environment in which Anglo American will operate in the future. Important factors that could cause Anglo American's actual results, performance or achievements to differ materially from those in the forward-looking statements include, among others, levels of actual production during any period, levels of global demand and commodity market prices, mineral resource exploration and project development capabilities and delivery, recovery rates and other operational capabilities, safety, health or environmental incidents, the effects of global pandemics and outbreaks of infectious diseases, the impact of attacks from third parties on our information systems, natural catastrophes or adverse geological conditions, climate change and extreme weather events, the outcome of litigation or regulatory proceedings, the availability of mining and processing equipment, the ability to obtain key inputs in a timely manner, the ability to produce and transport products profitably, the availability of necessary infrastructure (including transportation) services, the development, efficacy and adoption of new technology, challenges in realising resource estimates or discovering new economic mineralisation, the impact of foreign currency exchange rates on market prices and operating costs, the availability of sufficient credit, liquidity and counterparty risks, the effects of inflation, political uncertainty, tensions and disputes and economic conditions in relevant areas of the world, evolving societal and stakeholder requirements and expectations, shortages of skilled employees, the actions of competitors, activities by courts, regulators and governmental authorities such as in relation to permitting or forcing closure of mines and ceasing of operations or maintenance of Anglo American's assets and changes in taxation or safety, health, environmental or other types of regulation in the countries where Anglo American operates, conflicts over land and resource ownership rights and such other risk factors identified in Anglo American's most recent Annual Report. Forward-looking statements should, therefore, be construed in light of such risk factors and undue reliance should not be placed on forward-looking statements. These forward-looking statements speak only as of the date of this document. Anglo American expressly disclaims any obligation or undertaking (except as required by applicable law, the City Code on Takeovers and Mergers, the UK Listing Rules, the Disclosure and Transparency Rules of the Financial Conduct Authority, the Listings Requirements of the securities exchange of the JSE Limited in South Africa, the SIX Swiss Exchange, the Botswana Stock Exchange and the Namibian Stock Exchange and any other applicable regulations) to release publicly any updates or revisions to any forward-looking statement contained herein to reflect any change in Anglo American's expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based.

Nothing in this document should be interpreted to mean that future earnings per share of Anglo American will necessarily match or exceed its historical published earnings per share. Certain statistical and other information about Anglo American included in this document is sourced from publicly available third party sources. As such it has not been independently verified and presents the views of those third parties, but may not necessarily correspond to the views held by Anglo American and Anglo American expressly disclaims any responsibility for, or liability in respect of, such information.

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