Anglo American : Preliminary Results 2020

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25 February, 2021

Business resilience and robust demand deliver underlying EBITDA of $9.8 billion

Financial highlights
Year ended 31 December 2020

• Generated underlying EBITDA* of $9.8 billion (2019: $10.0 billion)
• Profit attributable to equity shareholders of $2.1 billion (2019: $3.5 billion)
• Net debt* of $5.6 billion (0.6x underlying EBITDA), reflecting investment in growth, largely offset by H2 cash flow
• Final dividend of $0.72 per share, consistent with our 40% payout policy
• Investing in high quality growth, including Quellaveco (copper) and Woodsmith (low carbon fertiliser)
• Good progress towards exiting remaining thermal coal operations in South Africa
• Committed to 30% net GHG reduction by 2030 and carbon neutrality across operations by 2040

Mark Cutifani, Chief Executive of Anglo American, said:

'In 2020 we saw much of the world tested to its limits by Covid-19. I am immensely proud of how our team of more than 95,000 people across Anglo American pulled together to do what's right for each other, for our many stakeholders across society and the business. We showed considerable speed and agility to help keep people and communities safe while supporting business continuity.

'Making sure every employee returns home safely at the end of each day drives our thinking and behaviours and it is with this mindset that we achieved our best ever safety performance. However, it remains our most pressing challenge that we still experience serious and fatal safety incidents. In 2020, and after eight fatality-free months at our managed operations, two people lost their lives at work, one in each of our PGMs and thermal coal businesses. While we have made such progress, we can never say we have had a good year unless we have zero fatal incidents.

'The resilience of our diversified business, following the operational disruptions of the first half and benefiting from strong metals prices in the latter months, generated underlying EBITDA of $9.8 billion, with an increased mining EBITDA margin of 43%. We are delivering strong cash returns, investing in value-adding growth and maintaining our strong balance sheet, resulting in a 17% ROCE and an attractive Total Shareholder Return of 16.2% for the year.

'Our balanced investment programme is driving material business improvement, while also delivering margin-enhancing and sector leading volume growth of 20-25% over the next three to five years, that includes first copper production from Quellaveco in 2022. Together with our P101 and technology work, we are on track to deliver our targeted $3-4 billion annual run-rate of incremental improvement by the end of 2022, also taking us towards our longer term target of a 45-50% mining EBITDA margin.

'Looking further out, we benefit from a sequence of high returning growth options, mainly in copper, PGMs, and now also crop nutrients. Our business is increasingly positioned to supply those products that are fundamental to enabling a low carbon economy and catering to global consumer demand trends. Combined with our integrated approach to technology and sustainability - also helping us reach carbon neutrality across our operations by 2040 - we are well positioned to meet the expectations of our full breadth of stakeholders.'

Year ended US$ million, unless otherwise stated	2020	2019	Change
Revenue	30,902	29,870	3%
Underlying EBITDA*	9,802	10,006	(2)%
Mining EBITDA margin*	43%	42%
Attributable free cash flow*	1,209	2,287	(47)%
Profit attributable to equity shareholders of the Company	2,089	3,547	(41)%
Basic underlying earnings per share* ($)	2.53	2.75	(8)%
Basic earnings per share ($)	1.69	2.81	(40)%
Final dividend per share ($)	0.72	0.47	53%
Group attributable ROCE*	17%	19%

_{Terms with this symbol * are defined as Alternative Performance Measures (APMs). For more information on the APMs used by the Group, including definitions, please refer to page 78 of the Preliminary Results PDF.}

View full PDF of this press release (896KB, opens in a new window)

For further information, please contact:

UK	UK
James Wyatt-Tilby Email: [e-mail]	Paul Galloway Email: [e-mail]
Marcelo Esquivel Email: [e-mail]	Robert Greenberg Email: [e-mail]
Katie Ryall Email: [e-mail]	Emma Waterworth Email: [e-mail]
South Africa
Sibusiso Tshabalala Email: [e-mail]
Nomonde Ndwalaza Email: [e-mail]

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, development projects and undeveloped resources, provides many of the metals and minerals that enable a cleaner, greener, more sustainable world and that meet the fast growing consumer-driven demands of developed and maturing economies. With our people at the heart of our business, we use innovative practices and the latest technologies to mine, process, move and market our products to our customers - and to discover new resources - safely and sustainably.

As a responsible producer of diamonds (through De Beers), copper, platinum group metals, the steelmaking ingredients of iron ore and metallurgical coal, and nickel - with crop nutrients in development and thermal coal operations planned for divestment - we are committed to being carbon neutral across our operations by 2040. We work together with our business partners and diverse stakeholders to unlock sustainable 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

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