Anglo American : Preliminary Results 2021

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24 February, 2022

Strong market dynamics and operational performance drive underlying EBITDA of $20.6 billion

Financial highlights for the year ended 31 December 2021

• Underlying EBITDA* of $20.6 billion: strong demand and prices, and resilient operational performance

• Profit attributable to equity shareholders of $8.6 billion

• Net debt* of $3.8 billion (0.2x underlying EBITDA): strong cash generation partially offset by investment in growth

• $6.2 billion shareholder return: capital discipline and commitment to return excess cash
  • $2.1 billion proposed final dividend, equal to $1.18 per share final dividend, consistent with our 40% payout policy, and $0.50 per share special dividend
  • $4.1 billion return announced at half year, including $1.0 billion special dividend and $1.0 billion buyback

• Exit from thermal coal operations completed

Mark Cutifani, Chief Executive of Anglo American, said: "In a year of two distinct halves, we recorded strong demand and prices for many products as economies recouped lost ground, spurred by government stimulus. Copper and PGMs - essential to the global decarbonisation imperative - and premium quality iron ore for greener steelmaking, supported by an improving market for diamonds, all contributed to a record financial performance, generating underlying EBITDA of $20.6 billion.

"We generated attributable free cash flow of $7.8 billion due largely to a strong price environment in the first half, which moderated in the second half. Our return on capital employed of 43% was well above our targeted 15% through-the-cycle return, as it should be in times of strong pricing, and we increased our mining EBITDA margin to 56%. We are resolutely committed to capital discipline and to maintaining a strong and flexible balance sheet. At the end of 2021, net debt of $3.8 billion, or 0.2x underlying EBITDA, reflects the strong cash generation of the business, partially offset by our investments in growth. The proposed final dividend of $1.18 per share, in line with our 40% payout policy, in addition to a special dividend of $0.50 per share, will bring our total return to shareholders in respect of 2021 to $6.2 billion (including our share buyback), equal to $4.99 per share.

"We continue to make progress in reducing fatal incidents and our broader safety processes and procedures. Sadly, however, we still lost one colleague in a vehicle incident in Peru. Our total injury frequency rate tracked up marginally, after multiple years of progressive improvement, reflecting the changed operating configurations necessary to manage Covid-19. Our health focus remains on helping keep our people protected from Covid-19. In many ways, the pandemic has proven more challenging in 2021, particularly where vaccination roll-outs have been slower and uptake lower. We have provided significant monetary and other support to accelerate vaccination rates, including by using our own health facilities and encouraging vaccination at the earliest opportunity.

"Our balanced investments are driving margin-enhancing volume growth of 35%⁽¹⁾ over the next decade, including copper from Quellaveco, due to start up mid-year. The large majority of our output and investment capital is focused on future-enabling products - metals and minerals essential for decarbonisation and to meet global consumer demand. Through our integrated technology and sustainability programme, we are well positioned to run the business safely and sustainably, further enhance our competitive position and - disciplined with our capital - deliver value-adding growth as a foundation for future returns."

Year ended	31 December 2021	31 December 2020	Change
US$ million, unless otherwise stated
Revenue(2)	41,554	25,447	63 %
Underlying EBITDA*	20,634	9,802	111 %
Mining EBITDA margin*	56 %	43 %
Attributable free cash flow*	7,803	1,209
Profit attributable to equity shareholders of the Company	8,562	2,089	310 %
Basic underlying earnings per share* ($)	7.22	2.53	185 %
Basic earnings per share ($)	6.93	1.69	310 %
Final dividend per share ($)	1.18	0.72	64 %
Final special dividend per share ($)	0.50	-
Interim and special dividend per share ($)	2.51	0.28
Share buyback per share ($)	0.80	-
Total dividend and buyback per share ($)	4.99	1.00	399 %
Group attributable ROCE*	43 %	17 %

Terms with this symbol * are defined as Alternative Performance Measures (APMs). For more information refer to page 83 of the Preliminary Results PDF.

⁽¹⁾ Copper equivalent volume growth vs. 2021 copper equivalent production.
⁽²⁾ The comparative figure for 2020 has been restated. See note 2 to the Condensed financial statements for further details.

View full PDF of this press release (907KB, opens in a new window)

For further information, please contact:

Media	Investors
UK	UK
James Wyatt-Tilby Email: [e-mail] Tel: [phone]	Paul Galloway Email: [e-mail] Tel: [phone]
Marcelo Esquivel Email: [e-mail] Tel: [phone]	Juliet Newth Email: [e-mail] Tel: [phone]
Katie Ryall Email: [e-mail] Tel: [phone]	Emma Waterworth [e-mail] Tel: [phone]
South Africa
Nevashnee Naicker Email: [e-mail] Tel: [phone]	Michelle Jarman 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 metallurgical coal for steelmaking, 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

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