Anglo American聽(LON: AAL)聽will return $4.1 billion to shareholders as soaring commodity prices聽and the聽reopening of economies around the world聽helped the聽company聽hit聽.听听
The聽diversified miner聽reported pre-tax profits of $10.1聽billion for the six months to June,聽up聽from $1.7聽billion in the same period聽last year.听听
Revenue rose 114% to $21.7 billion and profit attributable to shareholders聽climbed to聽$5.2 billion, compared with $471聽million聽in聽H1 last year.聽It means that Anglo American more than doubled what it made in 2020 as a whole.聽
In line with聽its objective of maximizing shareholder returns,聽the company聽declared dividends of $3.1聽billion, or $3.31 cents a share,聽including a聽.听听
鈥淭he first six months of 2021 have seen strong demand and prices for many of our products as economies begin to recoup lost ground, spurred by stimulus measures across the major economies,鈥� chief executive Mark Cutifani聽said in a statement.
鈥淭he share buyback should tell you that we don鈥檛 think this is as good as it gets.鈥澛�
鈥淭he platinum group metals and copper 鈥� essential to the global decarbonization imperative as we electrify transport and harness clean, renewable energy 鈥� and premium quality iron ore for greener steelmaking, supported by an improving market for diamonds, all contributed to a record half-year financial performance,鈥� Cutifani noted.聽
News of Anglo鈥檚 dividend聽follows聽rival聽Rio Tinto鈥檚聽(ASX, NYSE, LON: RIO)聽posting聽a record $9.1聽billion聽dividend,聽thanks to improved demand from China and聽strong聽prices for聽iron ore, one of its key聽commodities.聽
ESG issues
The news also聽comes against the backdrop of an聽ongoing聽class action suit聽brought on behalf of over聽100,000 members聽of the community of Kabwe, Zambia, against聽Anglo聽American South Africa.听听
International human rights lawyers published a statement asking Anglo聽American to back its聽辫耻产濒颈肠听肠辞尘尘颈迟尘别苍迟聽to聽Environmental, Social and Governance performance (ESG)聽with actions.聽
鈥淎nglo聽has repeatedly said it takes聽ESG聽seriously, vowing to support human rights and be accountable to communities, yet its denial of responsibility for the health crisis in Kabwe is at odds with this stance. We call upon shareholders to continue asking serious questions about the true cost to communities like Kabwe of聽Anglo鈥檚 financial gains,鈥� said聽Richard Meeran, partner and聽head of the International Department at Leigh Day.聽
鈥淎nglo聽would far sooner distribute its profits amongst management and the Board than look after communities blighted by its operations鈥�
Lawyer Zanele Mbuyisa, Partner at Mbuyisa聽Moleele
鈥淎nglo聽would far sooner distribute its profits amongst management and the Board than look after communities blighted by its operations,鈥澛爊oted Zanele Mbuyisa, Partner at Mbuyisa聽Moleele.聽
The company聽reiterated its commitment聽to carbon neutrality across its operations by 2040. Anglo聽has consistently been聽offloading coal operations since 2014. Together with announcing its聽intention聽to spin off its South African unit聽last year, it made the聽decision to sell Cerrej贸n, its thermal coal subsidiary in Colombia.聽
Anglo also said discussions over potential increases in taxes and royalties in Peru and Chile, where Anglo has many of its copper operations, were more 鈥渟ensible鈥� than initial proposals.
Lawmakers in Chile are discussing an opposition-sponsored bill that could see taxes on miners jump by up to 75% depending on the price of copper, the country鈥檚 key export. Peru鈥檚 new president聽Pedro Castillo, in turn, has vowed to squeeze more money from miners.
When Cutifani joined Anglo in 2013, Peru鈥檚 then president Ollanta Humala 鈥渨as supposed to be extremely left-wing, and we ended up having a very constructive relationship. And I am hopeful that鈥檚 where we will end up with Castillo as well,鈥� Anglos鈥� boss said, adding that he is already engaged in conversation with Peru鈥檚 new leader.
