Anglo American, a multinational diversified miner, faced a challenging year in 2023 as weak commodity markets impacted its financial results significantly. The company reported a 94% drop in net profit, landing at $283 million, mainly due to impairments from its diamond and nickel businesses, as well as lower prices for platinum and diamonds.
Earnings and Dividend Adjustment
The company’s underlying earnings before interest, taxes, depreciation, and amortization fell to $9.96 billion from $14.495 billion. The main contributors were copper and iron ore, generating $3.23 billion and $4.01 billion, respectively. Despite analysts’ expectations of $9.83 billion in group earnings, Anglo American fell short.
In response to the challenging financial landscape, the company trimmed its final dividend to 41 U.S. cents per share from 74 cents. This adjustment brought the full-year dividend payout to 96 cents, down from $1.98.
Revenue and Outlook
Revenue decreased to $30.65 billion from $35.12 billion, below analysts’ forecasts of $30.83 billion. With lower earnings and falling prices impacting its financial performance, Anglo American had to make strategic decisions to navigate the challenging market conditions.
Despite these challenges, the company remains focused on adapting to the evolving market dynamics to sustain its long-term growth and resilience in the mining industry.
