Anglo exceeds target as 2016 net debt declines to $8.5bn
Diversified miner Anglo American is this year seeking an additional $1-billion in incremental net cost and volume improvements, while also aiming to return to an investment-grade credit rating and resume dividend payments.
The group has already identified 75% of these targeted net cost and volume improvements.
Additionally, Anglo plans to maintain its capital expenditure at $2.5-billion and increase its stay-in-business capital to $1.2-billion this year, with capital to be “appropriately prioritised” to ensure that protection is provided for the long-term value of its assets.
During a teleconference call last week to discuss the group’s results for 2016, Anglo CEO Mark Cutifani said the “decisive and wide-ranging” operational, cost, capital and portfolio actions that Anglo put in place in 2016 had enabled the company to reduce its net debt to $8.5-billion from $12.9-billion in 2015, which was significantly below Anglo’s $10-billion target.
He commented that, despite a 3% decrease year-on-year in average commodity prices, Anglo had achieved a $3.5-billion increase in attributable free cash flow, a 25% increase in underlying interest, taxes, depreciation and amortisation (Ebitda) to $6.1-billion and increased its underlying Ebitda margin to 26%.
Cutifani said this “substantial” underlying Ebitda improvement was achieved despite headwinds, such as the labour stoppages and record snowfall at the company’s Los Bronces copper mine, in Chile, and the smelter runout at its platinum business in South Africa.
Denne historien er fra Mining Weekly 3 March 2017-utgaven av Mining Weekly.
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Denne historien er fra Mining Weekly 3 March 2017-utgaven av Mining Weekly.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
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