British mining company Anglo American has reported $1.26bn in profit attributable to shareholders for the first half of this year, a 66% drop resulting from lower prices and “slower than expected recovery” in China.
The company’s profit stood at $3.6bn last year.
Basic underlying earnings per share in H1 2023 were $3.11, a 56% decrease from $1.38 in the prior year.
The group revenue dropped 13% from $15.67bn to $18.11bn over this period.
Underlying earnings before interest, taxes, depreciation and amortisation (EBITDA) dropped by 41% year-on-year to $5.1bn amid a decline in commodity prices and an input cost surge.
Iron ore had the highest-underlying EBITDA contribution at $1.77bn. It was followed by copper, with a share of $1.49bn. The other biggest contributors include platinum group metals ($667m), steelmaking coal ($615m) and De Beers ($347m).
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below formBy GlobalData
The average market price for the company’s products dropped 19% compared with H1 2022, resulting in a $4.5bn EBITDA reduction.
Platinum group metals recorded a reduction of 29%, with prices of rhodium and palladium tumbling 47% and 29%, respectively. Hard coking coal and iron ore prices declined by 31% and 22%, respectively.
Anglo American CEO Duncan Wanblad said: “Macro headwinds – principally, weaker prices for our products and input cost inflation – certainly weighed on our first half financial performance. We are on track to deliver on our full-year production guidance, which includes a significant anticipated step-up in volumes in the second half.
“Our focus on operational stability and cost control are our key margin levers and we also expect to deliver annual efficiencies of $0.5bn from across our full range of business support activities.”