Half Year 2024 Anglo American PLC Earnings Call Transcript
Key Points
- Anglo American PLC (JSE:AGL) delivered strong results despite a 10% fall in commodity prices, achieving an EBITDA of $5 billion, down just 3% from the previous year.
- The company made significant progress in cost control, achieving a 4% reduction in total unit costs compared to last year.
- Operational excellence initiatives led to a 23% improvement in injury rate performance since 2022, marking the lowest ever first-half performance for the group.
- Copper and iron ore businesses performed particularly well, with copper production costs down 15% and iron ore maintaining strong operational performance.
- The company is on track to deliver $1 billion in cost savings by the end of the year, with $0.5 billion already achieved from corporate streamlining and $0.2 billion from operational savings.
- Revenues were down 8% or $1.4 billion, largely due to a 10% reduction in the group's basket price, driven by iron ore and PGMs.
- De Beers' revenue fell by 21% due to lower diamond volumes and deteriorating trading conditions, particularly in the Chinese market.
- The fire at the Grosvenor mine in late June disrupted operations, and the full extent of the damage is still being assessed.
- The company faces challenges in the steelmaking coal segment, with higher production costs expected in the second half due to fixed costs at Grosvenor.
- The Woodsmith project experienced a $1.6 billion impairment due to a three-year delay in first production, now expected in 2030.
Good morning, everybody. I think it's just on the hour, so we'll start, and welcome to you all. It's been a pretty busy half, and I'm pleased to say through all of that, we've delivered very strong results. Despite prices falling for us by 10% for the basket of the commodities that we produce. The revised plans that we put in place have delivered an excellent performance, especially in our copper and iron ore businesses.
This alongside some very, very good cost control. Delivering significant progress on our cost-out targets has led to an EBITDA of $5 billion. That was down just 3% on half one of last year. John will unpack that a bit later. However, the focus is now absolutely unchanged and squarely on those three key strategic priorities that I laid out for you all back in February of this year, which is operational excellence, portfolio simplification and growth.
Building on the reset of many of our mine plans of last year (technical difficulty) the first half of this year. And I'm going to start there
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