Anglo American Release 2017 Preliminary Results

Anglo American Plc. (LSE: AAL) announced their preliminary results for 2017, sharing that their free cash flow increased by 93 percent to $4.9 billion, halving net debt to $4.5 billion.

Highlights are as follows:

• Delivered attributable free cash flow* of $4.9 billion, a 93% increase
• Reduced net debt* to $4.5 billion, a 47% reduction, equal to 0.5x net debt / EBITDA
• Generated underlying EBITDA* of $8.8 billion, a 45% increase
• Profit attributable to equity shareholders doubled to $3.2 billion
• Achieved cost and volume improvements of $1.1 billion – in excess of target
• Targeting additional $3-4 billion annual underlying EBITDA run-rate improvement by 2022
• Increased dividend of 54 US cents per share for the second half, equal to 40% of second half underlying earnings
• Total dividend payable for 2017 of $1.02 per share

Mark Cutifani, chief executive of Anglo American, commented:

We have delivered a 93% increase in attributable free cash flow, almost halving net debt to $4.5 billion at the year end. These strong financial results benefit from transformed productivities and efficiencies across our business – including a 28% productivity improvement in 2017 alone – together with our portfolio upgrading and improved prices for many of our products. Our increased dividend for the second half equates to our targeted level of 40% of underlying earnings, totalling $1.02 per share for the year as a whole.

We exceeded our cost and volume improvement target for the year, achieving $1.1 billion of underlying EBITDA benefit. Over the last five years, we have now delivered a $4.2 billion annual underlying EBITDA improvement. While we have already driven a material operational turnaround, we believe there is significant additional upside within the business both through further operating gains and from selected organic growth options. As part of how we run the business, we are therefore targeting an additional $3-4 billion annual run‑rate improvement by 2022 from production volumes, productivity improvements and cost reductions.

Click here to read the full Anglo American Plc. (LSE: AAL) press release.