Anglo American’s 2019 profit up 9% on higher iron ore, precious metals prices

Global miner Anglo American said on Thursday its full-year profits climbed 9% as higher prices for iron ore and precious metals outweighed weakness in diamonds and coal.

Anglo’s underlying earnings before interest, tax, depreciation and amortisation rose to $10 billion in the year to December from $9.16 billion a year earlier.

The figure was in line with analysts’ average estimate of $9.97 billion, according to Refinitiv IBES data.

“We have also benefited from product and market diversification, with strong precious metals and iron ore prices offsetting weakness in diamonds and coal,” said chief executive Mark Cutifani.

Anglo declared a final dividend of $0.47 a share, bringing total dividends for 2019 to $1.09 per share versus $1 paid out in 2018.

This was in line with Anglo’s pledge to pay out 40% of underlying earnings.

Anglo’s Los Bronces copper mine has been hurt by water shortages in Chile due to drought, while diamond output was lower as its open-cast Venetia mine in South Africa transitioned to underground and a mine in Canada reached the end of its life.