Anglo American updates its performance and growth outlook

Anglo American hosted a briefing for investors on Tuesday where it provided an update on the group’s current and projected operational and financial performance in which it expects to target $3-4bn of incremental annual EBITDA by 2022.

The briefing covered the next three financial years and included capital expenditure.

Mark Cutifani, chief executive of Anglo American, said: "We have completely transformed the quality of our asset portfolio and our performance as a whole over the last five years. We have created a highly competitive business, with Anglo American amongst the very best in the industry in terms of margin.

"We have continued to improve our performance during 2018. We now expect production to be 2% above previous guidance and costs 5% below. We are also confident about the outlook, with production expected to increase by 3% in 2019, with cost inflation fully absorbed by our productivity and cost improvements.

Anglo American expects a further 5% production increase in both 2020 and 2021. In the last three years, it has reduced net debt by more than $9bn and paid almost $2bn in dividends to our shareholders in the last 18 months.

"Anglo American's portfolio spans the products and product qualities that will supply the needs of a cleaner, more electrified and richer world. We have a well sequenced range of high returning, quick payback growth options, from life extensions in diamonds and metallurgical coal, to growth across our copper, diamonds and met coal businesses in particular. Combined with our multi-stakeholder focus to create a truly sustainable business, we believe we are set to keep delivering on all fronts,” said Cutifani.