Anglo American advances portfolio simplification, eyes growth

LONDON - Anglo American (JO:AGLJ) PLC held its Annual General Meeting (AGM) today, where the Chair and Chief Executive addressed shareholders on the company’s performance in 2024 and outlined plans for future growth. During the meeting, the proposed demerger of Anglo American Platinum and the sale of other assets were key topics, with a focus on transforming Anglo American into a company centered around copper, premium iron ore, and crop nutrients.

Chair Stuart Chambers reported that despite global economic challenges and geopolitical volatility, Anglo American has made strides to become a more agile and resilient business. Notably, the company improved its injury frequency rate for the third consecutive year, although the loss of three colleagues in 2024 was acknowledged with deep regret.

Chambers highlighted the company’s strategic shift towards commodities that support decarbonization, improved living standards, and food security. Anglo American’s portfolio simplification is well underway, with the sale of its steelmaking coal business to Peabody Energy and its nickel business, generating significant cash proceeds. The upcoming demerger of Anglo American Platinum, set to be voted on today, is expected to be completed in early June.

The 2024 financial performance was robust, with a Total (EPA:TTEF) Shareholder Return of 24% outpacing broader market indices. A final dividend of $0.22 per share was recommended, totaling $0.64 per share for the year.

Chief Executive Duncan Wanblad emphasized the company’s operational excellence, which maintained a stable EBITDA margin of 30% despite a 10% fall in basket price. Cost savings of $1.0 billion were realized in 2024, and further savings are anticipated. Cash conversion increased significantly, allowing the company to maintain net debt at $10.6 billion.

Wanblad detailed the progress on operational excellence, portfolio simplification, and growth, with a focus on the company’s strategic priorities. The demerger of Anglo American Platinum is part of this strategy, and the company plans to retain a 19.9% shareholding post-demerger.

Looking ahead, Anglo American expects its simplified portfolio to unlock value in its copper, iron ore, and crop nutrients businesses. The company is positioned to capitalize on trends such as the energy transition and food security, with a strong start to 2025 and a focus on operational excellence.

The meeting concluded with Chambers announcing strong shareholder support for all 20 resolutions, based on approximately 64% of the share capital voted. The final results will be announced later this afternoon and published on the company’s website.

The information in this article is based on a press release statement from Anglo American PLC.

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