OWN CORRESPONDENT, London | Wednesday 11.10am
ANGLO American Plc, reporting its first set of annual results as a London-listed mining company, said on Wednesday that 1999 headline profits rose 13% to $1,30-billion, buoyed by platinum and diamonds.
Analysts polled by Reuters had forecast a headline figure — which is before a $410-million exceptional gain — of around $1,18–billion with forecasts in a range $1,05-billion to $1,27-billion. The comparable 1998 figure was restated from $1,107-billion previously.
Emphasising its confidence in the future, Anglo hiked its dividend for the year to 150 US cents a share from 124 cents — well above the forecast range of 125-132.
”The dividend is key. It’s a real sign that their cashflow has turned around,” said one mining industry analyst, noting that the full impact of an upturn in commodities would be felt this year.
Chairman and chief executive Julian Ogilvie Thompson painted a bullish picture for 2000, as the full impact of an upturn in commodities is felt. ”The outlook for commodities in the year ahead is positive with the US economy continuing to grow strongly while Europe generally shows positive signs of recovery,” he said in a statement.
The dividend for the year was raised to 150 US cents per share from 124 in 1998. Platinum unit Amplats and sister company De Beers, in which Anglo has a 33% stake, sparkled in the results, reflecting strong demand and firm prices for both commodities.
That offset a dismal performance from the coal business where prices have sunk to their lowest ever levels in real terms. Rock bottom prices triggered a cutback in production by Anglo’s rival Billiton Plc earlier this week. Anglo shares have ridden a roller-coaster since the company moved from Johannesburg to London in May 1999. They peaked at 44.25 last December, only to fall back below their UK debut price earlier this month — touching a low of 26.50 — as investors have abandoned ”old economy” mining stocks.– Reuters