Global mining giant Anglo American plans a bonus dividend of $1-billion and a big share buy-back programme, it said on Friday after delivering bumper first-half earnings from record metals prices.
Anglo American said net profit surged 60,1% to $2,943-billion in the six months ended June 30 from the equivalent figure in 2005. Group revenue increased by 9,8% to $18,825-billion.
Anglo American, which is registered in Britain but operates mainly in South Africa, added that it will raise its share buy-back programme by $4-billion.
In March, Anglo American had returned $2-billion to shareholders by way of a share buy-back.
Investors cheered the announcements, sending Anglo American’s share price 4,32% higher to 2 319 pence in afternoon London trade. The capital’s FTSE 100 index of leading shares, on which Anglo American is traded, rose 0,18% to 5 848,80 points.
”The outlook for most of our metals and minerals remains positive as growth in the OECD [Organisation for Economic Cooperation and Development] and China continues to underpin demand,” chief executive Tony Trahar said in comments accompanying the earnings release.
”While rising interest rates may moderate global growth somewhat from current robust levels, the improving economic outlook for Japan and Euroland and the continued strength in Asian economies, notably India and China, remains supportive,” he added.
The Paris-based OECD covers 30 leading industrialised countries.
Anglo American, meanwhile, said that its first-half underlying earnings were a record $2,5-billion ”as continued strong metal prices and improved volumes reflected the favourable trading environment for the group’s key commodities”.
Base metals price, notably copper, have continually struck record high points since the start of 2006 owing to strong demand and tight stockpiles.
Anglo American said that during the first half its volume of production of platinum, zinc and nickel, and from coal operations in Colombia and South Africa and of industrial minerals, had risen.
”However, the group encountered challenging operating conditions at some of its copper and coal mines,” the group noted. — Sapa-AFP