JOHANNESBURG (miningweekly.com) – Diversified mining and marketing company Anglo American, which shot the lights out on Thursday with the presentation of an all-time record set of half-year results, is on its way to becoming a minerals solutions provider rather than a digger of holes.
The London- and Johannesburg-listed Anglo is now about the sustainable delivery of value for all of its stakeholders. (Also watch attached Creamer Media video.)
“We believe that delivery of sustainable returns to all stakeholders is an imperative that will define the long-term success of our business,” Anglo CEO Mark Cutifani said during the presentation covered by Mining Weekly.
In the six months to the end of June, Anglo generated earnings before interest, taxation, depreciation and amortisation (Ebitda) of $12.1-billion, at an Ebitda margin of 61%.
“Delivering better-than-10% free cash flow through the cycle is the key to both investing in future opportunities, delivery of returns to shareholders and making sure we continue to build and grow the business.
“By focusing on our returns on capital, the ROCE number, making sure that we are not blowing returns by over capitalising the assets. That natural tension between the two is critical, and from our point of view is about delivery of long-term value for us. And then making sure that that value is sustainable and growth is sustainable, our seven pillars of value, starting from safety and health, through to social performance right the way through to making sure that our balance sheet is flexible so we can be counter cyclical.
“For us, this is what we come to work thinking about each and every day and these are where the debates are focused in making sure we’ve got the position right through the future,” said Cutifani.
SUSTAINABILITY UPDATE OCTOBER
While the metals and minerals produced by Anglo are critical to decarbonising the planet, Cutifani talks of being under no illusions.
“Improvements must be delivered sustainably and our technical innovation programme must connect with all of those objectives across the business. These capabilities are also the key to delivering our sustainable mining plan and carbon neutral operations by 2040.
“Importantly, these targets are backed by solid plans and work programmes that will deliver long-term sustainability while also driving productivity and cost improvements. One can go with the other if you’ve got the technology right and you’re executing the key sequences to make sure that you make this a net business performance improvement, as well as building a cleaner and healthier set of operations,” Cutifani said.
“I believe we will be in a position for our sustainability update event in October to announce our Scope 3 targets that will then demonstrate to people how we believe we can travel over the next ten to 20 years, making a net positive impact across the globe and certainly demonstrate that mining can be one of the key drivers of a clean future,” he added.