Anglo American records $9.8 billion EBITDA in 2020
Anglo American's underlying EBITDA came in at $9.8 billion in 2020, marginally down on the $10 billion recorded in 2019.
The continued strong performance of Minas-Rio iron ore operation in Brazil and Collahuasi copper joint venture in Chile helped mitigate COVID-19's impact, along with a strong second half production recovery, and the EBITDA disclosed in Kumba Iron Ore's results amounted to $2.8 billion. First copper production from Quellaveco is earmarked next year.
Anglo American's margins rose to 43% in 2020 despite a lower commodity price basket, supported by solid cost control, and it is targeting up to 50%. It recorded a 17% return on capital employed, although net debt finished the year at $5.6 billion, and the net dividend is 72 cents a share.
Technology is playing a key role in driving Anglo American's sustainability performance as it enables more precise targeting of metals and incurs less energy and waste. It is the essence of its FutureSmart Mining programme.
Its Unki platinum mine in Zimbabwe has been assessed against the Initiative for Responsible Mining Assurance’s (IRMA) comprehensive mining standard, achieving the IRMA 75 level of performance.
Finance Director Stephen Pearce said: "We can all agree it's been an eventful year but Anglo American is well placed for the longer term."
Chief Executive Mark Cutifani said safety remains its most pressing challenge, reflecting on the loss of two staff members in South Africa among its 95,000-strong team. "We can never say we've had a good year unless we have had zero fatal incidents," he said.
Copper, PGMs and crop nutrients are all sectors targeted for future growth, as Anglo American targets carbon neutrality by 2040. Q4 Production highlights are listed below.
Newmont acquires Canada’s GT Gold in $325mn deal
Newmont, the world’s biggest gold miner, has acquired Canada’s GT Gold in a deal worth $325mn. The gold giant now controls the Tatogga gold-copper project in the Traditional Territory of the Tahltan Nation.
“With the acquisition of GT Gold and the Tatogga project in the highly sought-after Golden Triangle district of British Columbia, Canada, Newmont continues to strengthen our world-class portfolio,” commented Newmont President and CEO Tom Palmer.
“We look forward to continuing to build a respectful and meaningful relationship with the Tahltan Nation, including the community of Iskut. The relationships we have with Indigenous communities, First Nations and host communities are critical to the way we operate. We will partner with the Tahltan Nation at all levels, and with the Government of British Columbia to ensure a shared path forward as the Company understands and acknowledges that Tahltan consent is necessary for advancing the Tatogga project.”
Newmont’s acquisition includes the Tatogga project, comprised primarily of the Saddle North deposit, which has the potential to contribute future significant gold and copper annual production. There are also further exploration opportunities beyond the known deposits at Saddle North within the land package. The Tatogga project adds to Newmont’s existing interest in the prospective Golden Triangle through the company’s 50% ownership in the Galore Creek project.
Newmont is the world’s leading gold company and a producer of copper, silver, zinc and lead. A world-class portfolio of assets, prospects and talent is anchored in favourable mining jurisdictions in North America, South America, Australia and Africa. The American miner is celebrating its 100th anniversary this month.
With gold prices on the rise, the last six months has seen gold industry M&A activity accelerating. A recent Mckinsey report, advises that the industry need to be mindful of mistakes made during the previous gold price boom, when growth was chased unidirectionally by several companies.