Anglo American has slipped to a net loss of $672m in H1 2024, from a $1.26bn net profit in the same period of the previous year.
This loss was primarily the result of a $1.6bn impairment charge related to the company’s Woodsmith crop nutrients project in the UK, where the company has decided to decelerate development efforts.
Revenue for H1 2024 reached $14.46bn, reflecting an 8% decrease from the $15.67bn reported in H1 2023.
The company's underlying EBITDA also fell during this period by 3% to $4.98bn from $5.11bn.
As of 30 June 2024, Anglo American's net debt stood at $11.1bn.
The company has declared an interim dividend of $0.42 per share, a decrease from $0.55 per share distributed a year earlier.
Anglo American remains committed to cost efficiency and capital expenditure reduction, targeting approximately $1.7bn in cost savings and a $1.6bn decrease in capex over the 2024–26 period.
Anglo American CEO Duncan Wanblad said: “I am very encouraged by a strong operational performance that delivered steady volumes and a 4% improvement in unit costs, while still facing weak cyclical markets for PGMs [platinum group metals] and diamonds.
“We are on track to reduce our annual run rate costs by $1.7bn and reduce capital spend by $1.6bn over the 2024–26 period. We are moving at pace to create a much more agile and structurally profitable mining company focused on our exceptional quality copper and premium iron ore businesses, which both continue to perform very strongly, while maintaining our growth optionality in crop nutrients.
“Underlying EBITDA for the half year of $5bn at a 33% EBITDA margin reflects a 10% lower product basket price, partly offset by a 4% improvement in unit costs, with broadly flat production volumes.
“Net debt increasing marginally to $11.1bn reflects tight discipline to optimise capital allocation and free cash flow. Our decision to temporarily slow down the Woodsmith crop nutrients project and thereby push out its production timing has resulted in a $1.6bn impairment of the project.”
