In This Article:
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EBITDA Margin: Stable at 30% despite a 10% fall in basket price.
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Full Year EBITDA: $8.5 billion.
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Cost Savings: Achieved $1 billion in 2024, with a run rate of $1.3 billion, aiming for $1.8 billion by end of 2025.
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Net Debt: Maintained flat at $10.6 billion.
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Net Debt to EBITDA Ratio: 1.3 times.
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Final Dividend: $0.22 per share, total 2024 dividend $0.64 per share.
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Revenue: 12% lower, driven by a 10% reduction in basket price.
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Cash Conversion: 97% with a $1.8 billion working capital inflow.
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Production Guidance: Met 2024 guidance across all businesses.
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Iron Ore EBITDA Margin: 40%.
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Copper EBITDA Margin: 50%.
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De Beers Impairment: $2.9 billion due to market outlook adjustments.
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Nickel Business Sale: Agreed for up to $500 million.
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Steelmaking Coal Sale: Agreed for up to $4.8 billion.
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Platinum Group Metals (PGM) Demerger: On track for mid-2025, with a 19.9% stake retained initially.
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Effective Tax Rate: 41% for 2024.
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Production Costs: 21% decrease in total operating costs across copper assets in Chile.
Release Date: February 20, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Anglo American PLC (AAUKF) maintained a stable EBITDA margin of 30% despite a 10% drop in basket prices, demonstrating effective cost management.
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The company achieved $1 billion in cost savings in 2024, with a run rate of $1.3 billion, ahead of schedule, and is on track to reach $1.8 billion by the end of 2025.
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Anglo American PLC (AAUKF) successfully simplified its portfolio, including the sale of its steelmaking coal business for up to $4.8 billion and its nickel business for up to $500 million.
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The company announced a strategic partnership with Codelco to develop a joint mine plan for Los Bronces and Andina, expected to create at least $5 billion in pretax value without significant capital expenditure.
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Anglo American PLC (AAUKF) maintained net debt flat at $10.6 billion despite lower commodity prices, reflecting strong cash management and financial discipline.
Negative Points
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The company reported three workplace fatalities in 2024, highlighting ongoing safety challenges.
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Anglo American PLC (AAUKF) faced a challenging diamond market, with De Beers experiencing a significant decline in rough diamond sales due to high midstream inventory levels and weak consumer demand in China.
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The company recorded a $2.9 billion impairment at De Beers, reflecting a slower recovery in China and increased competition from lab-grown diamonds.
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Production was 7% lower year-on-year, largely due to the Grosvenor fire and actions at De Beers to focus on value over volume.
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The company faces ongoing challenges in the nickel market, with the sale of its nickel assets occurring in a tough market environment.