After a record 2021, Anglo American earnings had a reality check in 2022 as top line revenue and underlying EBITDA receded in line with lower metals prices.
Anglo American’s results shared many similarities with Rio Tinto‘s result also released this week. The impact of Chinese restrictions serious curtailed metals prices and ravaged the top line of major diversified miners.
Anglo American recorded an average Platts 62% Fe CFR China iron ore price of $120 in 2022 compared to $160 in 2021.
Lower metal prices saw Anglo’s revenue fall to 15% to $35bn and underlying EBITDA sank 30% to $14.5bn.
“Anglo is the latest miner to see its top and bottom line take a hefty hit, but its worth taking a step back and remembering the comparable year, 2021, saw record highs for a range of key commodity prices,” said Matt Britzman, equity analyst at Hargreaves Lansdown.
“At current levels, prices are still plenty high enough for miners like Anglo to make a good chunk of cash. Return on capital employed of 30% over the latest year was double the groups through the cycle target of 15%, so times are still good.”
“Looking to the future, it’s pleasing to hear positive news from the groups latest copper project, the Quellaveco mine in Peru. First production began last year and it’s ramping up, expected to reach full capacity over the course of this year.”