Miner Anglo American (LSE: AAL) reported on Thursday its pretax profit crashed to $3.59 billion in 2023, down from $9.48 billion in 2022. The company blamed weaker commodity prices and rising costs for the 62% profit decline.
Revenue fell 13% to $30.65 billion from $35.12 billion the previous year.
Shares in Anglo American rallied 5.5% at the open before giving back some gains. At the time of writing, shares were up 3.2% trading at 1,772.80 pence.
Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) dropped 31% to $9.95 billion even as production volumes increased 2%.
The miner announced it would acquire Vale’s Serra da Serpentina project in Brazil, with the deal expected to be completed in Q4 2024.
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It cut its total dividend by more than half to 96 cents per share. Earnings per share plunged to 23 cents from $3.72 last year.
CEO Duncan Wanblad said demand trends for metals and minerals “have rarely looked better”, but it faces near-term challenges in diamonds and platinum group metals.
2024 production guidance sees lower diamond and platinum group metal output but growth in copper, coal, nickel and iron ore volumes.
