Anglo American to cut 6,000 jobs as profit drops, but investors cheer dividend

Shares in Anglo American rose on Friday as investors breathed a sigh of relief that the miner had maintained its dividend, as it posted a 36% drop in first-half underlying earnings before interest and tax amid declining commodity prices.

Anglo reported underlying EBIT of $1.9bn, down from $2.9bn in the same period last year and said a one-off charge of $3.5bn, including $2.9bn from a write-down of the value of its Minas-Rio iron ore project in Brazil, dented its results.

Prices fell across most of Anglo’s products, with the realised price of iron ore down 41%, copper down 18%, platinum down 19%, and coal 15% weaker, although the company said this was partially offset by favourable exchange rates, with both the South African rand and Australian dollar much weaker against the US dollar.

Anglo said it was targeting $500m in costs saving, of which $300 million will be realised from its ongoing core business, through the reduction of 6,000 overhead and other indirect roles.

Chief executive Mark Cutifani said: “I expect the current period of volatile markets and economic uncertainty, fuelled in part by pockets of geopolitical tension, to continue.”

Still, the company maintained its interim dividend at 32 cents.

At 10:39, shares were up 2.4% at 825.80p.