Analyst Note| Mathew Hodge, CFA |
Anglo American’s first-half 2021 result was powered mainly by buoyant iron ore and platinum group metals prices. Near-record copper prices and a strong recovery in diamond profitability also helped. Adjusted net profit after tax of USD 5.3 billion was up substantially from USD 0.9 billion in first-half 2020 but was in line with our expectations. Our full-year 2021 net profit forecast is little changed at USD 9.2 billion. At the segment level, EBITDA nearly quadrupled to USD 12.1 billion from USD 3.4 billion a year ago. Iron ore and platinum were the heavy lifters, contributing USD 8.3 billion combined versus just USD 2.4 billion last year. Copper also nearly tripled EBITDA to USD 1.9 billion while diamonds increased to USD 0.6 billion from a break-even level last year.