Anglo pays super-dividends, but still enough money for community projects - CEO
Anglo American has unveiled a special dividend and share buy-back programme.
It sees the mining giant return $4.1bn to shareholders.
Bruce Whitfield discusses this strategy with Anglo American CEO Mark Cutifani.
We have announced our 2021 Interim Results:— Anglo American (@AngloAmerican) July 29, 2021
✅ EBITDA: $12.1bn
📈 Interim dividend: $2.1bn
📊 Additional return (50% buyback / 50% special dividend): $2bn
🤝Endowment to the Anglo American Foundation: $100mn.
Learn more here: https://t.co/xfHRpGyhL3 #AngloAmericanResults pic.twitter.com/Q04fmx9XNT
Chief executives in years past would have used bumper markets to expand operations and buy assets instead of paying out huge dividends, Whitfield comments.
Cutifani notes that Anglo is one of the few large miners that has in fact invested in new projects.
These include a number of investments in South Africa, the DHMS project at Kumba Iron Ore among them.
We will also continue to invest in the platinum business... We want to invest in energy...Mark Cutifani, CEO - Anglo American
We're doing a whole range of things, so we're growing 20% in the next three years.Mark Cutifani, CEO - Anglo American
But we're doing one big project at a time, so we're not making the mistake of over-extending ourselves.Mark Cutifani, CEO - Anglo American
Cutifani emphasizes that Anglo American also prioritises its social responsibility.
At the same time, as a consequence of reducing our costs by 30%, we're able to pay more in a dividend and as well as that, we've allocated $100 million - about R1.5 billion - to go into the Anglo American Foundation which will go into charities and other projects consistent with our sustainable mining plan...Mark Cutifani, CEO - Anglo American
... and we've allocated more money to help with Covid and support the government in other initiatives on vaccination rollout progammes and we've contributed more money in terms of our collaborative regional development work.Mark Cutifani, CEO - Anglo American
We've taken our community responsibilities as importantly as we take our shareholder responsibility so we're making sure that everybody shares as much as possible in our good work and the benefits that come from that.Mark Cutifani, CEO - Anglo American
Cutifani says he's still an optimist on South Africa, highlighting how people stood together in the face of the recent unrest.
I think it's terrible the reaction [to Zuma's imprisonment] of certain people that really did imperil the country but, more importantly, it's the average South Africans that stood up and protected assets... that was the good thing that came out...Mark Cutifani, CEO - Anglo American
To be honest, if that's the best bad people can do... then South Africa's democracy will continue to improve and grow from here going forward.Mark Cutifani, CEO - Anglo American
Listen to the in-depth interview with Cutifani below:
Source : angloamericankumba.com.