Anglo American PLC released its year-end financial report for the year ended 31 December 2023. The report highlighted a production increase and strong cost performance, which were outweighed by cyclical lows for PGMs and diamonds. The company's Quellaveco operation fully ramped up and produced 319,000 tonnes of copper at a competitive unit cost. Despite a 31% decrease in underlying EBITDA, the company managed to contain the effect of high inflation on costs and reduce annual run rate costs by $1 billion and capital spend by $1.6 billion over the next three years. The profit attributable to equity shareholders was $0.3 billion, and the net debt stood at $10.6 billion, with a leverage of 1.1x. The company declared a total dividend of $1.2 billion for FY 2023, consistent with its 40% payout policy.
Duncan Wanblad, Chief Executive of Anglo American, emphasized the company's focus on reducing complexities and managing assets, capital, and portfolio dynamically for value. He also highlighted the company's commitment to safety and its efforts to ensure that every colleague returns home safe and well each day. The report mentioned that three colleagues died during the year following two accidents, and the company extended its deepest condolences to their families, friends, and colleagues. The company achieved its lowest ever injury rate in 2023.
The report also provided an overview of the company's operational performance, including the ramping up of the Quellaveco operation, performance records set by Minas-Rio, and the reconfiguration of the mine plan at Los Bronces. The report acknowledged the challenges faced by the PGMs and diamonds businesses due to the immediate macro picture but expressed optimism about the demand trends for metals and minerals. The company is focused on reducing complexities, managing assets, capital, and portfolio dynamically for value, and identifying opportunities with adjacent assets where significant value can be unlocked.
The financial performance for the year ended 31 December 2023 showed a 13% lower product basket price and a 4% unit cost increase, partially offset by a 2% volume growth. The net debt increased to $10.6 billion, reflecting the growth investments made through the cycle. The company proposed a final dividend of $0.41 per share, in line with its 40% payout policy. The report also included sustainability performance indicators based on the company's seven pillars of value: safety and health, environment, socio-political, people, production, cost, and financial.
In summary, the year-end financial report for 2023 outlined the company's operational and financial performance, its commitment to safety, and its strategic focus on managing assets, capital, and portfolio dynamically for value. Despite challenges in the PGMs and diamonds businesses, the company remains optimistic about the demand trends for metals and minerals and is focused on unlocking significant value from its assets.
For more detailed financial information and sustainability performance indicators, readers can refer to the full report on the company's website.