Anglo American defends ‘skinny’ dividend payout
Miner says its full-year dividend payment takes account of big spending ahead at its Quellaveco mining project in Peru
Anglo American came under criticism from analysts for being a “bit light” on its annual return to shareholders as it stuck rigidly to its recently unveiled dividend policy. Anglo, a major diversified mining company, has shaved $10bn off its debt in three years as the board implemented a tough turnaround strategy with a far smaller but more productive asset base with a unique offering of diamonds, platinum group metals (PGMs), copper, iron ore, coal and nickel. The company is also heading into a period of spending on growth at its Quellaveco copper project in Peru. Anglo declared a final dividend of $0.51 per share, equivalent to the top end of its dividend policy of paying shareholders up to 40% of underlying earnings in the second half of the year to end-December. The final dividend brought the total return for the year to $1 per share. “It’s a bit churlish maybe to criticise a company for doing what they said they were going to do, but a 40% payout given the strength of the balanc...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.