Anglo American raises dividend payout after bumper earnings growth

Anglo American has confirmed it will raise its dividend payout by 27% for the six months to June after reporting a 19% jump in core earnings for the first half of 2019.

The UK-based mining giant also declared a bonus return for its shareholders via a buyback, which will be made in two US$500 million tranches starting immediately and ending in March 2020.

“With a strong balance sheet in place, we then consider the appropriate balance of options for any discretionary capital, in terms of growth investments and additional returns,” said chief executive Mark Cutifani.

“Today’s announcement of a share buyback programme demonstrates our applied discipline and the board’s confidence in the business,” he continued. Anglo had already returned $3.4 billion in cash to shareholders prior to today’s dividend announcement.

The firm reported earnings before interest, tax, depreciation, and amortisation of $5.45 billion for the first half of 2019, with revenue climbing 8% to $14.77 billion. Attributable cash flow dropped by 17% to $1.33 billion in the period.

However, Anglo also reported that three employees had died in ‘workplace safety incidents’ during the first half of the year, along with two incidents in Chile that led to loss of 10 lives. The incidents are being ‘urgently’ investigated.