London: Anglo American Plc, the owner of stakes in the world's biggest platinum and diamond producers, reported a bigger-than-expected 2009 profit and said it expects to resume dividend payments this year.
London-based Anglo achieved $1.6 billion (Dh5.87 billion) in cost savings, compared with a target of $2 billion by 2011, it said Thursday in a statement. So-called underlying earnings per share of $2.14 beat the $1.99 median of 24 forecasts Bloomberg compiled.
"We've made significant progress across the board, delivering on exceeding our targets," Chief Executive Officer Cynthia Carroll told reporters. "We expect to resume the dividend in respect of 2010."
Carroll aims to regain investor confidence, after halting dividends a year ago, by selling assets, and slashing jobs and debt. She cut more than 23,000 jobs last year and is selling a South African steel mill and zinc assets to focus on the iron ore and copper needed in rapidly growing Asia. Credit Suisse and Liberum Capital Ltd had said she may pay a 2009 dividend.
"This earnings beat was driven by strong performance in copper, coal and iron ore" and savings were "impressive," Liberum analysts wrote in a note yesterday. "The headline disappointment for us is no dividend re-start."
Sales of assets
The mining company said last week it agreed to sell parts of its Tarmac construction materials unit for $400 million. Last year, it raised $2.4 billion from sales of assets, mainly from a stake in AngloGold Ashanti Ltd.
Anglo fell 17 per cent in London trading on February 20 last year when it suspended dividends. Rival London-listed mining companies Rio Tinto Group and Xstrata Plc resumed dividends last week after restoring their finances by selling shares through rights offers. Xstrata's 41 per cent annual profit drop and Rio's 39 per cent slide also beat analysts' expectations.
