Anglo American plc: history, ownership, mission, how it works & makes money

A Brief History of Anglo American plc

Anglo American plc, founded in 1917, is one of the world's largest mining companies, known for its diverse portfolio including diamonds, copper, platinum, and iron ore. Initially established by Sir Ernest Oppenheimer in South Africa, it has evolved significantly over the decades.

In the early years, Anglo American primarily focused on diamond and gold mining. The company acquired the De Beers diamond company in the 1920s, solidifying its position in the diamond market. By 1945, Anglo American had diversified its operations, investing in coal, base metals, and other minerals.

During the 1960s and 1970s, Anglo American expanded its operations internationally, entering markets in North and South America, as well as Australia. The company's revenue during this period saw substantial growth, with total revenues reaching approximately £1.68 billion in 1970.

As of 2022, Anglo American reported a total revenue of approximately £40.8 billion, with a net profit of around £9.5 billion. The company has several key operating segments, including Platinum, Diamonds, Copper, and Iron Ore, which contribute significantly to its overall financial performance.

The following table summarizes key financial metrics for Anglo American plc over recent years:

In 2021, Anglo American demonstrated strong recovery post-COVID-19 pandemic, with an increase in demand for metals driven by global economic activity. The company benefited from high commodity prices, particularly in metals such as copper and platinum, leading to their expansion strategies and capital investments in sustainable mining operations.

Anglo American's commitment to sustainability is evident in its goal to halve its greenhouse gas emissions by 2030, aligning with global standards and investor expectations. Their ambitious plans include investing over $5 billion in renewable energy projects in the coming years.

The company is also active in community development, generating approximately $1.2 billion in social investments in 2021, aiming to uplift local communities across its operations.

Recent stock performance indicates a volatile market, with shares ranging from a low of around £24 to highs near £37 in 2022. As of October 2023, Anglo American's stock trades at approximately £32.50, reflecting ongoing investor interest amid fluctuating commodity prices.

Moving forward, Anglo American is focused on enhancing operational efficiencies and driving growth through innovation in mining techniques and technology. The company's strategic initiatives aim to solidify its market position while addressing environmental and social governance (ESG) challenges inherent in the mining industry.

A Who Owns Anglo American plc

Anglo American plc is a prominent mining company headquartered in London, United Kingdom, with a diverse portfolio of assets across various minerals. As of the latest available data, the company's ownership structure is characterized by a mixture of institutional investors, private shareholders, and its own employee share schemes.

According to the company’s 2022 annual report, approximately 88.06% of Anglo American's shares are held by institutional investors. These include major asset management firms and pension funds, which typically invest on behalf of their clients. Here’s a breakdown of the largest shareholders:

In terms of individual ownership, Anglo American has various private shareholders who collectively hold a smaller percentage of the company. These shareholders contribute to the remaining 11.94% of the ownership structure. The company also operates an employee share scheme, which allows employees to have stakes in the company, fostering a sense of ownership and aligning their interests with those of other shareholders.

Geographically, the majority of share ownership is concentrated in the UK, with significant holdings in North America and Europe as well. Specifically, approximately 60% of shares are held by UK-based investors, while 25% are held by investors in North America and 15% in Europe.

As of the end of Q3 2023, Anglo American's market capitalization stood at approximately £19 billion. This valuation reflects the company's strong performance in metals and mining, driven by a global demand for minerals such as copper, diamonds, and platinum. Anglo American's stock was trading around £25.70 per share, with a year-to-date performance showing a return of approximately 12%.

Furthermore, Anglo American's dividend policy has been attractive to investors; in 2022, the company declared a total dividend of £2.20 per share, representing a yield of around 8.6% based on year-end share price. The company emphasizes returning value to its shareholders while also investing in sustainable practices across its operations.

Overall, Anglo American plc presents a robust ownership structure bolstered by strong institutional backing, which underpins the company's strategic decisions and market confidence.

Anglo American plc Mission Statement

Anglo American plc aims to create sustainable value through the extraction and processing of natural resources. Their mission revolves around delivering superior shareholder returns while ensuring long-term sustainability for the communities in which they operate. With a focus on innovation, operational excellence, and responsible mining practices, the company seeks to meet the growing demand for minerals and metals globally.

The company's operational focus is on key commodities such as copper, platinum group metals, diamonds, iron ore, and coal. In 2022, Anglo American reported a total revenue of $41.8 billion and a profit after tax of $9.1 billion, highlighting their strong financial performance and commitment to stakeholder value.

In addition to its financial milestones, Anglo American places significant emphasis on sustainability. The company aims to achieve a 30% reduction in greenhouse gas emissions by 2030 compared to 2016 levels. Their commitment to sustainability is further evidenced by their investments in renewable energy projects, with the goal of sourcing 100% of their energy from renewable sources by 2040.

Anglo American also prioritizes community engagement, focusing on building relationships that enhance local welfare and contribute to sustainable development. In 2022, the company invested over $230 million in community development programs across various regions where they operate, underscoring their dedication to social responsibility.

Overall, Anglo American's mission statement reflects a balanced approach to profitability, sustainability, and community engagement, positioning the company as a leader in the mining sector focused on long-term growth and responsible resource management.

How Anglo American plc Works

Anglo American plc is a global mining company based in Johannesburg, South Africa. It is involved in the extraction and processing of a range of minerals, operating across multiple commodity sectors which include diamonds, copper, platinum group metals (PGMs), iron ore, and nickel. As of 2023, the company remains one of the world's largest mining firms.

The operational performance of Anglo American can be assessed through its production and financial metrics. For the financial year ended December 2022, Anglo American reported an underlying EBITDA of $11.7 billion, compared to $13.6 billion for 2021. The company’s net profit stood at $6.3 billion, reflecting a decrease from $8.0 billion the previous year.

Anglo American's diversified portfolio allows it to mitigate risks associated with commodity price fluctuations. The key commodities produced include:

The revenue generated from these operations is critical for Anglo American’s growth strategy. For 2022, the company reported total revenue of $39.5 billion, down from $45.1 billion in 2021, largely due to lower commodity prices and production volumes.

Anglo American has a strong focus on sustainability and aims to achieve net zero carbon emissions by 2040. In 2022, the company invested $1.4 billion in greener technologies and projects to support this goal. This is part of their broader environmental, social, and governance (ESG) strategy.

In terms of market performance, Anglo American plc's stock price fluctuated significantly throughout 2022. The share price opened at $33.50 at the beginning of the year and hit a low of $26.00 before closing at approximately $30.00 by the end of December 2022.

Dividend payouts are another critical aspect of Anglo American’s financial appeal. For the year 2022, the company declared a total dividend of $2.28 per share, compared to $2.67 in 2021. This reflects the company’s strategy to return value to shareholders while maintaining adequate funding for future investments.

The Anglo American group operates in various geographical regions, including:

Overall, Anglo American's operational model combines the extraction of diverse mineral commodities, financial prudence, and commitment to sustainability to create a resilient business capable of navigating the complexities of the global mining industry.

How Anglo American plc Makes Money

Anglo American plc is a diversified mining company, with major operations in the extraction and production of a variety of minerals, including diamonds, copper, platinum group metals, and iron ore. In 2022, the company reported a total revenue of approximately $39.2 billion, driven primarily by its diverse commodity portfolio.

The following table outlines the revenue contributions from different segments in 2022:

The company's largest revenue segment is iron ore, contributing around 38.8% of total revenue. The Minas-Rio project in Brazil is a key asset, with a production capacity of approximately 26.5 million tons per year. Market demand for iron ore has been strong, particularly from China, which has historically been the world's largest consumer.

Copper is another significant revenue generator for Anglo American, with a reported revenue of $10.7 billion in 2022. The company has major copper operations in Chile, such as the Los Bronces mine, which has a production capacity of about 400,000 tons per year.

Diamonds, while a smaller segment, are also important for the company. In 2022, the diamond division earned $4.1 billion, influenced by a recovering luxury market post-pandemic. The company operates the De Beers Group, which manages a significant portion of diamond production through mines in Botswana, Namibia, and South Africa.

Anglo American's platinum group metals segment also plays a crucial role, generating $9.2 billion in revenue. The company is among the world's top producers of platinum and palladium, essential for automotive catalytic converters. The production comes primarily from the company's operations in South Africa.

Additionally, Anglo American uses its operational efficiencies to maintain profitability. The company reported a net profit of approximately $12.5 billion in 2022. This was largely due to robust commodity prices and strategic cost management, allowing the company to achieve an EBITDA margin of 38.7%.

In 2023, Anglo American continues to focus on sustainability and reducing its carbon footprint, aiming to invest around $1 billion in renewable energy projects. The company plans to cut its operational emissions by 30% by 2030, reflecting a broader industry trend towards responsible mining practices.

Overall, Anglo American plc's revenue generation is closely tied to global market dynamics, commodity prices, and operational efficiencies, making it a key player in the mining sector.