Anglo American says FY profit attributable to shareholders $1.6 bln

Says net debt reduced by 34% to $8.5 billion (2015: $12.9 billion), well below $10 billion target

* Says attributable free cash flow of $2.6 billion (2015: $(1.0) billion)

* Says capital expenditure reduced by 37% to $2.5 billion

* Says group underlying ebitda increased by 25% to $6.1 billion, despite a 3% decrease in average prices

* Says profit for financial year attributable to equity shareholders of $1.6 billion (2015: $(5.6) billion)

* Says continue to benefit from performance of a number of other world class assets across bulk commodities of iron ore and coal, as well as nickel

* Says in 2017, capital expenditure will be maintained at $2.5 billion with stay-in-business capital increased to $1.2 billion

* Says operating profit of $1.7 billion increased by $5.8 billion (2015: $4.1 billion loss) while underlying ebitda increased by 25% to $6.1 billion

* Says profit for financial year attributable to equity shareholders of $1.6 billion (2015: $5.6 billion loss) with underlying earnings of $2.2 billion (2015: $0.8 billion)

* Says higher sales volumes at De Beers, following a weaker 2015, materially benefited underlying ebitda

* Says iron ore production at Sishen decreased by 10%, in line with mine’s lower-cost pit configuration

* Anglo american plc – in Chile, copper production at los bronces was 24% lower driven by significantly lower expected grades, adverse weather conditions illegal industrial action

* Says iron ore production from minas-rio increased by 76% as ramp-up progressed

* Says production at Barro Alto is now close to nameplate capacity, with nickel output increasing by 47% year-on-year

* Says unit cash costs at De Beers decreased by 19% as a result of cost savings, favourable exchange rate movements and a change in production mix

* Says unit costs at coal Australia decreased by 7%, following significant cost-reduction initiatives

* Says at platinum, unit costs also decreased by 12%, owing mainly to a weaker south african rand and cost containment

* Says nickel unit costs declined by 19%, chiefly attributable to increased production volumes from barro alto

* Says dividend payments remained suspended for 2016 given need to conserve cash and reduce debt

* Board recommended that, upon reinstatement, co to adopt payout ratio to provide shareholders with exposure to improvements in commodity prices

* Says currently expected that dividend payments will be reinstated for end of 2017 (payable in 2018)

* Says us expected to continue to be main driver of global growth in 2017

* Says extent of global growth will, however, be dependent upon a number of macro-economic factors, including new administration in us

* Says extent of global growth depends on strength of us dollar, China economic performance, indian demonetisation, chinese new year retail season

* Says rough diamond demand is expected to normalise in 2017, reflecting underlying consumer and retail demand

* Says forecast diamond production (on a 100% basis, except gahcho kue on an attributable 51% basis) for 2017 is expected to be in range of 31-33 million carats

* Says platinum production guidance (metal in concentrate) is 2.35-2.4 million ounces for 2017 (previously 2.4 million-2.5 million ounces)

* Says year-on-year platinum production from own-managed mines is expected to remain flat at c. 960,000 ounces.

* Says kumba production guidance for Sishen is 27-28 mt for 2017,

* Says kumba has a target unit cost of c. $30/tonne. Full year total sales volume guidance for 2017 is 40-42 mt

* Says at Kolomela, annual production is expected to be 13-14 mt for 2017 Source text for Eikon: Further company coverage:

 

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