Anglo misses estimates, reinstates dividend

30th Jul 2010 07:02

Anglo American's interim results came in slightly below analyst forecasts but the mining giant said it remains confident about its prospects.The group also announced that it reinstated its dividend payments with an interim dividend of 25 cents per share.Revenue came to $15.02bn in the six months ended 30 June compared with $11.13bn last time, while EBITDA rose to $5.41bn from 2.99bn previously. Operating profit more than doubled to $4.36bn.The figures missed Panmure Gordon's forecasts. The broker predicted first half revenue of $16.15bn, EBITDA of $5.94bn and operating profit of $4.93bn. Production of export thermal coal from South Africa decreased by 6% as a result of heavy rains and geological challenges, while Cerrejón production was in line with 2009 and Australia increased thermal coal production by 5%. Copper production was maintained at 2009 levels. Chief executive Cynthia Carroll said: "The short term outlook for the world economy has become more uncertain in recent months, with certain less favourable leading economic indicators." "However, in the medium to long term, we remain confident about prospects for Anglo American with the process of industrialisation and urbanisation in China, India, Brazil and other emerging countries continuing to drive demand for our key commodities."Ambrian kept its buy stance on the miner but still rates Rio Tinto as its Top Pick in the sector.Killik said it remained positive on the long-term outlook for the company and the sector, but in the short term it does not see any compelling reasons to buy the shares.