UK-based mining giant Anglo American has issued its financial results for 2011, reporting a decline in its net profit for the year.
According to the financial results, in 2011 Anglo American's net profit amounted to $6.17 billion, declining by six percent year on year. Revenues increased 11 percent to $36.55 billion compared to 2010. EBITDA was $13.34 billion, up 11 percent year on year. Anglo American's operating profit reached $11.09 billion, increasing by 14 percent compared to the previous year.
Operations of Anglo American were negatively affected by weather disruptions in Queensland, Chile and South Africa. Iron ore production from Kumba Iron Ore's Sishen mine in South Africa decreased by six percent year on year to 38.9 million mt. Metallurgical coal production for export decreased by nine percent compared to 2010 as a result of heavy rainfall and subsequent flooding in late 2010 and in the first quarter of 2011, which resulted in force majeure declarations being in effect until June.
Despite the short-term uncertainty in the global economy, particularly in Europe, Anglo American's longer-term outlook remains strong. Prices for Anglo American's commodities are expected to be robust due to widespread supply constraints, which are likely to affects costs.