Anglo hikes payout to investors

[Scorpio]

22/02/2006 09:30 AM

Anglo earnings seen up 37%

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London - Anglo American plc, the world's third-largest miner, posted a 39% rise in 2005 earnings, buoyed by soaring metal prices, the group said on Wednesday.
Anglo was also increasing its capital return to $1.5bn from $1bn.

Anglo posted net profit of $3.7bn for 2005 and said in a statement it would sell part of its stake in AngloGold Ashanti through a public secondary offering in coming months.

In addition, Anglo said it would list its Mondi packaging and paper business in London in 2006/07, and the first phase of a strategic review of its Tarmac business had identified businesses in Germany, Hong Kong and Britain for disposal.

Anglo said the sale of its stake in steelmaker Highveld Steel was progressing.

On October 26, Anglo said it would return up to $1bn to investors in 2006 as it culls several subsidiaries to focus on core mining units. The extra $500m return announced on Wednesday will be paid as a special dividend.

Anglo said that while cost pressures had continued last year, they had been offset by cost savings and efficiencies of $730m.

Chief executive Tony Trahar said: "The outlook for the global economy is encouraging, with leading indicators showing signs of continuing global growth and strong underlying demand for our products.

"If prices and demand continue at or near current levels, the group should have another strong year."