Mining house, Anglo American said today, it will still pay dividends to shareholders despite the uncertainty created by COVID-19 – due to its strong liquidity position which includes $6 billion in the bank.
The company, in a statement, said dividends in relation to the second half of 2019 are due to be paid as planned on 7 May subject to shareholder approval at the annual general meeting scheduled for early May.
The group said it had liquidity of $14.5 billion at the end of March, with more than $6 billion of cash, including the proceeds from $1.5 billion of US bond issuances.
Anglo American CEO, Mark Cutifani, said the company will continue with its balanced capital allocation strategy.
“Anglo American is a resilient and diversified metals and minerals business with a portfolio of attractive growth options spanning different products and time horizons,” Cutifani said.
“We are acting to protect our optionality through this uncertain period and will continue to act in the best interests of our shareholders, our employees, customers and our broad range of stakeholders across society.”
The company said it has been forced to cut 2020 production due to COVID-19 disruptions.
The group cut its 2020 diamond production by 7 million carats, platinum by around 500 000 ounces, and palladium by 200 000 to 400 000 ounces. In addition, the output thermal coal guidance has been slashed by 4 million metric tons.
