Integrated Annual Report 2021
Our Purpose
Re-imagining | Revenue | Underlying EBITDA◊ | |||||||||||
Group performance | |||||||||||||
mining to | $41.6 bn | $20.6 bn | |||||||||||
improve | 2021 | 2021 | |||||||||||
$41.6 bn | $20.6 bn | ||||||||||||
2020 | 2020 | ||||||||||||
$25.4 bn | $9.8 bn | ||||||||||||
people's lives | |||||||||||||
Operating profit | Underlying earnings per share◊ | ||||||||||||
Transforming the very nature of | $17.6 bn | $7.22 | |||||||||||
mining for a safer, smarter, more | 2021 | 2021 | |||||||||||
$17.6 bn | $7.22 | ||||||||||||
sustainable future. | |||||||||||||
2020 | 2020 | ||||||||||||
$5.6 bn | $2.53 | ||||||||||||
Using more precise technologies, less energy and | |||||||||||||
less water, we are reducing our environmental | |||||||||||||
footprint for every ounce, carat and kilogram of | Profit attributable to equity | Net debt◊ | |||||||||||
precious metal or mineral. | shareholders |
We are combining smart innovation with the utmost consideration for our people, their families, local communities, our customers, and the world at large - to better connect precious resources in the ground to all of us who need and value them.
And we are working together to develop better jobs, better education and better businesses, building brighter and healthier futures around our operations in our host communities and ultimately for billions of people around the world who depend on our products every day.
$8.6 bn
2021 $8.6 bn
2020 $2.1bn
Total dividends per share
$4.19
2021 $4.19
2020 $1.00
$3.8 bn
2021 $3.8 bn
2020 $5.5 bn
Attributable free cash flow◊
$7.8 bn
2021 $7.8 bn
2020 $1.2 bn
Group attributable ROCE◊ | Number of fatalities |
Cover image
At our Sakatti polymetallic project in northern Finland, women make up 43% of the workforce. Featured is safety, health and environment (SHE) field co-ordinator Liisa Kropsu during winter drilling activities.
43% | 1 | ||||||||
2021 | 2021 | ||||||||
43% | 1 | ||||||||
2020 | 2020 | ||||||||
17% | 2 | ||||||||
Total recordable case frequency | Level 4-5 environmental incidents | ||||||||
rate (TRCFR) | |||||||||
2.24 | 0 | ||||||||
2021 | 2021 | 0 | |||||||
2.24 | |||||||||
2020 | 2020 | 0 | |||||||
2.14 | |||||||||
- Alternative Performance Measures
Words with this symbol ◊ are defined in the Alternative Performance Measures section of the Integrated Annual Report on pages 270 to 275.
Contents
Portfolio
22
Innovation
30
People
50
Strategic Report
- Our business at a glance
- Chairman's statement
- Chief Executive's statement
- Our Business Model
- Purpose to value
12 Creating value for all stakeholders
- How we make decisions
- Understanding our stakeholders
- Our material matters
- Looking at global trends
- Reflecting stakeholder views in our Board decision making
- Key decisions made in 2021
- Portfolio
- Innovation
- People
- Capital allocation
- Managing risk effectively
68 Key performance indicators
- Marketplace review
- Group financial review
- De Beers
- Base Metals
86 Platinum Group Metals (PGMs)
- Bulk Commodities
- Crop Nutrients
- Corporate and other
101 Non-financial information disclosures and footnotes
102 Disclosures related to the recommendations of the
TCFD
104 Streamlined energy and carbon reporting
Governance
- Chairman's introduction
- Directors
- Executive management
114 Board roles and responsibilities
- Board operations
- Board activity
120 Board effectiveness
122 Stakeholder engagement
124 Sustainability Committee report
126 Nomination Committee report
128 Audit Committee report
135 Directors' remuneration report
139 At a glance
142 Directors' remuneration policy
146 Annual report on directors' remuneration
162 Statement of directors' responsibilities
Financial statements and other financial information
- Independent auditors' report
- Primary statements
177 Notes to the financial statements
256 Financial statements of the Parent Company
- Summary by operation
- Key financial data
262 Exchange rates and commodity prices
Ore Reserves and Mineral Resources
- Estimated Ore Reserves
- Estimated Mineral Resources
Other information
268 Glossary of terms
270 Alternative performance measures
276 Production statistics
- Quarterly production statistics
- Non-financialdata
- Directors' report
- Shareholder information
IBC Other Anglo American publications and legal disclaimers
Basis of reporting
The Anglo American plc Integrated Annual Report for the year ended 31 December 2021 is produced in compliance with UK regulations. Additionally, we have compiled this report using the Guiding Principles and Content Elements set out in the International Integrated Reporting Council's Framework.Integrated Reporting aims to demonstrate how companies create value sustainably over time, for a range of stakeholders - consistent with Anglo American's Purpose, business approach and strategy. This report, therefore, includes a comprehensive overview of our material matters, in the eyes of our stakeholders, and the impact these matters have on the value we create.
Measuring performance
Throughout the Strategic Report we use a range of financial and non-financial measures to assess our performance. A number of the financial measures are not defined under IFRS so they are termed 'Alternative Performance Measures' (APMs). We have defined and explained the purpose of each of these measures on pages 270-275, where we provide more detail, including reconciliations to the closest equivalent measure under IFRS. These APMs should be considered in addition to, and not as a substitute for, or as superior to, measures of financial performance, financial position or cash flows reported in accordance with IFRS.
Units
'Tonnes' are metric tonnes, 'Mt' denotes million tonnes, 'kt' denotes thousand tonnes, 'Mct' denotes million carats and 'koz' denotes thousand ounces; '$' and 'dollars' denote US dollars and 'cents' denotes US cents.
Forward-looking statements and third-party information
This document includes references to the Anglo American Group, forward-looking statements and third-party information. For information regarding the Anglo American Group, forward- looking statements and such third-party information, please refer to the IBC of this document.
Non-financial information disclosures
Non-financial information in this report includes subsidiaries and joint operations over which the Anglo American Group has management or acts as operator. It does not include independently managed operations, such as Collahuasi and Samancor, nor does it include De Beers' non-managed joint operations in Namibia and Botswana, unless specifically stipulated.
We comply with all relevant non-financial reporting requirements, including those contained in sections 414CA and 414CB of the Companies Act 2006; the Financial Stability Board's Taskforce on Climate-related Financial Disclosures (TCFD); and the Streamlined Energy and Carbon Reporting (SECR) rules. The tables on pages 101-104 are intended to guide stakeholders to where the relevant non-financial information is included within our Strategic Report and other externally available Anglo American plc publications.
Our reporting suite
You can find this report and others, including the Sustainability Report, the Climate Change Report, the Tax and Economic Contribution Report, and the Ore Reserves and Mineral Resources Report, on our corporate website.
- For more information, visit: www.angloamerican.com/investors/annual-reporting
Social channels
AngloAmerican | @angloamerican | Anglo American |
angloamerican | angloamericanplc |
Anglo American plcIntegrated Annual Report 2021 | 01 |
Strategic Report
Our business at a glance
Anglo American is a leading global mining company, with a world class portfolio of mining and processing operations and undeveloped resources, with more than 106,000 people working for us around the world, in 15 countries.
We provide many of the essential metals and minerals that are fundamental to the transition to a low carbon economy and enabling a cleaner, greener, more sustainable world, as well as meeting the growing consumer-driven demands of the world's developed and maturing economies. And we do so in a way that not only generates sustainable returns for our shareholders, but that also strives to make a real and lasting positive contribution to society as a whole.
- For more information, see our Tax and Economic Contribution Report See www.angloamerican.com/tec-report-2021
- Our overview video gives a complete introduction to what we do and our ambitions for the future See https://youtu.be/6TKaHzCT4YY
North America
800 employees(2)
$69 m wages and benefits paid(3) $42 m taxes and royalties(4) $112 m local procurement spend(5)
Canada 1
Brazil
4,100 employees(2)
$120 m wages and benefits paid(3) $524 m taxes and royalties(4) $1,029 m local procurement spend(5)
Peru
750 employees(2)
$57 m wages and benefits paid(3) | Brazil 2 1 | ||||
$22 m taxes and royalties(4) | 1 Peru | ||||
$1,176 m local procurement spend(5) |
3 Chile
Product groups* | Chile |
Diamonds | |
4,300 employees(2) | |
Copper | |
$378 m wages and benefits paid(3) | |
Nickel | |
$959 m taxes and royalties(4) | |
Platinum Group Metals | |
Iron Ore | $1,829 m local procurement spend(5) |
Metallurgical Coal
Manganese
Crop Nutrients
* Number within dot denotes number of operations, shown by product.
02 | Anglo American plcIntegrated Annual Report 2021 |
Base Metals
Diamonds | Copper | Nickel | PGMs | ||||||||||||
$1,100 million | $4,011 million | $320 million | $7,099 million | ||||||||||||
Underlying EBITDA◊ | Underlying EBITDA◊ | Underlying EBITDA◊ | Underlying EBITDA◊ | ||||||||||||
5% | 19% | 2% | 34% | ||||||||||||
Group underlying EBITDA◊ | Group underlying EBITDA◊ | Group underlying EBITDA◊ | Group underlying EBITDA◊ | ||||||||||||
32.3 Mct | 2 greenfield projects | 41.7 kt | 4,299 koz | ||||||||||||
Production (100% basis)(1) | Peru (Quellaveco) and Finland | Production: Nickel | Production: PGMs | ||||||||||||
(Sakatti) | |||||||||||||||
647 kt | |||||||||||||||
Production | |||||||||||||||
Bulk Commodities | |||||||||||||||
Iron Ore | Metallurgical Coal | Manganese | Crop Nutrients | ||||||||||||
$6,871 million | $962 million | $315 million | $(41) million | ||||||||||||
Underlying EBITDA◊ | Underlying EBITDA◊ | Underlying EBITDA◊ | Underlying EBITDA◊ | ||||||||||||
Woodsmith is a greenfield project | |||||||||||||||
33% | 5% | 3.7 Mt | |||||||||||||
Group underlying EBITDA◊ | Group underlying EBITDA◊ | Production: Manganese ore | Corporate and other | ||||||||||||
40.9 Mt | 14.9 Mt | ||||||||||||||
$(3) million | |||||||||||||||
Production: Iron ore - Kumba | Production: Metallurgical | Underlying EBITDA◊ | |||||||||||||
and maps can be found in | |||||||||||||||
22.9 Mt | |||||||||||||||
→ More detailed information | |||||||||||||||
Production: Iron ore - Minas-Rio | the business unit reviews | ||||||||||||||
See pages 76-100 | |||||||||||||||
Finland | |||||||||||||||
United Kingdom | |||||||||||||||
1 | Europe | ||||||||||||||
2,800 employees(2) | |||||||||||||||
$452 m wages and benefits paid(3) | |||||||||||||||
$402 m taxes and royalties(4) | |||||||||||||||
$619 m local procurement spend(5) | Shanghai | ||||||||||||||
Other Africa
6,600 employees(2)
$334 m wages and benefits paid(3) | Singapore | |
$721 m taxes and royalties(4) | ||
$495 m local procurement spend(5) |
Australia/Asia
2,800 employees(2)
$484 m wages and benefits paid(3) $416 m taxes and royalties(4) $1,570 m local procurement spend(5)
2 Botswana | Zimbabwe | 1 | Australia 1 5 | ||||||||
2 Namibia | South Africa | 1 2 | 5 1 | ||||||||
South Africa
41,450 employees(2)
$1,813 m wages and benefits paid(3) $4,049 m taxes and royalties(4) $3,148 m local procurement spend(5)
See page 101 for footnotes.
Anglo American plcIntegrated Annual Report 2021 | 03 |
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Anglo American plc published this content on 25 May 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 26 May 2022 01:05:34 UTC.