Anglo's H1 operating profit falls 10% after strike, lower commodity prices


Anglo American (OTCPK:AAUKF, OTCPK:AAUKY) says its H1 net profit more than tripled to $1.46B vs. $403M in the impairment-weighed H1 of last year, but underlying operating profit fell 10% to $2.93B due to lower prices across most of its commodities and a 40% drop in platinum output from the five-month-long strike at its South African platinum operations.

CEO Mark Cutifani says Anglo expects to raise $3B-$4B from assets disposals over the next two years, while stressing the company is "not in a fire sale mode."

H1 return on capital slipped to 10% from 11% a year earlier, but Cutifani says he is more confident about hitting the company's 15% target by 2016 than a year ago.

Says the long-delayed Brazilian Minas Rio project remains on track to ship its first iron ore by the end of 2014.

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