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Anglo American announces a special dividend

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(Kitco News) - Anglo American (AAL:LSE) announced it is to return an additional $2 billion to its shareholders through an on-market irrevocable and non-discretionary share buyback programme of $1 billion. There is also a special dividend of $0.80 per ordinary share, equal to $1 billion.

Mark Cutifani, Chief Executive of Anglo American, said: "We entered this period of strong demand and prices for many of our products with a strong balance sheet and we are therefore in a position to deliver both the investment in our sequence of margin-enhancing growth projects and also return excess cash to our shareholders. Today's additional return of $2 billion demonstrates our applied capital discipline and the Board's confidence in the business."

Stephen Pearce, Finance Director of Anglo American, added: "As a result of our prudent approach to capital allocation, including our commitment to our established base dividend policy of returning 40% of Underlying Earnings to our shareholders, our balance sheet is in a strong position. Aligned with that dividend policy, and as Anglo American continues to deliver outstanding financial performance, we will continue to assess all forms of returns. Given the current levels of cash generation and our balanced approach for discretionary capital across investment and additional shareholder returns, we think it appropriate to return excess cash of $2 billion to shareholders."

He added "Recognising the different preferences of our shareholders, we will split this additional return equally between a share buyback programme and special dividend. Combined with our base dividend of $2.1 billion, today's $4.1 billion return recognises the resilience of our position and brings the cash that we will have returned to shareholders since mid-2017 to $10.3 billion."

Looking at the daily price chart, the share has not looked back since breaking the trendline to the upside. Now the bulls could be looking to target the wave high at 3509. The stocks all-time high is at 3683 and there is some way to go before the price could get to that level but the volume behind the move would need to increase to confirm the commitment of market participants. 

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