Strong Anglo American set to return €2.28bn to investors

ANGLO American, the world’s third-largest miner, said yesterday it would return $3 billion (€2.28bn) to investors as it posted a 46% rise in annual net profit, below the average forecast.

Chief executive Tony Trahar, who steps down from the role at the end of the month, said he saw “a supportive climate for commodities in the near term”.

Mr Trahar also told reporters that Anglo had received approval in principle, from South African authorities, to spin off Mondi — its packaging and paper business — by the middle of the year, with dual listings in Johannesburg and London.

The gold, platinum and copper specialist made a net profit of $5.47bn in 2006, on revenue up 12% at $38.6bn. The final dividend was raised 21% to 75 cents, making the total dividend 20% higher at 108 cents.

Booming global demand led by China’s rapid industrialisation has sent the price of metals such as copper, zinc and aluminium soaring, taking miners’ profits with them and leading to big cash returns to investors and raised dividends.

Anglo American bought back $7.5bn of shares last year.

Analysts’ average forecast was for $5.88bn net profit with the 12 forecasts found by Reuters estimates ranging from $5.41bn to $7.88bn.

UBS analysts said in a broker note Anglo American investors could expect a further stock buyback on top of the $3bn.