Analyst Note| Mathew Hodge, CFA |
No-moat Anglo American’s adjusted net profit fell 10% to USD 3.1 billion, or USD 2.50 per share, but was in line with our expectations. Adjusted EBITDA of USD 9.8 billion was down 2% on last year. Stronger results from platinum group metals and iron ore, where adjusted EBITDA collectively grew 32% to USD 7.1 billion thanks to higher prices, was offset mainly by the decline in earnings from coal, which sagged with lower prices. Coal's EBITDA declined to almost zero in 2020 from USD 1.8 billion last year. Earnings from the rest of the business were flat overall.