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Anglo $3bn share buyback in 2007 Posted: Wed, 21 Feb 2007 [miningmx.com] -- ANGLO AMERICAN, which reported record operating profit of $9.8bn in 2006, will buy back a further $3bn of its shares in 2007 after last year's $7.5bn buyback and return to shareholders as the company continues to benefit from high platinum, base and ferrous metal prices. This comes on top of an increased dividend payout for 2006 of 42%, bringing the total dividend, including a special dividend of $0.67 and a final dividend of $0.75, to $1.75 a share. Shareholders vote on the dividend on 17 April at the annual general meeting where CEO Tony Trahar steps down. Some analysts had been expecting a larger share buyback after last year's $6bn scheme. JP Morgan said on Monday there was a good possibility of a $4bn buyback as debt continues to fall. "The group has announced a 2007 share buyback of $3bn - commendable but mildly disappointing relative to market expectations of $4bn plus," said Simon Toyne from Numis Securities. "However, we note the final dividend has been increased 21% to raise the full year yield to 2.1%," he said in a note. "Overall, the results and update suggest 'on track' financial and strategic progress but no more than that." Anglo posted underlying earnings per share of $3.73 against market expectations of $3.83. Anglo expects global economic growth to slow in 2007 because of weak US growth, but this will be offset by China and India, which are growing strongly, as well as an improvement in European and emerging markets, Trahar said in a statement. "This should provide a supportive climate for commodities in the near term," he said. The global economy has grown strongly over the past four years, and the consensus is that the growth rate will be slightly lower this year but without "undue pressure" on inflation rates and interest rates, he said. Cynthia Carroll, who joined Anglo in January from Alcan, will replace Trahar. Click Here to subscribe to our daily newsletter
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