Swan song: Cutifani steps down from Anglo, leaving a stronger firm
ANGLO American chief executive Mark Cutifani stepped down from the helm after a nine-year tenure at the world’s largest mining firm. In his swan song, he said leading the company had been “quite a ride”.
Under Cutifani’s leadership, Anglo American share price has risen from R223 a share when he joined the company in April 2013 to R800 in intrady trade yesterday.
During the group’s 2022 annual general meeting (AGM) held on Tuesday, and outlined in a statement yesterday, Cutifani said it had been a great privilege to lead the company for nine years.
“I am grateful to have had the unwavering support of Stuart (Chambers, the chairperson of Anglo American) and the board for what I and your management team have been seeking to accomplish.
“I also wish to thank the board for their guidance, the executive team for their tenacity and friendship, every one of our employees for their sheer resilience, and our shareholders, along with all other stakeholders, for their spirit of engagement.
Chambers said Cutifani was an inspiring and authentic leader, who had led his executive team with distinction through some challenging times to transform Anglo Americans’ performance and prospects.
“His legacy in the areas of safety, the power of engagement, business remodelling, and his determination to create a very different and sustainable future for mining enabled through technology, deserve particular recognition,” Chambers said.
Cutifani will be succeeded by longtime Anglo American employee DuncanWanblad. The board had unanimously appointed him.
Cutifani said he did not think of any better leader than Wanblad to pass the baton to.
“Duncan brings 30 years of international mining experience and his deep understanding of Anglo American, its culture, and its context. He has been integral to the reshaping of the company alongside Mark and is uniquely qualified to take Anglo American forward,” Chambers said.
Speaking at the AGM, Cutifani gave the company’s recent overview.
He said in a year of two distinct halves, the company had recorded strong demand and high prices for many of its products as economies recouped lost ground, spurred by stimulus measures.
“Copper and the platinum group metals and premium quality iron ore for greener steelmaking, supported by an improving market for diamonds, all contributed to a record financial performance, with underlying earnings before the interest, taxes, depreciation and amortisation (Ebitda) of $20.6 billion (R304bn).”
He said the company had generated attributable free cash flow of $7.8bn due largely to a strong price environment in the first half.
The company’s return on capital employed of 43 percent was well above its targeted 15 percent through-the-cycle return hurdle rate, as it should be in times of strong pricing.
“We are resolutely committed to capital-allocation discipline and to maintaining a strong and flexible balance sheet. At the end of 2021, net debt of $3.8bn, or just 0.2 times underlying Ebitda, reflects the growth investments we are making, our commitment to return excess cash to shareholders,” he said.
Cutifani said operationally, Anglo American continued to deliver significant improvements through its organisation and operating models raising efficiency and productivity – and through the deployment of FutureSmart Mining.