Mining giant Anglo American PLC (LON:AAL) has launched a US$1bn buy-back programme even though the shares are at a five-year high.
Stephen Pearce, finance director, said: “This additional return of up to $1bn recognises the resilience of our position and builds upon the $3.4 billion of cash that we will have returned to shareholders since reinstating the dividend in mid-2017."
Anglo underlined its confidence by increasing the interim dividend by 27% on top of the buy-back.
Underlying half-year profits rose by 19% to US$5.5bn helped by a good performance and strong prices for iron ore and the platinum group metals.
Elsewhere, the picture was less rosy with sharply lower profits at De Beers and in coal, copper and nickel.
Attributable profit rose by 46% to US$1.9bn while net debt increased to US$3.4bn.
“We are committed to delivering the additional $3-4 billion annual underlying EBITDA run-rate improvement by 2022, relative to 2017,” said Mark Cutifani, chief executive.
Shares rose 2% to 2,226p.