Anglo American posts loss after hit from diamond operations

(Sharecast News) - Troubled miner Anglo American on Thursday posted a full-year loss of $3.1bn after a large impairment related to its De Beers diamond operation as it continued restructuring plans to focus on copper and iron ore. The loss attributable to shareholders compared to a profit of $283m in 2023, while the dividend was cut to 64 cents a share, from 96 cents.

The company said it was taking an impairment of $3.8bn, with $2.9bn related to the diamond operation. Difficult trading conditions resulted in 23% fall in revenue at De Beers to $3.3bn on the back of weak demand from China as rough diamond sales decreased by a quarter to $2.7bn. Total rough diamond sales volumes were down 28% to 17.9 million carats.

Anglo announced it had agreed to merge its copper mine Los Bronces in Chile with state-backed Codelco's operation Andina. On Tuesday the company revealed it was selling its nickel business to a unit of Hong Kong-listed MMG for up to $500m as part of a plan to refocus operations on copper and iron ore. It is also demerging its platinum metals unit.

"We are fast transforming Anglo American into a far higher margin and more valuable mining company focused on exceptional copper, premium iron ore and crop nutrients assets and significant growth optionality," said chief executive Duncan Wanblad.

Reporting by Frank Prenesti for Sharecast.com