Anglo American Plc shares advanced on the Johannesburg Stock Exchange Friday, closing 2.2% higher at 78,564 South African cents, even as the mining giant disclosed a substantial full-year loss. The stock traded within a range of 76,380 to 79,949 cents, with volume exceeding 1.1 million shares, providing a firm finish to the trading week.
Financial Results Highlight Diamond Sector Challenges
The company reported a net loss of $3.7 billion for the 2025 fiscal year, a result heavily impacted by a pre-tax impairment charge of $2.3 billion at its De Beers diamond subsidiary. Underlying earnings before interest, taxes, depreciation, and amortization (EBITDA) came in at $6.4 billion. In response to the financial performance and ongoing market conditions, Anglo American's board declared a final dividend of $0.16 per share, bringing the total annual payout to $0.23 per share, a reduction from prior periods.
Chief Executive Duncan Wanblad addressed the diamond market dynamics, noting, "There is currently a plentiful supply of rough diamonds in the market," which has pressured valuations. The substantial writedown reflects these sustained challenges within the diamond sector.
Strategic Restructuring and the Teck Merger Timeline
Investor focus remains sharply fixed on the company's strategic initiatives, primarily the planned sale of De Beers and the pending merger with Canadian miner Teck Resources. During an earnings conference call, Wanblad provided a crucial update on regulatory approvals, stating that all necessary consents have been secured except for those from authorities in China and South Korea. He reiterated that the regulatory process is expected to take between 12 and 18 months to complete.
The merger with Teck is central to Anglo American's strategic pivot towards copper and high-grade iron ore, moving away from more volatile assets like diamonds. This shift aligns the company with peers focused on metals critical for the global energy transition. Teck itself recently reported stronger-than-anticipated fourth-quarter profits and reaffirmed its 2026 copper production target of 455,000 to 530,000 tonnes.
Key Dates for Shareholders
The company confirmed several important dates for investors. Anglo American shares will trade ex-dividend on the Johannesburg bourse beginning March 11, meaning purchasers after that date will not be entitled to the upcoming payment. The record date for eligibility is set for March 13, with the dividend payment scheduled for May 6. Shareholders will have the opportunity to vote on company matters at the annual general meeting on April 29.
Market Context and Investor Sentiment
The broader South African equity market provided a supportive backdrop, with the FTSE/JSE Top 40 index gaining 1.3% on Friday. This positive sentiment was partly fueled by global markets digesting the latest U.S. inflation data and movements in oil prices. However, Anglo American's outperformance was largely driven by its specific corporate developments rather than the general market trend.
As a major component of the local bourse, Anglo's restructuring narrative and the progress of its high-profile merger are being closely watched for their potential impact on Johannesburg's mining sector. The market's closure for the weekend offers investors time to assess the implications of these results and strategic updates.
Risks and Forward Outlook
While the strategic shift holds promise, significant risks remain. A prolonged slump in diamond demand could force De Beers to hold inventory for longer periods or accept lower prices, potentially straining Anglo American's balance sheet as it manages its leverage. Furthermore, any unexpected delays in securing the final regulatory clearances from China or South Korea could postpone the Teck merger, creating uncertainty that may weigh on the stock.
The coming weeks will be critical, with investors monitoring the De Beers sale process and any announcements regarding the outstanding merger approvals. The company's ability to execute its pivot towards future-facing commodities while navigating current diamond market headwinds will define its trajectory in 2026.
