Shares of Anglo American PLC moved higher in London trading on Friday, as the market looked past a substantial annual loss and concentrated on the progressing divestment of the company's De Beers diamond business. The stock gained 1.8% to 3,641 pence in the morning session.
Financial Results and Impairment
The global mining group reported a net loss of $3.7 billion for the full year 2025. This result was heavily impacted by a pre-tax non-cash impairment of $2.3 billion against its De Beers diamond subsidiary. The writedown reflects persistent challenges in the rough diamond market, characterized by an oversupply of inventory and softer demand. Underlying earnings before interest, taxes, depreciation, and amortization (EBITDA) for the period came in at $6.4 billion, broadly aligning with analyst expectations.
Portfolio Restructuring and De Beers Sale
The financial update arrives amid a sweeping strategic overhaul at Anglo American, designed to streamline its portfolio and sharpen its focus on future-facing commodities like copper and iron ore. The sale of De Beers is a cornerstone of this plan. Chief Executive Duncan Wanblad stated that the sale process has reached an advanced stage, with binding bids expected to be submitted imminently.
"We are seeing interest from several consortia," Wanblad noted in comments to reporters. The government of Botswana, a longstanding partner in the diamond venture, has expressed its intention to increase its stake in De Beers. Separately, Angola is reportedly seeking to acquire a 20% to 30% holding, as part of a broader initiative with other African diamond-producing nations.
Broader Divestment Strategy
Beyond diamonds, Anglo American is actively exiting other non-core assets. The company has marked its nickel and steelmaking coal operations for sale and is proceeding with a demerger of its platinum business. This strategic pivot is a direct response to shifting capital allocation trends, where metals critical for electrification and decarbonization, particularly copper, are attracting greater investment.
Market Context and Peer Performance
Anglo's earnings conclude a mixed reporting season for London-listed miners. While some peers, such as Antofagasta, have benefited from stronger copper prices, others with exposure to diamonds, coal, and iron ore have faced headwinds. Investors are also monitoring Anglo's proposed merger with Canadian miner Teck Resources, a deal intended to significantly boost its copper production scale. Teck reported on Thursday that the transaction only awaits final regulatory approvals, after receiving shareholder consent in December.
Dividend Declaration and Key Dates
Despite the annual loss, Anglo American's board declared a final dividend of 16 U.S. cents per share for the year ended December 31, 2025. The shares will trade ex-dividend on the London Stock Exchange on March 12, with the record date set for March 13. The payment to shareholders is scheduled for May 6.
Potential Risks and Outlook
The path forward is not without obstacles. A prolonged period of weak diamond demand and high inventory levels could pressure potential buyers to demand more favorable pricing or stricter sale terms. Furthermore, the involvement of multiple national governments in the De Beers transaction introduces regulatory complexity that could extend the timeline.
For now, trader sentiment is being driven by developments related to De Beers. The market awaits concrete updates on binding bids and regulatory milestones for the Teck merger, which will likely set the near-term direction for the stock. The next significant date for equity holders is March 12, when the shares begin trading without the dividend entitlement.
