Anglo American shares closed Thursday's session down 2.3% at £35.84, trailing the broader FTSE 100 index which fell 0.7%. The miner's stock faced pressure as investors assessed ongoing challenges in its diamond business and awaited upcoming financial results.
De Beers Divestment Takes Center Stage
Chief Executive Duncan Wanblad has identified the sale of the De Beers diamond unit as a critical objective for the company. He cited continued softness in consumer demand for diamonds as a primary driver for the planned divestment. Wanblad suggested a consortium purchase is the most likely outcome, noting a lack of major strategic buyers currently in the market.
The sale process is complex, influenced by weak consumer appetite, financing hurdles, and geopolitical factors. The final valuation will largely depend on market perceptions of whether diamond demand has stabilized.
Full-Year Results Loom
Attention now turns to the company's full-year 2025 results, scheduled for release on February 20. Analysts and shareholders will scrutinize the report for detailed updates on the De Beers sale timeline and broader portfolio restructuring plans.
The broader mining sector presents mixed signals. While platinum prices have rallied recently, industry executives remain cautious about committing to new projects without stronger long-term price support, referencing higher costs and lessons from previous market cycles.
Key risks for Anglo American include prolonged diamond market weakness, extended negotiations for De Beers, or a sale price below investor expectations. A general cooling of sentiment toward commodity stocks could also pressure the diversified miner.
Market sentiment in London was risk-averse late Thursday, with investors digesting disappointing UK growth data and renewed speculation about a potential Bank of England interest rate cut in March.
