Anglo American: Copper and iron ore lead strong operational performance
In its Interim Results 2025, Anglo American pointed out its portfolio simplification as the successful demerger of Valterra Platinum that unlocked significant value for shareholders, steelmaking coal and nickel sales agreed, and De Beers in process.
HIGHLIGHTS
Strong production and cost performance: EBITDA margins of 48% in copper and 44% in premium iron ore
Underlying EBITDA* of $3.0 billion from continuing operations, reflecting challenging rough diamond trading conditions
On track to deliver committed $1.8 billion of cost savings: $1.3 billion realised by the end of June 2025
Strong cash conversion at 108%, with further reductions in working capital delivered
Net debt* of $10.8 billion, prior to receipt of majority of portfolio simplification proceeds
$0.1 billion interim dividend, equal to $0.07 per share, consistent with our 40% payout policy, reflecting negative earnings from discontinued operations and lack of contribution from De Beers
Note: Continuing operations includes Anglo American’s future portfolio and De Beers, per accounting requirements; discontinued operations includes the Platinum, Steelmaking Coal and Nickel businesses.
Duncan Wanblad, CEO of Anglo American, said: “We are delivering on our strategy, transforming Anglo American into a higher margin, more cash generative and more valuable mining company. By focusing on our exceptional copper, premium iron ore and crop nutrients resource endowments, each with significant value-accretive growth options, we are unlocking material value for our shareholders by delivering the see-through value of our portfolio, in which we expect copper to account for more than 60% of EBITDA.
“Safety is our number one value and always our first priority. We continue to make progress towards our goal of zero harm, with a further major improvement in the first half on what was our lowest-ever injury rate in 2024. I am, though, sorry to report the loss of two colleagues following accidents in Brazil and Zimbabwe. We are unconditional in our commitment to safety and we extend our heartfelt condolences to their families, friends and colleagues.
“I am delighted that the first half saw our continued strong operational and cost performance in copper and iron ore, coupled with further momentum towards our committed $1.8 billion of cost savings. Group underlying EBITDA of $3.0 billion from continuing operations reflects this focus on cost discipline, despite the challenging rough diamond market conditions. While 2025 is very much a year of transition, we maintained a strong EBITDA margin for our go-forward business at 43% (consistent with the prior period, on a pro forma basis(1)), compared with our current overall margin position of 32% from continuing operations (2024: 37%).
“We have made further good progress towards our simplified portfolio. In May, we completed the demerger of the majority of our interest in Valterra Platinum to our shareholders and we expect to monetise our residual 19.9% interest – currently valued at $2.6 billion – responsibly over time. We are also continuing to progress the agreed steelmaking coal and nickel business sale transactions. We expect a material strengthening of our balance sheet flexibility upon receipt of proceeds from these transactions. The work to separate De Beers is well under way, with action taken to strengthen cash flow as we position De Beers for long-term success and value realisation.
“Our clear and decisive actions are transforming Anglo American into a highly attractive and differentiated value proposition for the long term, offering strong cash generation to support sustainable shareholder returns combined with the capabilities and longstanding relationship networks to deliver our full value and growth potential.”
