Global diversified miner Anglo American is starting to see underlying earnings before interest, taxes, depreciation and amortisation (Ebitda) gains from its simplified portfolio that focuses on copper, premium iron-ore, manganese and crop nutrients.

The company’s continuing operations delivered an underlying Ebitda of $6.4-billion for the year ended December 31, 2025, compared with Ebitda of $6.3-billion in the prior year, with the company having realised $1-billion from favourable pricing benefits in copper and premium iron-ore in the year under review.

Anglo recorded Ebitda margins of 49% in copper and 43% in premium iron-ore, as well as realised $1.8-billion of run-rate cost savings by the end of 2025.

In particular, underlying Ebitda from the copper segment increased from $3.8-billion in 2024 to $3.9-billion in 2025, while premium iron-ore’s underlying Ebitda increased from $2.6-billion in 2024 to $2.8-billion in 2025.

Underlying Ebitda for manganese also increased from $116-million in the prior year to $127-million in the reporting year.

CEO Duncan Wanblad highlights the company’s strong cash conversion for continuing operations in the year under review of 107%, with reductions in working capital also having been delivered.

The group decreased its net debt to $8.6-billion in the reporting year, compared with net debt of $10.6-billion in the prior year, partly owing to the sale of Anglo American Platinum – now Valterra Platinum.

Anglo reported a loss attributable to equity shareholders of $3.7-billion for the year under review, mainly on the back of  a pre-tax impairment of $2.3-billion relating to diamond miner De Beers.

This compares to an attributable loss of $3-billion in the prior year.

The company’s loss a share widened by 30% year-on-year to $3.30 apiece.

Anglo announced a 64% lower total dividend for 2025 of $0.23 apiece.

De Beers reported an underlying loss before interest, taxes, depreciation and amortisation of $511-million in the reporting year, which widened from a loss of $25-billion in the prior year, owing to persistent challenging trade conditions.

Wanblad says lower average rough diamond prices and stock rebalancing initiatives in the year under review had significant impacts on De Beers’ earnings.

PRODUCTION

De Beers reported 12% lower rough diamond production in the year under review at 21.7-million carats.

Copper output decreased by 10% year-on-year to 695 000 t, while premium iron-ore production remained stable at 60.8-million tonnes.

Manganese ore production increased by 30% year-on-year to 2.9-million tonnes in the reporting year. 

Moreover, Anglo is developing the Woodsmith project as a large, long-life Tier 1 polyhalite production asset in England. Polyhalite contains low-chloride potassium, sulphur, magnesium and calcium – four of the six nutrients that plants need to grow.

Anglo plans to extract this mineral through two 1 600-m-deep mine shafts before being granulated into Anglo’s low-carbon multi-nutrient polyhalite product (POLY4) at a materials handling facility in Teesside port.

Board approval for Woodsmith remains subject to completion of a feasibility study showing robust economic potential, a clear pathway to syndication and sufficient deleveraging of the group balance sheet.

Anglo has an agreement in place with Japanese general trading giant Mitsubishi Corporation that allows the parties to work together on market development and financing opportunities to build out demand for POLY4.

TRANSFORMATIONAL YEAR

Wanblad says 2025 was a transformational year for Anglo with key portfolio changes having been completed or initiated.

Following the successful demerger of Valterra Platinum in May, Anglo also continues to progress the sale of its steelmaking coal business, which Wanblad expects to update shareholders on during the second quarter; the agreed sale of its nickel business, which is moving through the regulatory approval process; and the separation of De Beers.

Wanblad expects a deal for the sale of De Beers to be signed before the end of the year, which should be valued at about R2.2-billion.

Meanwhile, Anglo is undertaking integration planning for its merger with Teck Resources, following the company’s announcing of a “merger of equals” in September last year to create Anglo Teck.

The merger, which values the combined entity at $69-billion, was approved by Canadian regulators in December 2025. Anglo Teck aims to be a top-five global producer of copper.

“Our merger agreement to form Anglo Teck marks a defining moment in our long history – a compelling combination that is designed to unlock significant value both in the near and long term, while offering our shareholders more than 70% exposure to copper.

“Having received Investment Canada Act approval in December, following overwhelming support from both companies' shareholders, we continue to secure key regulatory approvals ahead of being in a position to deliver the exceptional value that we have identified as we take shape as a critical minerals powerhouse,” Wanblad concludes.