Anglo halves final dividend as diamond write-downs bite

Anglo American has halved its final dividend as impairments pushed the group into a loss for the financial year ended in December 2024.The diversified global miner on Thursday declared a final dividend of $0.22 (about R4.07), a 46% decline from $0.41 in the year prior.Total dividends for the year came to $800 million, equal to $0.64 per share, consistent with the group's 40% payout policy. This is 33% lower than the total dividends for 2023.Anglo American reported a loss for 2024, with basic headline earnings per share falling to $0.72 (about R13.30) compared to $2.06 in 2023.Having recognised net impairments of $3.8 billion (about R70.2 billion), the group reported a loss attributable to equity shareholders of $3.1 billion.The bulk of this pertains to De Beers, the group's embattled diamond business which is struggling amid oversupply, low demand, and lab-grown gems; and for which the carrying value has been written down by $2.9 billion.Impairments are fundamentally technical issues, triggered by certain events, Anglo CEO Duncan Wanblad said during a media call on Thursday morning."In this particular case it was the price and volume moves in the market over a reasonable period of time, over the last sort of two to three year. Plus the data that we were assimilating and analysing on the scarring of lab-grown diamonds on the market itself," he said.Amid lower commodity prices, group revenue decline 11% to $27.3 billion and underlying earnings before interest, taxes, depreciation and amortization (ebitda) fell 15% to $8.46 billion.Anglo however reported a strong operational and costs performance, with an earnings margin stable at 30%, supported by flat unit costs and other major cost efficiencies.The group further highlighted the progress of its portfolio simplification process, as it works to unbundle various assets, streamlining the business to focus on copper, iron ore and fertiliser.The progress includes the signing of sales agreements for its steelmaking coal and nickel businesses, which is expected to generate up to $5.3 billion in gross cash proceeds.The demerger of Anglo American Platinum is expected in June, with Anglo now planning to retain a 19.9% interest in the company – down from 67% currently – and to then exit responsibly over time."Work to separate De Beers is also well under way, with action taken to strengthen cash flow in the near term and position De Beers for long-term success and value realisation."Anglo is also looking at growing its existing copper endowments and on Thursday announced the signing of a memorandum of understanding with the Chilean state-owned mining company Codelco to implement a joint mine plan for the two companies' respective, adjacent copper mines of Los Bronces and Andina in Chile. The joint mine plan will increase copper production with minimal additional capital required, Anglo said."We have moved at pace to set up Anglo American as a highly attractive and differentiated value proposition for the long term, offering strong cash generation to support sustainable shareholder returns and the capabilities and longstanding relationship networks to deliver our full value and growth potential," Wanblad said.The Anglo share traded flat at R548 on Thursday and 32% higher in the past year.

Anglo halves final dividend as diamond write-downs bite

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Republikein 2025-04-30

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Anglo halves final dividend as diamond write-downs bite

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