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Anglo Americans wrote down the value of its De Beers Diamond business for the second time in two years, as it competed to undergo a serious restructuring by the end of the year.
The London-listed miner said on Thursday that it had booked $2.9 billion in damage charges in the diamond department, a downturn attack on the precious stone market. That’s $1.6 billion in writing reported in Anglo’s annual results last year.
Diamond prices have fallen over the past decade, and the market has been under recent pressure due to the popularity of cheap lab-grown diamonds and a pullback in Chinese consumer spending.
The impairment allegations resulted in Anglo’s net loss of $3.1 billion in 2024, down from the previous year’s profit of $283 million. The company’s shares have grown by more than 40% over the past 12 months and 4% in early trading in London.
Anglo campaign implemented an ambitious turnaround plan after the Anglo competition was launched last year after its £39 billion acquisition attempt.
Anglo resists bids, promising itself to overhaul by the end of 2025 to focus on copper and iron ore.
FTSE 100 Group has made progress in three of the four main elements of the restructuring plan, selling its steel and coal assets, announced plans this week to sell its nickel business and prepare for derivatives from its platinum arm.
However, stripping beer is more challenging. Anglo CEO Duncan Wanblad said on Thursday that the conditions in the diamond market meant “I really don’t expect too much attention or progress” [offloading De Beers] In the first half of this year, although the second half may be “answer”.
Anglo is considering selling and listing beer, with book value now at about $4 billion. This includes about $2 billion worth of stocks, similar to last year.
Wanbrad said Anglo received “many unsolicited inbounds” from de Beers. However, he said the company has not initiated a formal sales process as it only reached a key licensing agreement with the Botswana government this month, which owns 15% of de Beers.
Overall, Anglo’s turnover will be “substantially completed this year.”
Anglo also announced on Thursday that it had agreed to reach an agreement with Chilean state-owned mining company Codelco to launch a joint mine plan for the two companies’ existing adjacent copper mines in Chile. Anglo said the plan would “increase copper production with minimal additional capital.”
However, Anglo predicts that copper production this year is lower than in 2024, and diamond production is expected to decline.
Asked if there are more such deals in the pipeline, Wanblad said: “We are thinking more about it. . . There are some of these natural synergies that can be exploited.”
Anglo cuts its business and sold cash piles from sales such as nickel assets, “at the risk of attracting interest from other potential predators.”
