De Beers Write-Down Relief Helps Anglo American Share Price Head to Records
Anglo American plc (JSE: AGL) reported a $3.7 billion loss for 2025 after another major impairment at De Beers, underscoring the pressure...
Quick overview
- Anglo American plc reported a $3.7 billion loss for 2025, primarily due to a $2.3 billion impairment at De Beers, reflecting ongoing challenges in the diamond market.
- Despite the loss, underlying earnings from continuing operations increased by 2% to $6.4 billion, driven by stronger performance in copper and iron ore.
- The company is pursuing a merger with Teck Resources and exploring options for divesting De Beers to streamline its portfolio amid the diamond slump.
- Anglo's revenue from continuing operations rose 5% year-on-year to $18.5 billion, supported by improved operational discipline and cost savings.
Anglo American plc (JSE: AGL) reported a $3.7 billion loss for 2025 after another major impairment at De Beers, underscoring the pressure from a prolonged downturn in the diamond market.
De Beers Write-Down Drives Statutory Loss
Anglo American posted a $3.7 billion loss attributable to shareholders after taking a fresh $2.3 billion pre-tax impairment at De Beers Group. The charge reduced De Beers’ carrying value to $2.3 billion from more than $4 billion, reflecting persistent weakness in global diamond demand and elevated inventory levels.
Over the past year alone, Anglo has written down De Beers by a cumulative $6.8 billion. The deterioration highlights the severity of the downturn in the diamond market, where softer consumer demand and pricing pressure continue to weigh heavily on profitability.
Stock Technical Outlook: Momentum Turning Upward
Technically, Anglo American’s share price resumed the longer uptrend in 2025 after a 3-year pullback and now is heading to record highs. On the monthly chart, the stock found strong support around R400, rebounding off the 100 SMA (green) and pushing decisively above the 50 SMA (yellow)—a move which signaled the bullish reversal and now ANGJ share price is heading for all time highs of R836.
ANGJ Chart Monthly – Resuming the Uptrend
On the weekly chart, a breakout above the 200 SMA (purple) and the descending trend line from 2023 further confirm the trend change. Following the upside price action after the Q4 results, the broader technical structure suggests renewed buying momentum and a possible continuation higher in the months ahead.
ANGJ Chart Weekly – The 20o SMA Has Turned Into Support
Underlying Strength in Core Operations
Despite the impairment, underlying earnings from continuing operations rose 2% to $6.4 billion. Stronger performances in copper and premium iron ore helped offset the sharp decline in diamonds. The group also delivered $1.8 billion in run-rate cost savings, signaling improved operational discipline.
Revenue growth and stronger free cash flow generation reflect progress in restructuring efforts. Net debt declined as portfolio optimization measures and asset sales supported balance sheet repair.
However, Anglo’s broader transformation strategy is colliding with the diamond slump at a sensitive time. The company is actively repositioning itself toward copper and iron ore, commodities central to the global energy transition. A swift sale of De Beers would streamline the portfolio, but a prolonged divestment process risks prolonging uncertainty.
Strategic Moves and Merger Ambitions
Interest in De Beers has emerged from several consortia. Botswana is reportedly seeking to increase its stake, while Angola has expressed interest in acquiring a 20%–30% holding alongside other African producers.
At the same time, Anglo continues advancing its proposed merger with Teck Resources Limited to create a diversified critical minerals powerhouse. CEO Duncan Wanblad described 2025 as a transformational year, highlighting portfolio simplification and operational excellence as key achievements.
The merger proposal reflects Anglo’s ambition to pivot decisively toward commodities with stronger long-term structural demand.
Anglo American plc 2025 Earnings Report
📊 Revenue & Cash Flow
Revenue from continuing operations:
- Increased 5% year-on-year to $18.5 billion
- Reflects relative resilience across core assets despite commodity volatility
Attributable free cash flow:
- Swung to a $790 million inflow
- Compared to a $209 million outflow in the prior year
Improvement driven by:
- Working capital reductions
- Lower capital expenditure
- Tighter cost controls
💰 Balance Sheet & Deleveraging
- Net debt reduced to $8.6 billion, down from $10.6 billion
Reduction supported by:
- Proceeds from the sale of its residual Valterra Platinum shareholding
- Broader portfolio restructuring initiatives
Management expects further deleveraging as planned divestments continue
📉 Statutory Loss & Impairments
- Reported a $3.7 billion loss attributable to shareholders
- Loss largely driven by a $2.3 billion pre-tax impairment at De Beers Group
- Highlights ongoing pressure in the diamond segment and portfolio transition challenges
💵 Dividends
- Total 2025 dividend: $0.23 per share
- Includes a final dividend of $0.16 per share
- In line with the company’s 40% payout policy
Conclusion
Anglo American’s 2025 results underscore a company in transition. Operational improvements, cost savings, and strengthening copper and iron ore performance provide a solid foundation. Yet the deepening crisis at De Beers continues to cast a shadow over headline earnings.
The path forward hinges on disciplined capital allocation, successful portfolio restructuring, and clarity around the proposed Teck merger. While the technical outlook appears constructive, sustained long-term gains will depend on resolving diamond market exposure and delivering on strategic transformation goals.
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