Anglo American Share Price (JSE: AGL) Slides 10% Weekly Amid Weak Diamond and UK Results
Anglo American’s interim 2025 report highlights the cost of its sweeping transformation, as diamond weakness weighed heavily on shares...
Quick overview
- Anglo American's interim 2025 report reveals significant losses and a steep dividend cut due to weak diamond markets and market volatility.
- Despite a nearly 10% drop in share price, the company's core operations, particularly in copper and iron ore, showed strong margins and operational resilience.
- The miner is undergoing a strategic transformation focused on copper and premium iron ore, aiming for long-term profitability amidst ongoing restructuring challenges.
- Investor sentiment remains cautious as the company navigates short-term pain while working towards a more sustainable growth model.
Anglo American’s interim 2025 report highlights the cost of its sweeping transformation, as diamond weakness and market volatility weighed heavily on shares despite strong core copper and iron ore margins.
Stock Performance and Market Reaction
Anglo American (JSE: AGLJ) endured a difficult week, with shares sliding nearly 10% from about R548 to R494, as investors reacted to a challenging interim report. The decline formed a bearish engulfing candlestick on the weekly chart, signaling potential for further downside.
AGLJ Chart Weekly – Unable to Break Above the 200 SMA
Market sentiment was further dampened by the broader JSE 40 index, which fell 13% amid risk-off trading and trade tensions.
AGLJ Chart Monthly – The Lower Highs Continue
On the technical side, AGLJ continues to struggle against its long-term resistance near R550, where the 50-week SMA (yellow) aligns with a multi-year descending trendline. This setup suggests that the stock could remain under pressure in the months ahead if no major bullish catalyst emerges.
Operational Resilience in Core Divisions
Despite the market weakness, Anglo American’s core operations delivered robust results:
- Copper margins: 48%
- Premium iron ore margins: 44%
- EBITDA contribution from copper projected to exceed 60% in future periods
CEO Duncan Wanblad emphasized that the miner’s strategic pivot toward copper, premium iron ore, and crop fertilizers is beginning to generate tangible value for shareholders, even as diamond markets remain sluggish. The group also achieved $1.3 billion of its $1.8 billion cost-savings target by the end of June, with a cash conversion rate of 108%, highlighting disciplined execution.
Interim Earnings Pressure and Global Impact
The UK parent company reported a weak interim performance, with mounting losses and a steep dividend cut dragging down both AAL (UK) and AGLJ (South Africa) shares. The diamond segment slump and reduced contributions from coal and other legacy businesses continued to weigh on group earnings.
While Anglo American’s turnaround plan is advancing, the results show that short-term pain will likely persist as the miner completes its portfolio reshaping and global restructuring, with profitability increasingly dependent on copper and iron ore strength.
Anglo American UK (LSE: AAL) Interim Earnings Snapshot
Anglo American’s first-half 2025 earnings revealed deeper losses and a reduced dividend, as the miner accelerates its shift toward copper and iron ore.
Financial Performance
- Net Loss: $1.9 billion, widening from $672 million in the same period last year.
- Revenue: $8.95 billion, down 7% year-over-year, missing analyst forecasts.
- Underlying EBITDA: $3 billion, down 20% year-over-year.
Dividend Reduction
- Interim Dividend: Slashed to $0.07 per share, down from $0.42 last year.
Reason for Cut:
- Negative earnings from platinum and coal units.
- No contribution from De Beers diamond business.
- Restructuring & Strategic Shifts
Corporate Overhaul:
- Focus on copper and iron ore operations to drive long-term profitability.
- Divestment plans for coal and struggling diamond units remain in progress.
Market Context:
- Weak diamond sales and lower platinum and coal profitability weighed on results.
- Cost discipline and asset sales are critical to regaining margin strength.
Outlook and Strategic Positioning
Anglo American is betting on its transformation to secure long-term shareholder value, with management confident that the shift toward future-facing commodities will underpin sustainable growth once commodity markets stabilize. However, until the diamond market recovers and restructuring fully materializes, investor sentiment may remain cautious, keeping the stock under technical pressure.
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