Resources group Anglo American has reported a loss attributable to shareholders of $3.1bn for the year ended December after recognising net impairments of $3.8bn.
Impairments included $2bn recognised in diamond producer De Beers.
Underlying earnings before interest, tax, depreciation and amortisation (ebitda) were down 15% at $8.5bn with the ebitda margin stable at 30%, despite 10% lower prices and challenging rough diamond trading conditions, supported by flat unit costs and other major cost efficiencies, it said on Thursday.
Revenue was 11% lower at $27.29bn. Basic headline earnings per share (HEPS) declined to $0.72 compared with $2.06 in the prior period. A final dividend of 22c per share was declared, taking the total dividend to 64c, down a third on the previous year.
All Anglo’s businesses delivered their full-year production guidance.
The group said the financial results were predominantly affected by lower iron ore, PGM and steelmaking coal prices, as well as challenging diamond market conditions, partially offset by higher copper prices and effective cost-saving initiatives.
Average market prices for the group’s basket of products decreased 10% compared with 2023, reducing underlying ebitda by $1.5bn, it said.
This was driven by a 22% decline in the weighted average realised price for iron ore, an 11% decrease in the PGMs basket price, primarily driven by rhodium and palladium, which fell by 30% and 24% respectively, and the weighted average realised price for steelmaking coal, which retreated by 11%.
This was partly offset by a 8% increase in the copper weighted average realised price.
CEO Duncan Wanblad said Anglo was fast being transformed into a far higher margin and more valuable mining company, focused on exceptional copper, premium iron ore and crop nutrients assets and significant growth optionality.
“2024 saw us transform our performance, with strong operational and cost delivery, $1.3bn of costs removed on a run rate basis in 2024 with a further $0.5bn to come by the end of 2025, and major progress with our portfolio simplification”, Wanblad said in the results statement.
During the year Anglo made “excellent progress” with its portfolio simplification, he said.
It agreed to the sale of the steelmaking coal business for up to $4.8bn in gross cash proceeds, and earlier this week agreed the sale of the nickel business for a cash consideration of up to $500m. In addition the demerger of Anglo American Platinum is expected in June, and Anglo will retain a 19.9% interest in Amplats to help manage flowback post demerger and which the company expects to exit responsibly over time.
“The work to separate De Beers is 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. Given prevailing diamond market conditions, we have reduced our carrying value of De Beers by $2.9bn,” said Wanblad.
“In terms of growth, we are progressing our considerable pipeline of high-quality options across our portfolio,” he said.
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