Anglo American plc

Reported figures were strong for the simplified portfolio: EBITDA was $6.9 billion, up 9% year over year, with a 44% EBITDA margin and underlying earnings of $1.6 billion. Continuing operations EBITDA was $6.4 billion and continuing operations earnings were $0.9 billion; underlying EPS for the full group was $0.54, and full-year dividends were $0.23 per share. Production was down 4% in the simplified portfolio, but revenue rose 4% on higher realized prices. Cash generation remained solid, with sustaining attributable free cash flow of $1.4 billion, net debt reduced to $8.6 billion, and capex in continuing operations down 16% to $3.3 billion. For 2026, management guided copper unit costs to around $1.72 per pound from $1.50, premium iron ore unit costs to around $41 per tonne, continuing operations tax rate to 44% to 48%, depreciation to $2.4 billion to $2.6 billion, and around $0.2 billion of restructuring and merger costs. Capex for the next 3 years for the simplified portfolio is expected to be $2.6 billion to $3.1 billion, with De Beers capex around $0.5 billion in 2026.

Duncan Wanblad framed 2025 as a transformational year in which Anglo American made substantial progress on operational excellence, portfolio optimization, and growth. He emphasized that the business is moving into its next phase through Anglo Teck, with copper at the center of the strategy and with the combined company expected to create value through industrial and financial synergies. His tone was upbeat but disciplined, especially on safety, where he repeated that zero harm remains the standard and noted that 2025 still included two fatalities, which he called unacceptable.

John Heasley said the business delivered on production, cost, and the $1.8 billion cost-out program, with realized savings of $1.6 billion to date and the remaining $0.2 billion expected in 2026 before dissynergies. He highlighted that the simplified portfolio generated $6.9 billion of EBITDA, a 44% margin, and that net debt fell to $8.6 billion, helped by $2.4 billion from the Valterra sell-down. On capital discipline, he pointed to a 16% decline in continuing capex to $3.3 billion and guided 2026 copper unit costs, premium iron ore unit costs, tax, depreciation, and merger costs, while noting De Beers needs cash preservation and further cost and capex reduction.

Analysts focused on Collahuasi/Quebrada Blanca timing and ownership, Woodsmith feasibility and the 25% Mitsubishi option, De Beers exit structure, China regulatory timing, and whether more asset or infrastructure monetization is possible. Management said the Collahuasi fourth line is the key milestone around late 2027, with the combined QBC option viewed as more attractive than a standalone path, but ownership and shareholder agreements still need to be sorted. On De Beers, Duncan said the company is prioritizing a strategic sale over a spin-off in the current market, expects some form of upfront-plus-contingent consideration, and sees no major issue with the regulatory process in China, which is progressing as expected.