The corporate attributed the impairment at Woodsmith to a choice to “briefly decelerate” improvement of the undertaking, which Anglo rescued from collapse 4 years in the past. Anglo took a $1.7 billion hit final yr as a result of a protracted timeline and better prices on the mine, which is able to produce polyhalite — a brand new sort of natural fertilizer that has not but been examined at scale.
Concerning its coal property, the corporate will conduct a two-stage public sale course of, which has been delayed by a significant hearth on the Grosvenor mine. Anglo mentioned the Queensland, Australia asset would most likely solely resume operations below a brand new proprietor.
“We’re reworking Anglo American by specializing in our world-class asset base in copper, premium iron ore and crop vitamins,” chief govt Duncan Wanblad mentioned within the assertion. “As we progress our portfolio transformation, we anticipate to considerably cut back our overhead and different non-operational prices in phases, however weighted in direction of the tip of the method to reduce enterprise threat.”
Core divisions excel
Income within the half yr to June 2024 fell by 8% to $14.5 billion whereas underlying earnings had been down by 23% to $1.29 billion. Web losses had been $672 million, in comparison with a revenue of $1.26 billion a yr in the past.
About 70% of the earnings got here from copper and iron ore, the 2 divisions Anglo is holding, together with Woodsmith.
Wanblad mentioned he was “very inspired” by the corporate’s “sturdy” operational efficiency. “[We] delivered regular volumes and a 4% enchancment in unit prices, whereas nonetheless going through weak cyclical markets for platinum group metals and diamonds,” he mentioned.
The outcomes beat analyst consensus forecast due to a stronger-than-expected efficiency from the copper division. The interim dividend of $0.42/share was additionally greater than market estimates by 9%, BMO metals and mining analyst Alexander Pearce wrote on Thursday.
“All issues thought of, this seems to be a optimistic set of outcomes from Anglo,” mentioned Christopher LaFemina, analyst at Jefferies. Nonetheless, there are “comparatively excessive dangers related to the corporate’s proposed restructuring plan,” he famous.
The corporate reiterated 2024 manufacturing and value steering for many of the portfolio, however lowered De Beers’ anticipated manufacturing for the second time this yr to 23-26 million carats from 26-29 million carats beforehand.