Anglo American: a $3.7 billion loss and steering the company toward copper

Anglo American on 20 February 2026 wrote down the value of De Beers by $2.3 billion and brought the carrying value of the diamond division to $2.3 billion. The group also reported a net loss of $3.7 billion but kept EBITDA operating profit adjusted for one-off items at $6.4 billion and confirmed further progress on the separation of De Beers, which the market reads as an acceleration of capital reallocation toward copper.[1]

About the company

Anglo American plc is a British multinational mining group headquartered in London. The company was founded in 1917 in South Africa by Sir Ernest Oppenheimer and is listed on the London and Johannesburg stock exchanges. It operates mining assets and projects across Europe, southern Africa, North America, South America, and Australia. Its portfolio primarily includes copper, premium iron ore, and agricultural nutrients, while it has also historically operated in the diamond segment, holding an 85% stake in De Beers. According to its 2024 annual report, it employs approximately 55-thousand people worldwide.[2]

A $2.3 billion write-down rewrites the value of De Beers

In its 2025 report, Anglo American posted a loss of $3.7 billion after recording another De Beers write-down of $2.3 billion. The carrying value of the diamond division thus fell to $2.3 billion, which is direct evidence for the market that natural diamonds have ceased to be a stable asset even for the biggest players. At the same time, the company showed that the core business remains strong, as EBITDA adjusted for one-off items reached $6.4 billion, but it is precisely the contrast between the strong core and weak De Beers that makes this report a crucial signal for shareholders who expect an acceleration of the portfolio shift.[3]

The diamond market is being suffocated by inventories and pressure from synthetics

Behind the write-down is not a one-off error in estimation, but a longer cycle of weak demand and excess supply. De Beers has faced declining production for a third year in a row, and the rough-diamond market has, according to management, filled up with inventories, which hit smaller and lower-quality stones the most. De Beers also deepened its loss to $511 million, and the environment is worsened by the growth of synthetic diamonds, which pushes jewelry prices down and changes consumer purchasing behavior. That is also why the 2025 write-down adds to a series of previous hits to value, and investors increasingly view diamonds as an asset with declining returns.[4]

African states want a stake in De Beers, and the sale is turning into a strategic question

Anglo American owns 85% of De Beers and is openly moving toward separating the asset, with interest no longer coming only from financial investors. Reuters reports that consortia, including Botswana and Angola, are interested in De Beers, and Angola is also pursuing the ambition to acquire a 20% to 30% stake so that key decision-making does not move outside the region. This geopolitical dimension is important for the market because it can influence both the price and the terms of the transaction, especially as diamonds remain a strategic source of income for Botswana and Angola. The signal to shareholders is clear: De Beers will be sold in a weak market environment and at the same time under political pressure, which increases the likelihood of tough negotiations.[1]3

Copper is the new center of the strategy

While diamonds are fading from the portfolio, Anglo American is pushing the critical minerals story, and copper is to be the core. The company continues preparations for a merger with Teck Resources worth $53 billion, which is to create the world’s fifth-largest copper company, with regulatory approvals still outstanding, including in China and South Korea. Teck also reported that in the last quarter of 2025, it mined 134-thousand tons of copper and confirmed its 2026 guidance in the range of 455-thousand to 530-thousand tons, which supports a clear narrative for investors about scaling production precisely in the commodity that underpins electrification and grids. For Anglo American, this is a way to replace the volatile diamond segment with an asset that the market values with a higher strategic premium.[5]

Savings of $1.8 billion, debt of $8.6 billion, and a lower dividend

Alongside the write-down, Anglo American showed that it is financing the transition through discipline in costs and cash. In 2025, the company achieved cost savings at a run rate of $1.8 billion per year, converted 107% of EBITDA operating profit into cash, and reduced net debt to $8.6 billion, giving management room to complete planned asset sales and prepare for a major copper move. At the same time, however, it cut the total dividend to $0.23 per share, confirming that the priority is balance-sheet stability and funding the transformation. Looking ahead, the Woodsmith project in the United Kingdom also fits into the story, where Anglo entered into cooperation with Mitsubishi on a pre-feasibility study, and the project, according to Mitsubishi, has the potential for an operating life longer than 60 years, which strengthens the company’s effort to build new sources of value outside diamonds. 1[6]

Conclusion

In 2025, Anglo American reached a point where diamonds are ceasing to be a stable pillar of value and are becoming a burden that pushes results into loss. The De Beers write-down of $2.3 billion and the total loss of $3.7 billion reinforce the expectation that the separation of the diamond division will accelerate and the company will continue reallocating capital into copper. At the same time, the figures show that the group’s core remains able to generate cash, reduce debt, and finance the transformation, which is decisive for shareholders. The coming months will be about under what conditions De Beers can be separated and whether the strategy around copper will translate into production growth and higher long-term returns.[2]

[1,2] Forward-looking statements are based on assumptions and current expectations that may be inaccurate, or on the current economic environment, which may change. Such statements are not a guarantee of future performance. They include risks and other uncertainties that are difficult to predict. Results may differ materially from results expressed or implied in any forward-looking statements.

[1]https://www.angloamerican.com/media/press-releases/2026/20-02-2026

[2]https://www.angloamerican.com/about-us/at-a-glance

[3]https://www.reuters.com/business/anglo-american-hit-by-de-beers-writedown-posts-37-billion-loss-2026-02-20/

[4]https://rapaport.com/news/anglo-american-slashes-de-beers-value-in-half/

[5]https://www.reuters.com/business/teck-resources-beats-quarterly-profit-higher-copper-prices-output-2026-02-19/

[6]https://www.mitsubishicorp.com/jp/en/news/release/2026/20260220001.html