Investing.com -- Anglo American (JO:AGLJ) (LON:AAL) shares rose more than 2% on Thursday following its 2024 financial results, which showed a slight EBITDA miss but marked progress in the company’s restructuring efforts.
The diversified mining giant reported an EBITDA of $8.46 billion for 2024, down 15% year-over-year and slightly below the consensus forecast of $8.6 billion.
Despite this, Anglo American exceeded expectations in key areas, including net debt reduction and dividend payouts.
Net debt came in at $10.6 billion, below market consensus, with further reductions expected following planned asset sales.The full-year dividend was set at $0.64 per share, aligning with its payout policy.
Anglo American reduced the value of its De Beers diamond business by $2.9 billion, now worth $4.1 billion.
This move reflects ongoing sector challenges and the company’s shift toward core mining assets.
The restructuring gained further traction with the planned merger of Anglo’s Los Bronces copper mine in Chile with Codelco’s adjacent Andina mine.
The combination could increase production by 120,000 tonnes per year by 2030 while cutting costs by 15%, potentially adding $5 billion in net present value, with Anglo’s share at 50%.
For 2025, unit cost projections are $39 per wet metric tonne (wmt) for Kumba Iron Ore, $971 per platinum group metal ounce (PGMoz) for Anglo Platinum, $32/wmt for Minas Rio, and $1.51/lb for copper (in line with consensus estimates of $1.52/lb).
Capital expenditure (capex) guidance for Anglo’s ‘RemainCo’ operations—covering copper, iron ore, and crop nutrients—stands at $3.1 billion for 2025, surpassing consensus expectations of $2.5 billion.
Capex is projected at $3.0 billion for 2026 and 2027, above analyst estimates. This includes deferred spending at Woodsmith and a cost overrun at the Collahuasi water plant.
Anglo American also disclosed transaction costs and tax implications related to the Anglo Platinum demerger for the first time, estimating a financial impact of $0.4-$0.5 billion.