After previous charges of $2.6 billion in 2023 and $2.9 billion in 2024, De Beers is now valued at $2.3 billion – a fraction of what it was worth just a few years ago.
The impairment left Anglo with a net loss of $3.7 billion for the year, compared with a loss of $3 billion previously. Losses at De Beers also rose sharply to $511 million, up from just $25 million the year before, as the company suffered its third straight production decline and cut its 2026 production forecast.
“There is an abundant supply of rough diamonds on the market right now,” CEO Duncan Wanblad told reporters.
The diamond sector is being put under pressure by several forces at the same time. US tariffs on India, where most rough diamonds are cut, have disrupted trade flows. Competition from lab-grown stones has also increased, leading to the erosion of market players’ pricing power.
Anglo has been trying to exit diamonds as part of a major restructuring announced after it fended off a £39 billion takeover approach from BHP (ASX:BHP,NYSE:BHP,LSE:BHP) in 2024. The plan includes divesting the diamond, coal and platinum units and refocusing on copper and iron ore.
Wanblad said the sale of Anglo’s 85 percent stake in De Beers is at an advanced stage, with several credible bidders in the process in addition to talks with Botswana. The country currently has 15 percent of the trade and supplies approximately 70 percent of the annual production of rough diamonds.
Wanblad said he is “optimistic” that the company would “see a deal signed” this year.
Despite the hit from De Beers, Anglo’s underlying earnings before interest, taxes, depreciation and amortization rose 2 percent to $6.4 billion, supported by strong copper prices. The company declared a dividend of $0.23 per share, compared to $0.64 a year earlier, while net debt fell to $8.6 billion.
Copper and iron ore remain the mining industry’s key profit drivers and are expected to anchor profits once the restructuring is complete.
Anglo’s proposed combination with Canada’s Teck Resources (TSX:TECK.A,TECK.B,NYSE:TECK,OTCPL:TCKRF), which would expand its copper portfolio with assets including the Quebrada Blanca mine in Chile, has been approved by shareholders and is awaiting regulatory approval.
Yet diamonds remain a drag at a time when the broader sector is facing structural change. Manufacturers are currently struggling with falling prices, laboratory competition and changing consumer trends.
Don’t forget to follow us @INN_bron for real-time updates!
Securities Disclosure: I, Giann Liguid, have no direct investment interest in any company mentioned in this article.
#Anglo #Americans #diamond #dilemma #Beers #fell #billion #market #downturn