Anglo American Plc reports mixed results amid portfolio shift

Anglo American plc (LON:AAL) has announced it production report for the first quarter ended 31 March 2025.

Duncan Wanblad, Chief Executive of Anglo American, said: “We have had a strong start to the year in Copper and Iron Ore, with both businesses performing in line with guidance. In Copper, Quellaveco and Los Bronces are both performing well, helping to offset the expected lower grades and variability in recoveries at Collahuasi. In Iron Ore, Kumba posted another solid quarter and increased iron ore sales as Transnet saw better rail logistics performance, and Minas-Rio had another excellent quarter. Our focus on operational excellence is delivering valuable stability to our simplified portfolio which provides a strong base for the rest of the year.

“We are making good progress with our portfolio simplification as we prepare to complete the transactions through which we will exit our PGMs, Steelmaking Coal and Nickel businesses. The demerger of Anglo American Platinum is expected to be effective from 31 May, subject to shareholder approval on 30 April. The sale of our Steelmaking Coal business to Peabody Energy and the sale of our Nickel business to MMG Singapore Resources continue to target completion by Q3 2025. In the first quarter we finalised a new long-term diamond sales agreement with the Government of Botswana and we continue to pursue a dual track process to divest our interest in De Beers, which we are committed to completing at the right time and when market conditions allow.

“2025 is undoubtedly a year of portfolio and organisational transition for Anglo American and we will emerge as a highly differentiated, sustainably higher margin and higher return on capital employed investment proposition, well positioned for our next phase of growth and value delivery. While the impact of tariffs on the global economy is uncertain in the short-term, we have conviction in the strong longer-term outlook for our products, which have scope to become even more important to the changing global economy in coming years. Our restructuring and cost savings programme remains on track, giving us confidence that we are well on our way to reshaping our business and embedding far greater resilience, both through the cycle and in the current volatile macro environment.

“Looking ahead, we are working at pace with Codelco to secure definitive agreements later this year to develop a joint mine plan for our respective Los Bronces and Andina copper mines – both world-class in their own right. We are also advancing our considerable pipeline of organic growth options, with the recent designation of our polymetallic Sakatti project in Finland as a ‘Strategic Project’ by the European Commission further increasing confidence in our growth path to 1 million tonnes of annual copper production.”

 Q1 2025 overview

• Copper production was 168,900 tonnes, reflecting higher production from Peru as a result of higher grades, offset by planned lower production in Chile, which resulted in a 15% decrease year-on-year.

• Iron ore production increased by 2% to 15.4 million tonnes, primarily driven by a strong first quarter performance from Minas-Rio.

• Manganese ore production decreased by 60% to 317,000 tonnes, primarily due to the ongoing temporary suspension of the Australian operations following the damage caused by a tropical cyclone in March 2024. Export sales are expected to resume in the June 2025 quarter.

• Production from our Platinum Group Metals (PGMs) operations decreased by 17% to 696,300 ounces, primarily reflecting planned lower purchase of concentrate volumes, as well as heavy rains and widespread flooding which impacted own mined production, primarily at Amandelbult.

• Steelmaking coal production was 41% lower at 2.2 million tonnes, primarily due to the underground fire at Grosvenor in June 2024. Excluding the impact of Grosvenor and Jellinbah⁶, production increased by 11%, reflecting higher production at the Dawson open cut mine and the Aquila underground mine.

• Nickel production increased by 3% to 9,800 tonnes, reflecting operational stability at Barro Alto.

• Rough diamond production decreased by 11% to 6.1 million carats, reflecting the continued production response to the prolonged period of lower demand.

(1) Contained metal basis. Reflects copper production from the Copper operations in Chile and Peru only (excludes copper production from the Platinum Group Metals business).

(2) Wet basis.

(3) Produced ounces of metal in concentrate. 5E + gold (platinum, palladium, rhodium, ruthenium and iridium plus gold). Reflects own mined production and purchase of concentrate. 

(4) Reflects nickel production from the Nickel operations in Brazil only (excludes 4.2kt of Q1 2025 nickel production from the Platinum Group Metals business).

(5) Production is on a 100% basis, except for the Gahcho Kué joint operation which is on an attributable 51% basis.

(6) Anglo American’s attributable share of Jellinbah was 23.3%. Anglo American agreed the sale of its 33.3% stake in Jellinbah in November 2024, and this transaction completed on 29 January 2025. Production and sale volumes from Jellinbah post 1 November 2024, after the sale was agreed, have been excluded from the Group’s production report.