Anglo American (LSE:AAL) delivered a solid operational performance in the fourth quarter of 2025, supported by strength in its Copper and Premium Iron Ore divisions, despite a year-on-year decline in overall copper production. Group copper output fell 14% to 169,500 tonnes, largely due to lower explained grades at the Quellaveco and Collahuasi operations. In contrast, Premium Iron Ore production increased 6% to 15.1 million tonnes, while manganese ore output rose sharply by 22% as Australian operations recovered from earlier weather-related disruptions.
Elsewhere in the portfolio, production of rough diamonds and steelmaking coal declined. These reductions were attributed to scheduled maintenance, market-led output adjustments and asset disposals. Despite these mixed divisional results, Anglo American confirmed that all continuing operations achieved their full-year 2025 production guidance targets.
Looking ahead, the company has modestly increased its production outlook for both copper and premium iron ore across the 2026–2028 period. Plans include the temporary restart of a second processing plant at Los Bronces to help offset lower output at Collahuasi. Anglo American expects its Chilean copper assets collectively to deliver more than 125,000 additional tonnes of production by 2028 compared with 2025 levels. The Quellaveco operation is also anticipated to generate strong cash flow and reach capital payback during 2026.
Strategically, Anglo American continues to streamline its asset base as part of a broader portfolio transformation. The company is progressing with the disposal of its steelmaking coal business, the planned separation of De Beers, and regulatory work related to its nickel operations. At the same time, Anglo American is advancing its proposed merger with Teck following regulatory clearance in Canada and significant shareholder support, a move expected to strengthen its position in critical minerals and high-grade iron ore markets.
From an investment perspective, Anglo American benefits from favourable technical indicators and positive strategic developments, including the merger initiative. However, its financial profile faces some pressure, with valuation concerns linked to a negative price-to-earnings ratio and a relatively low dividend yield.
More about Anglo American
Anglo American is a global diversified mining company with a streamlined portfolio focused primarily on copper, premium iron ore and manganese. The group is progressively exiting its interests in diamonds, steelmaking coal and nickel. Its key production operations include copper assets in Chile and Peru, premium iron ore operations in South Africa and Brazil, and diamond activities in Canada and southern Africa, with an increasing strategic focus on critical minerals and high-quality steelmaking inputs.
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