Anglo American (LSE:AAL) delivered a steady operational performance during the second quarter, maintaining copper production at 173,200 tonnes while premium iron ore output declined only modestly following planned maintenance at Kumba and lower grades at Minas-Rio. The miner also reduced its 2026 unit cost guidance for its copper operations in Chile and Peru, lowering overall production costs through stronger by-product credits and continued cost discipline despite rising fuel and consumables expenses linked to geopolitical tensions in the Middle East.
Asset reshaping continues alongside operational progress
Production increased significantly across the manganese and rough diamond businesses, while steelmaking coal and nickel volumes were broadly flat to slightly lower. Preliminary guidance indicates that both the De Beers and steelmaking coal divisions are expected to report negative underlying EBITDA for the first half of the year.
Anglo American also continued to execute its portfolio transformation strategy. During the quarter, the company agreed the sale of its Australian steelmaking coal business, progressed planned divestments of its De Beers and nickel operations, and continued advancing the proposed merger with Teck. The transaction is intended to strengthen Anglo American’s position as a copper-focused mining company while reducing its exposure to non-core assets.
Mixed financial backdrop balanced by strategic momentum
The company’s outlook continues to reflect weaker recent financial performance, with declining revenue and consecutive net losses weighing on sentiment. However, positive free cash flow generation, ongoing cost-saving initiatives and progress on debt reduction provide important support.
Technical indicators also remain favourable, with the shares continuing to trade above key moving averages and maintaining positive momentum. Management commentary highlighted continued operational improvements and strategic progress, although valuation remains mixed due to the company’s negative price-to-earnings ratio despite an attractive dividend yield.
About Anglo American
Anglo American is a global diversified mining company producing copper, premium iron ore, manganese, diamonds, steelmaking coal and nickel. The group is repositioning its portfolio towards higher-margin commodities that are expected to benefit from long-term demand trends, particularly copper, while divesting businesses that are considered non-core to its future strategy.
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