Anglo American’s first set of results since shrugging a off a takeover attempt from Australian rival BHP were weighed on by a set back in one of its Yorkshire crop nutrients facilities.
Revenue at the FTSE 100 miner fell by eight per cent in the six months ended June 30, from $15.7bn (£12.2bn) in 2023 to $14.5bn (£11.3bn).
Underlying earnings before investment, tax, debt and amortisation dropped fallen three per cent from $5.1bn (£4.0bn) to $5bn (£3.9)bn. But the high copper price was a boost for the firm.
The slide at the firm, which is undergoing a major restructuring to focus on its core asset base of copper, iron ore and crop nutrients, was partially attributable to delays at one of its new nutrient facilities, Woodsmith.
Development of the North York Moors site, which would help the miner extract what is is the largest known deposit of a natural fertiliser, was slowed in May “in order to support deleveraging of its balance sheet”.
The firm made impressive progress in reducing its cost base and capital expenditure; a core tenet of its restructuring plan. It said it was on track to reduce annual costs by roughly $1.7bn (£1.3bn) and slash its capex by approximately $1.6bn (£1.2bn).
Duncan Wanblad, chief executive of Anglo American, said: “I am very encouraged by a strong operational performance that delivered steady volumes and a four per cent improvement in unit costs, while still facing weak cyclical markets for PGMs and diamonds.
“We are moving at pace to create a much more agile and structurally profitable mining company focused on our exceptional quality Copper and Premium Iron Ore businesses, which both continue to perform very strongly, while maintaining our growth optionality in crop nutrients.”
The results come at a momentous time for the miner, as it undergoes a major restructuring in the wake of its interest from BHP. The firm has pledged to sell or demerge its diamond business De Beers, and earlier this week its platinum miner, Anglo American Platinum (Amplats) demerged from the business.
Some shareholders had hoped to see the London-listed firm use the results to put more meat on the bones of its restructuring plan, but it appeared to stick to the wording it used previously, with Wanblad saying: “We are committed to completing the key elements of this transformation by the end of 2025, creating a simpler, highly valued mining company with extensive growth options and considerable strategic flexibility.”