- Megamerger with Teck: Anglo American announced a $4.5 billion special dividend and merger with Teck, creating Anglo Teck with $6.9 billion EBITDA in 2025, 9% up year-on-year.
- Portfolio Optimization: $2.5 billion from Valterra stake sale and $1.8 billion in cumulative cost savings since 2024, including a 21% headcount reduction.
- Copper Production Growth: 125,000-tonne short-term increase at Los Bronces and Quellaveco, with capital payback at Quellaveco achieved in 4 years.
- De Beers Exit Strategy: $0.5 billion EBITDA loss, but $0.9 billion inventory reduction and active discussions with strategic buyers for the diamond business.
- Financial Leverage: Net debt/EBITDA at 1.3x, with $3.1 billion capex guidance for 2026–2028, targeting lower leverage post-portfolio transactions.
Operational Highlights
The company's operational performance was strong, with copper and iron ore businesses performing well and delivering on production guidance. The copper business saw a 125,000-tonne growth in the short term, driven by increased production at Los Bronces and Quellaveco. Iron ore production was strong, with Kumba's UHDMS tie-in project progressing to plan and on budget.
Merger with Teck and Portfolio Optimization
The merger with Teck is expected to create long-term value through industrial and financial synergies, cementing the combined company as a world-leading copper producer. The company made progress on portfolio optimization, with the sale of steelmaking coal assets and nickel business. De Beers, the diamond business, was also being exited, with discussions underway with strategic parties.
Valuation and Outlook
With a P/E Ratio of -15.45 and an EV/EBITDA of 10.21, the market is pricing in significant challenges for the company. However, the merger with Teck and the company's focus on cost control and operational excellence are expected to drive long-term value creation. Analysts estimate next year's revenue growth at 10.0%, driven by the company's copper assets and the merger with Teck.
Cost Savings and Guidance
The company's cost savings program delivered $0.6 billion in 2025, with a total of $1.6 billion in realized savings since 2024, and a commitment to $1.8 billion in total cost savings. The company's guidance for 2026 includes copper unit costs of around $1.72 per pound, and premium iron ore unit costs of around $41 per tonne.
Regulatory Approvals and Next Steps
Regulatory approvals, including those in China, are still required for the merger to complete, with a timeline of 12-18 months. As Duncan Wanblad mentioned, "Nothing to comment on regarding China regulatory process; it's going as expected, 12 to 18 months."