Anglo American, a global mining giant, faces pressing calls for a comprehensive restructuring to enhance its profitability and rejuvenate its share price, which has seen a significant decline of over 10% since the start of 2024. This downward trend is largely attributed to the faltering form and demand for commodities. With its diverse portfolio spanning copper, iron ore, diamonds, and platinum group metals (PGMs), the company's recent annual results have spotlighted the challenges it faces across several segments.
The company's EBITDA experienced a 31% decrease, with a notable 73% drop in the platinum group metals sector, which has been hit hard by reduced demand from the automotive industry. Additionally, the diamonds segment saw a dramatic 95% earnings decrease, plagued by oversupply issues amidst a weakening economic outlook. Despite these setbacks, Anglo American's copper and iron ore divisions offered some relief, posting increases in production and sales prices.
To navigate these turbulent times, Anglo American plans to scale back investments and offload its least profitable assets in the coming years. Specific attention will be given to the PGMs and diamonds segments, where the company will seek to implement cost-saving measures and explore asset sales. This strategic shift is deemed essential for improving the company's financial health and positioning it for a rebound in share value.
