Anglo American’s Profits Surge to $4 Billion as Copper Strategy Pays Off

The $4 Billion Copper Boost

Anglo American posted a 35% jump in underlying profits from continuing operations to $4 billion for the first half, as its aggressive pivot to copper delivered a dramatic payoff. Earnings from its South American copper mines soared by two-thirds to $2.9 billion, meaning the red metal now accounts for roughly 70% of the group’s total profits. The company declared an interim dividend of 23 cents per share — more than triple the prior-year payout — lifting the stock 1.6% in London trading.

The results land as the miner nears the final stages of a sweeping restructuring designed to fend off last year’s takeover attempt by BHP. That plan is centred on exiting diamonds, coal and platinum to become a simpler, copper‑focused business. While copper boomed, the legacy units continued to bleed: the De Beers diamond business swung to a $113 million loss, and the company booked a writedown on its Australian steelmaking coal assets.

Anglo is already in talks to sell its 85% stake in De Beers for around $1 billion, with a deal expected in the second half. It has also agreed to sell the Australian coal operations to Delmar for up to $3.88 billion in cash. The restructuring’s centrepiece — the acquisition of Teck Resources’ copper assets — is still awaiting antitrust clearance from China, the last major regulatory hurdle, which will give Anglo access to the Quebrada Blanca mine in Chile adjacent to its own Collahuasi project.

How Copper Became the Engine of Anglo American’s Turnaround

Copper’s Dominance in the Portfolio

The half-year figures make plain that Anglo American has effectively become a copper company with some legacy attachments. At $2.9 billion, South American copper earnings exceeded total group profits from continuing operations just two years ago. With the Teck deal expected to close once China’s State Administration for Market Regulation approves it, the copper share of profits is set to rise further, concentrating the company’s fortunes on a metal in a structural supply deficit driven by the energy transition and surging artificial‑intelligence infrastructure build‑out.

The De Beers Exit and Why It Matters

De Beers’ $113 million loss underscores why the diamond business is no longer a strategic fit. A prolonged downturn in the diamond market, combined with the capital demands of marketing and mine operations, made the unit a drag on returns. A sale at around $1 billion would be a modest exit but removes a legacy distraction and frees management attention. Investors have long discounted the diamond business, so its disposal is seen as a positive catalyst that simplifies the equity story.

The Teck Deal and the China Factor

Chinese regulators hold the key to Anglo’s most important near‑term growth move. Approval would give Anglo full control of the Quebrada Blanca mine, which sits next to its existing Collahuasi project, creating a contiguous copper district in Chile with substantial synergy potential. The hold‑up is a reminder that even a company restructuring driven by Western capital can still depend on Beijing’s antitrust timetable. A rejection or prolonged delay would force Anglo to redeploy capital elsewhere, though few assets of comparable quality exist.

What This Means for Anglo American’s Valuation

The market’s initial 1.6% share price rise was modest, suggesting the results were largely in line with elevated expectations. However, the tripling of the dividend signals confidence in the copper‑heavy earnings stream and may attract income‑focused funds that previously avoided the stock because of its volatile, multi‑commodity profile. If the Teck deal closes and De Beers and coal sales are completed in the second half, Anglo will emerge as one of the world’s purest major copper plays — which historically commands a higher trading multiple.

Where Anglo American’s Strategy Points Next

For investors and industry watchers, the following developments will shape Anglo American’s near‑term trajectory:

• Chinese antitrust decision on Teck deal: The single biggest catalyst. A green light would immediately lift the copper profit contribution and trigger integration planning.
• De Beers sale closure: Expected in H2 2026 at around $1 billion. Completion will remove a loss‑making unit and further simplify the portfolio.
• Australian coal sale to Delmar: Up to $3.88 billion in cash proceeds, likely deployed toward debt reduction or additional returns to shareholders once the transaction closes.
• Copper price trajectory: With record prices driven by supply shortages and AI‑related demand, any cooling in those trends would directly impact Anglo’s earnings given copper’s 70% profit share.
• Shareholder returns: The dividend hike to 23 cents shows a willingness to pass cash back, and successful deleveraging post‑sales could support further increases or buybacks.