Anglo American, the FTSE 100 mining heavyweight, has revised down its full-year copper cost guidance after a stronger-than-expected first half, but the update was overshadowed by a sharp deterioration in its diamonds and coal businesses. The group reported that both its De Beers diamond unit and its coal operations swung to negative earnings before interest, tax, depreciation and amortisation (EBITDA) in the six months to June, underscoring the uneven performance across its portfolio.
The London-listed miner now expects copper unit costs to come in at the lower end of its previously stated range, thanks to higher ore grades and improved throughput at its South American operations. However, the positive news on copper was tempered by a challenging environment for diamonds, where weaker consumer demand in key markets such as China and the US has hit prices, and for coal, where a global oversupply has compressed margins.
Shares in Anglo American slipped in early trading on Thursday, declining around 1.8% to 2,340p, as the market digested the mixed signals. The FTSE 100 index itself edged 0.2% lower to 8,215 points, with mining stocks among the laggards. Analysts noted that while the copper division remains a bright spot—benefiting from the global energy transition and electrification trends—the drag from legacy assets continues to weigh on the group's overall valuation.
For UK investors and pension holders with exposure to the FTSE 100, Anglo American's performance matters because the miner is a significant constituent of the index. The company's strategic pivot toward copper, a metal critical for electric vehicles and renewable energy infrastructure, positions it for long-term demand growth. Yet the near-term pain from diamonds and coal highlights the risks still embedded in its portfolio, particularly as global economic uncertainty persists.
Market observers suggest that Anglo American's ability to execute its copper-focused strategy will be key to restoring investor confidence. The group has been streamlining its asset base, but the negative EBITDA in two major divisions raises questions about the pace of the turnaround. With a review of the diamonds business expected in the coming months, shareholders will be watching closely for further restructuring moves.