Anglo American (LSE:AAL), the diversified miner focused on copper, iron ore and diamonds, reported underlying EBITDA from continuing operations of $4.0 billion for the six months ended 30 June, up 35% from $3.0 billion a year earlier.
Copper generated underlying EBITDA of $2.9 billion at a 60% margin, benefiting from favourable prices.
The company posted a loss attributable to shareholders of $0.9 billion for the half, driven by a reduction in the carrying value of its Steelmaking Coal business to reflect the terms of its agreed sale to Dhilmar for up to $3.875 billion in cash, including $2.3 billion upfront.
Net debt fell to $8.2 billion from $8.6 billion at the end of December, giving a net debt to underlying EBITDA ratio of 1.0 times.
The board declared an interim dividend of $0.23 per share, up from $0.07 a year earlier, in line with its policy of paying out 40% of underlying earnings.
"This performance stands us in very good stead as we progress the merger to form Anglo Teck, a global metals and minerals champion", chief executive Duncan Wanblad said.
Integration planning for the Teck merger is well-advanced, with completion targeted between September and March 2027, pending final anti-trust approval from China.
News Intelligence what this means for the company
Anglo American's first-half underlying EBITDA jumped 35% to $4.0 billion, driven by strong copper margins (60%) amid favourable prices, while the company advances its $3.875 billion sale of Steelmaking Coal to Dhilmar and progresses its merger with Teck toward a September 2027–March 2027 close pending China's antitrust sign-off. The headline loss reflects a write-down of the coal business to reflect sale terms, but net debt fell to $8.2 billion (1.0x EBITDA), and the board raised the interim dividend to $0.23 per share, signalling confidence in cash generation as portfolio reshaping nears completion.
- The coal sale and Teck merger together reshape Anglo American's commodity mix decisively toward copper and away from thermal coal, locking in near-term cash ($2.3 billion upfront from Dhilmar) to fund integration and the promised $4.5 billion special dividend post-merger.
- China's antitrust clearance remains the final gate; delay or conditions could push the Teck close into 2027 and alter the timing of shareholder returns.
The 35% EBITDA lift and falling net debt ratio (1.0x) confirm the portfolio pivot is working operationally, but the investment case now hinges entirely on Teck merger completion and China's approval. Copper strength is cyclical; the real value unlock is the combined entity's scale and the special dividend, both contingent on regulatory clearance.
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