Anglo American – carving a new portfolio

This insight examines the likely outcome of Anglo American's portfolio rationalisation which includes divesting or demerging assets in PGMs, met coal, diamonds and nickel. In H1 results Anglo American provided further details on the strategic overhaul, which includes focusing on its core copper and iron ore operations. The company also demonstrated substantial progress in its operational excellence journey being on track to deliver a total of $1 billion in cost savings by the end of 2024. Our assessment cuts across the four commodity segments for which Anglo American has established dedicated transaction teams. We present our views on the likely timing, structure and proceeds of the rationalisation plan: - PGMs - relatively straightforward in specie distribution in 2025 - Diamonds - Origins strategy to deliver exit through listing or sale - Coal - sale at premium likely, Grosvenor complicates timeline - Nickel - strategic suitors could emerge for consistent cash generators