Shares in Anglo American PLC (LSE:AAL) fell 2.2% on Thursday after the group reported a 20% decline in underlying earnings for the first half, driven by challenging conditions in the rough diamond market.
EBITDA from continuing operations fell to $3 billion, down from $3.7 billion a year ago, as revenue slipped 7% to $9 billion.
The drop in profit prompted the board to set an interim dividend of $0.07 per share, sharply lower than the $0.42 declared this time last year.
Anglo’s copper and iron ore businesses continued to deliver strong margins of 48% and 44%, helping offset some of the weakness in diamonds.
The group is also advancing efforts to simplify its portfolio, with the demerger of Valterra Platinum completed and sales of its steelmaking coal and nickel operations agreed. Net debt stood at $10.8 billion at the end of June, with further asset sale proceeds expected in the coming months.