Anglo American, the parent company of De Beers, reported a net loss of $672 million for the first half of this year. This marks a significant decline compared to a net profit of $1.26 billion in the same period last year.
Earlier this year, Anglo American successfully defended itself against a takeover attempt by Australian competitor BHP. Around the same time, it announced plans to sell off De Beers, the diamond company it acquired for $5.1 billion in 2012, despite its current loss-making status.
As of June 30, Anglo’s net debt amounted to $11.1 billion, as disclosed in its Interim Results published last Thursday, July 25. The company’s revenue also saw a decrease of 8%, falling to $14.5 billion.
“We are moving quickly to transform into a more agile and profitable mining company, focusing on our high-quality copper and premium iron ore operations, both of which continue to perform strongly. We are also keeping our growth opportunities open in crop nutrients,” said Duncan Wanblad, CEO of Anglo American.
In May, Anglo American announced plans to either sell off or spin off its diamond and platinum businesses, along with nickel and steelmaking coal, in order to concentrate on its more profitable copper and other operations. Wanblad has estimated that the sale of De Beers could take between 18 to 24 months to complete.
