Anglo American’s 2025 adjusted EBITDA for key copper and iron ore businesses increased 6% to USD 6.9 billion, driven by higher prices. However, a loss in other divisions led to a 70% decrease in adjusted net profit after tax, down to USD 610 million. The company declared a final dividend of USD 0.16 per share for a total of USD 0.23 in 2025, in line with a 40% payout ratio target.

Analysts retain a GBX 2,200 fair value estimate for Anglo American, noting shares trade at a 65% premium to intrinsic assessment with a forward P/E of 30. The upcoming merger with Teck to form Anglo Teck is expected to create a copper-focused business, with iron ore and zinc as additional commodity exposures. Regulatory approvals are in process, with a completion expected later in 2026 or early 2027.

Anglo Teck’s copper business, situated in the second quartile of the industry cost curve, is expected to produce 970,000 metric tons in 2027, up from 830,000 in 2025. With long mine lives and a midcycle copper price assumption of USD 3.80 per pound, the valuation is based on the estimated long-run marginal cost of production. Mines like Quellaveco, Collahuasi, Los Bronces, and Quebrada Blanca 2 have extended life spans and expansion options.

Read more at Morningstar: Anglo American Earnings: Improved Copper and Iron Ore Results Offset by Its Other Businesses