Anglo American's third-quarter production report offered a mixed picture: copper output fell 5% year-on-year due to disruptive snowfall in Chile, yet the miner kept its 2026 copper target intact and even raised its diamond production outlook for De Beers. The update, reported by Reuters, underscores how the company is juggling short-term operational hiccups with a sweeping portfolio overhaul.
Copper: A temporary setback?
Anglo produced 174,900 metric tons of copper in the July–September quarter, down from 183,500 tons in the same period last year. The drop was largely attributed to heavy snow that hampered operations at its Chilean mines. Despite the dip, management maintained its 2026 copper guidance of 700,000–760,000 tons, signaling that it views the weather-related disruption as temporary and expects improved ore quality at key sites like Collahuasi and Quellaveco.
Copper remains a cornerstone of Anglo's strategy, especially as global demand for the metal is buoyed by electrification and AI data center growth. The company's ability to hit its medium-term target will be closely watched by investors, particularly after rival BHP also reported a sharp drop in copper output due to operational issues at Escondida.
De Beers: A sale in motion
The bigger story is Anglo's ongoing exit from the diamond business. The company has completed the planned 2025 demerger of its South African platinum operations, but the divestitures of its coal and nickel assets, as well as the sale of De Beers, are still in progress.
On diamonds, Anglo raised De Beers' annual production outlook to 25–28 million carats, up from a previous range of 21–26 million. The increase follows Anglo's acquisition of full ownership of Canada's Gahcho Kué mine. However, the company also flagged headwinds from lab-grown diamond competition and weak prices, which have led to losses and write-downs in the division.
CEO Duncan Wanblad described the sale process as “challenging.” According to Reuters, a consortium led by Gareth Penny and backed by luxury group Richemont is the preferred bidder, while Botswana—which holds a 15% stake in De Beers—is also negotiating to increase its ownership.
What it means for investors
For Anglo American shareholders, the De Beers exit is a key part of the company's strategy to simplify its portfolio and focus on core metals like copper. But the raised diamond output target could complicate negotiations.
“Raising production targets sounds positive, but in a soft diamond market it can mean more stones sitting in inventory and more cash tied up funding day-to-day operations,” said a market analyst. If prices remain weak, those stockpiles may need to be marked down, which directly hurts earnings and can strain the balance sheet.
That dynamic matters for deal-making. A business that's absorbing cash tends to shift leverage to the buyer. In practice, that can show up as a lower valuation, more conditions attached to the price, or a structure that protects the buyer—whether it's the Penny-led group or Botswana—from further write-down surprises. For Anglo shareholders, that means less certainty on what the exit is ultimately worth.
Meanwhile, copper's medium-term outlook remains a bright spot. The metal is essential for electric vehicles, renewable energy infrastructure, and data centers, and US stockpiles have been swelling as demand patterns shift. Anglo's ability to recover from the Chile disruption and hit its 2026 target will be a key metric for investors to track.
As Anglo American continues to reshape itself, the market will be watching both the copper recovery and the final terms of the De Beers sale. For now, the company is holding its ground on copper while making progress on its portfolio transformation.
