## Anglo American 2025 Preliminary Results Summary
**Key Highlights**
* **Transformational Year** 2025 marked a significant year for Anglo American with portfolio optimization, strategic progress towards merging with Teck, and strong operational performance.
* **Financial Performance**
* **Underlying EBITDA** Increased 2% to $6.4 billion, driven by higher copper and iron ore prices and cost savings.
* **Net Debt Reduction** Decreased to $8.6 billion, reflecting proceeds from asset sales and improved cash flow.
* **Dividend** $0.2 billion total cash dividends, consistent with 40% payout policy.
* **Operational Excellence**
* **Cost Savings** Delivered $1.8 billion in run-rate cost savings on schedule.
* **Cash Conversion** Strong cash conversion at 107% with reduced working capital.
* **Safety** Lowest ever injury frequency rate recorded, though sadly two fatalities occurred.
* **Portfolio Optimization**
* **Valterra Platinum** Successful demerger and sale of residual holding.
* **Steelmaking Coal** Sale progressing.
* **Nickel:** Sale agreedpending regulatory approval.
* **De Beers** Separation progressing.
* **Merger with Teck**
* **Approval** Received Investment Canada Act approval.
* **Shareholder Support** Overwhelming support from both companies shareholders.
* **Synergies** Aiming to unlock significant value through the merger, creating a global critical minerals champion.
* **Sustainability**
* **Emissions Reduction** On track to meet 2030 GHG emissions reduction target.
* **Water Management** Progress towards 50% reduction in fresh water abstraction in water-scarce areas.
* **Biodiversity** Initiatives for net positive impact on biodiversity.
* **Community** Continued focus on social performance and community development.
**Challenges**
* **De Beers** Challenging diamond trading conditions led to an underlying EBITDA loss of $511 million.
* **Impairment** $2.3 billion impairment related to De Beers due to changing market dynamics.
**Outlook**
* **Growth Projects** Continued investment in copper, iron ore, and crop nutrients projects.
* **Sustainability** Commitment to updated Sustainability Strategy with localized targets.
* **Merger with Teck** Focus on securing remaining regulatory approvals and completing the transaction.
**Overall** Anglo Americans 2025 results demonstrate progress in portfolio optimization, operational efficiency, and strategic growth, despite challenges in the diamond market. The merger with Teck is a key focus for unlocking future value and establishing a leading position in critical minerals.