Anglo American to Face Revenue & Profit Decline Across Key Segments in 2023

Mining giant Anglo American (LSE: AAL) is expected to see revenues decline across key segments in fiscal 2023, including: Platinum Group Metals (PGM), Coal, and De Beers (diamond division). Specifically, De Beers revenues are estimated to drop by -35% year over year, followed by PGM revenues declining by -31%, and Coal by -18%. The company’s smaller revenue segments such as Nickel and Manganese are expected to decline by -21%, and Crop Nutrients and others by -26%. Overall, total revenues for 2023 are projected to decrease by -12% to $30.8 billion.

A look at Anglo’s operating profits by segment also portrays a challenging picture in fiscal 2023, particularly for the company’s De Beers, PGM, and Coal segments. De Beers is estimated to see an operating loss of $211 million in fiscal 2023 due to a combination of factors including lower pricing and demand, influenced by macroeconomic headwinds. Furthermore, a drop in palladium and rhodium prices is expected to squeeze profits for Anglo’s PGM segment. The PGM segment is estimated to see its operating income decline by -80% year over year in 2023, generating an operating income of $813 million, much lower than the $4 billion generated in 2022. Similarly, the company’s coal segment is projected to see operating incomes decline by -66%.

Sector: Materials
Industry: Diversified Metals & Mining
Ticker: AAL_UK