BHP Shares Up 2.3% as Anglo Cuts Dividend 64% on $2.3bn Writedown
BHP shares rose 2.33% after Anglo American posted a $3.7 billion loss on a $2.3 billion De Beers write-down and cut its dividend 64% to 23 cents per share. The action raises total De Beers writedowns to $6.8 billion and highlights diamond-unit strain after BHP’s failed $49 billion takeover bid.
1. De Beers Writedown Details
Anglo American recorded a $3.7 billion loss in the latest quarter driven by a $2.3 billion non-cash impairment at its De Beers diamond business. That charge brings total write-downs to $6.8 billion over the past year and pushed the group into an overall loss despite improved operational earnings.
2. Dividend Reduction
The company slashed its dividend by 64%, declaring 23 cents per share versus 64 cents a year earlier, reducing cash outlays from roughly $800 million to $200 million. Management cited weak diamond prices and the need to preserve balance-sheet strength during ongoing portfolio restructuring.
3. Impact on BHP Shares
BHP Group shares climbed 2.33% on the news as investors priced in sector challenges and re-evaluated merger prospects. The jump reflects relief that BHP avoided similar impairments and underscores market sensitivity to dividend stability in mining peers.
4. M&A Context
This development comes after BHP’s failed $49 billion bid for Anglo American two years ago, which prompted Anglo to simplify its portfolio and focus on copper and iron ore. The continued strain on De Beers has intensified discussions around divestment and joint ventures in the diamond industry.