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Anglo American suffers $3.7 billion loss due to De Beers write-down
Anglo American reported a $3.7billion loss on Friday, after another writedown of its diamonds business. The miner is pushing ahead with plans to shed its non-core assets as well as complete its merger with?Teck Resources. Anglo has wrapped up an uneven reporting season for London listed mining groups. This highlights the divergent fortunes of the industry as Antofagasta benefitted from rising copper prices, while other diversified peers suffered due to weaker markets in iron ore and diamonds. The company recorded a $2.3bn pre-tax impairment on its De Beers division, reducing carrying value from over $4bn to $2.3bn. Analysts' estimates of EBITDA or core earnings at $6.4 billion was in line. The company declared a $0.23 dividend per share or approximately $200 million. This was down from $0.64 per share or $800 millions a year ago. By 0919 GMT, the company's shares were up 1.7%. Anglo, who in July discontinued its?nickel-and steelmaking coal assets it seeks to sell, wants to focus on iron ore and copper assets. The company announced that it is moving forward on plans to sell De Beers. The company announced that it could partner with Mitsubishi Corp to develop its Woodsmith Fertiliser Project in northern England. It had previously placed the project on maintenance and care. "We ?believe this potential partnership would add optionality and time to pursue further syndication/partnerships," said Goldman Sachs analysts. DE BEERS - SPIN OFF Anglo has revised its value of De Beers following the unit's?third consecutive year of production decline. De Beers also lowered its production forecast for 2026 due to the weak demand and high inventory levels that continue to affect the diamond market. Anglo has already written off De Beers value by $3.5 billion in the last two years. Duncan Wanblad, CEO of Anglo Diamonds told reporters that there was a large supply of rough diamonds on the market. He said that the sale of De Beers was at an advanced level. He said: "We must... reach final binding bids, then choose the partner we wish to work with and negotiate with all parties involved including the Botswana government." Wanblad stated that multiple consortia have shown interest in De Beers. Anglo had put it up for sale to facilitate a wider restructuring. Botswana has announced that it will increase its shareholding. It is already a 15% shareholder, and sources 70% of its annual rough production. Angola is pursuing a stake of 20-30% in De Beers. This proposal is being discussed with other African producers of diamonds, according to a senior official at the Angola mining ministry. Wanblad is "optimistic", he said, that a contract will be signed in the upcoming year. TECK TIE UP Anglo, the only major miner that has secured a deal despite companies being under pressure to increase their copper portfolios announced in September a merger of $53 billion with Teck, which is a stock-only, no-premium transaction. Wanblad, who spoke on Friday, said that he expected the deal to be approved between September and March as China and South Korea's regulatory approvals are still pending. Anglo American and BHP Group, the world's biggest mining company, were both attempting to acquire Anglo. The combined entity will produce over 1.2 million tons of copper per year. The demand for copper, a metal used in the construction and power industries, will increase due to electric vehicles and artificial intelligent. Clara Denina is the reporter. Mark Potter, Jan Harvey and Clara Denina edited the report.
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Anglo American suffers $3.7 billion loss due to De Beers writedown
?Anglo American reported a $3.7billion loss?on Friday, after taking a?writedown?on its diamonds' business. The miner is pushing ahead with its plans to shed its non-core assets as well as complete its merger with Teck Resources. Anglo has wrapped up the mixed reporting season of London-listed mining companies, highlighting the divergent fortunes in this industry. Antofagasta, for example, benefited from rising copper prices, while other diversified groups struggled to cope with weaker markets for iron ore and diamonds. The company declared a $0.23 dividend per share or about $200 million. It booked a $2.3billion pre-tax impairment related to its De Beers division. This was down from $800 million or $0.64 per share a year ago. Analysts' estimates of core earnings (EBITDA) of $6.4 billion are in line. The share price of the company opened London 1.3% higher. Anglo is focusing on iron ore and copper assets after selling its nickel and steelmaking assets in July. The company?demerged their platinum business in May?and announced that it was moving forward with plans for selling De Beers. DE BEERS SPIDER-OFF Anglo reassessed De Beers' value after the unit reported a third consecutive year of production decline. De Beers also lowered its production forecast for 2026 as low demand and high inventories continue weighing on the diamond industry. Anglo has already reduced De Beers value by $3.5 billion in the last two years. Duncan Wanblad, CEO of Anglo Diamonds told reporters that there was a large supply of rough diamonds on the market. He said that the sale of 'De Beers' is well underway. "We have to... finalize?binding offers and then choose the partner we want to work with, and negotiate with all parties involved including the Botswana government," he said. Wanblad stated that multiple consortia have shown interest in De Beers. Anglo had put it up for sale to help with a "broader restructuring". Botswana has already stated that it plans to "increase" its stake. The country is a 15 percent shareholder, and the source of 70 percent of its annual rough-diamond?production. Angola wants to own 20-30% of De Beers. This proposal is being discussed with other African diamond producers. Wanblad is "optimistic", he said, that a contract will be signed in this year. Clara Denina reported. Mark Potter, Jan Harvey and Clara Denina edited the report.
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US ambassador says US is negotiating with India over Venezuelan oil sales
U.S. officials say that they are in "active negotiations" to sell Venezuelan crude oil to India, helping India diversify their sources of crude oil. Sergio Gor, the Envoy to India said Friday. The U.S. made diversification from Russian crude an important condition to reducing tariffs on Indian goods, the third largest oil consumer and importer in the world. Gor, a reporter on the sidelines of a New Delhi event where India joined the U.S. led Pax Silica initiative to build a silicon supply for high-tech devices, said: "The Department of Energy speaks with the Ministry of Energy in this country. We hope?to hear some news very soon." This month, U.S. president Donald?Trump agreed to reduce tariffs on Indian products to 18% as part of an interim trade agreement. He also removed the 25% punitive tax?after India agreed not to purchase Russian oil which, according to the U.S., helps finance?Russian invasion of Ukraine. He said India would buy more oil, possibly from Venezuela and the U.S. Gor stated that a final trade agreement with India would be signed "sooner rather than later", as "a few tweaking points" were required. He added that Prime Minister NarendraModi had invited Trump to India. India's Trade Minister, Piyush Ghoyal, stated on Friday that the interim trade agreement is expected to take effect in April, and that the U.S. will likely issue a formal notice this month to lower its tariff on Indian products to 18%. After Russia's invasion in 2022, the U.S. and its allies imposed sanctions against Russia's energy industry. India became the largest buyer of Russian crude oil, which it purchased at a rock-bottom price. This upset the Western nations. "On oil, there is an agreement... we have seen India diversify their oil. There is an agreement. It's not about India. Gor stated that the United States does not want anyone to buy Russian oil. Last month, it was reported that the U.S. had "pitch" to India the sale of Venezuelan crude oil in order to replace Russian oil imports. After capturing Venezuelan President Nicolas Maduro and negotiating a supply deal with interim president Delcy Rodriguez, the government granted trading houses 'Vitol' and 'Trafigura" licences to sell and market?millions barrels of Venezuelan crude oil. Reportedly, the state-owned Indian Oil Corp., Hindustan Petroleum, and Bharat Petroleum, as well as private sector refiners Reliance Industries, HPCL-Mittal Energy, and Reliance Industries have all ordered Venezuelan crude oil.
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Indonesia Stock Exchange to release $11 billion in shares amid global scrutiny
According to an IDX official and an analysis of publicly available data, nearly one third of the companies listed on the Indonesia Stock Exchange - including some of its largest listings - would be affected. This could lead to over $11 billion of new'share supply. Indonesia has announced a number of capital market reforms following a warning from index provider MSCI, in late January, that the country could be downgraded to a frontier status as early as may due to market opacity which may have allowed for 'price manipulation. The plan includes a key component of raising the minimum level of free float for listed companies from 7.5% to 15%. According to IDX's assessment of the end of 2025, 267 of the over 900 companies listed on IDX would need to issue new shares, sell some of their holdings or buy back equity in order to go private. IDX director I Gede Nyoman Yetna stated that if no company chose to delist they would be required to offer the public a total of 187 trillion Rupiah worth ($11.08 billion). Liza Camelia Suryanata is the head of research for Kiwoom Sekuritas Indonesia. She said that if the increase in free float was properly designed, it could be a turning point to improve the quality and attractiveness?of Indonesian capital markets. She said that short-term volatility could undermine the confidence in this reform, which is what it aims to do. Since the beginning of time, exchanges have struggled to find ways to promote trading in tightly held stocks. A series of corporate governance reforms in Japan, such as asking companies to maintain 35% free float minimum, have helped the market and brought it onto the radar of foreign investors. Analyzed publicly available data in order to determine which Indonesian firms would be most affected. The Top 5 Barito Renewables Energy is the largest company in IDX by market capitalisation. According to publicly available data, the company owned by Indonesian billionaire PrajogoPangestu will need to sell shares worth more than $1.8billion to reach the 15% threshold. Other names on the list include?Bank Permata whose majority shareholder, Bangkok Bank, could be required to offer new shares worth around $450m, and Hanjaya Mandala Sampoerna controlled by U.S. Tobacco giant Philip Morris International at $420m. Bank Syariah Indonesia, the state lender, will need to issue shares worth $350 million, while Lim Hariyanto, an Indonesian nickel tycoon, will need to raise $230 million through secondary offerings. The companies have not responded to the request for comments. Hasan Fawzi, interim chief capital markets supervisor for the Financial Services Authority in Indonesia (OJK), has said that companies may be given up to three years of transition time. However, exact details are still pending. The Big Challenge Analysts warn that the oversupply of products could have a significant impact on valuations. The increase in free float was "good for transparency, but can our market cope with it? Will investor demand increase as well? One stock trader who refused to be named because he was not authorized to speak with media lamented this. Gilman Pradana nugraha, executive Director of the Indonesian Issuers Association, stated that regulators must be aware that not all companies will be ready right away. He said that "adjusting the free float" is not only a technical issue, but also relates to our strategy of managing valuation and stock price stability. Gilman stated that a 'timeline too short could potentially trigger unhealthy sales pressure. CREATING DEMAND The warning from MSCI has already caused some international investors reduce their exposure to Indonesian stocks. Confidence in the bond and money market of Indonesia is also declining due to concerns about fiscal health and independence of the central bank. To absorb the additional share supply, the authorities plan to double the equity investment limit for insurance companies and pension funds from 10% to 20%. Indonesia's social insurance fund BPJS Ketenagakerjaan and the sovereign wealth fund Danantara could both provide support. Retail investors could also demand the product. Retail transactions accounted for half of the daily average trading volume of 18 trillion rupiah in 2025. Bernadus WIJAYA, the chief executive officer of brokerage Sucor Sekuritas said that if MSCI maintains Indonesia's status as an "emerging markets" in May, then there will be a demand from foreign investors who are returning to Indonesia. Beyond Free FLOat Some analysts, however, said that the quality of overall market reforms would be closely monitored, rather than just a higher level of free-float. This is especially true with Indonesia's stock-frying, or "gorenggorengsaham", which are used to boost prices. Analysts also warn that ownership of certain firms may remain concentrated even with a larger free float. $1 = 16,885,0000 rupiah (Reporting and editing by Gibran Peshimam, Kim Coghill and Gayatri Sulaiman)
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Reliance and ICICI Bank recover after initial jitters in Indian stocks
Indian share benchmarks recovered from initial jitters to rise?by mid-day on Friday as heavyweight stocks clawed back some?of the previous session's loss. As of 12:11 p.m. IST, the Nifty '50?added 0.54%, to 25,592.6. The BSE Sensex rose 0.48%, to 82897.3. The indexes had dropped about 0.3% on the opening, adding to a drop of 1.5% in the previous session. This was their biggest single-day decline in over two weeks. 15 of 16 major sectors were higher. The small-caps, mid-caps, and large-caps all added 0.1% to 0.5% respectively. Naveen Vyas is the head of the?family office of Anand Rathi Global Finance. Reliance Industries, a heavyweight, and?ICICI Bank, a smaller company, both rose on Friday by 0.9% and 0.7 percent, respectively, following sags of 2.2% and 1.4% in the previous session. The volatility index, a measure for expected volatility in the market over the next 30 day, spiked to 14.36 this week, barely missing an eight-month-high hit during the run-up to February 1's federal budget. Brent crude oil has risen to $72 a barrel due to tensions in the Middle East. The rise in crude oil prices is a problem for India, the third largest crude importer in the world. "We're still not out of trouble. Vyas said that if Brent crude oil surpasses $75 a barrel and remains at that level for a few months, it could add further pressure to Indian stocks. The IT index, which fell 0.5% in the last quarter of 2018, was the only major sector to lose ground. This is due to the continued concern over AI-related disruptions on earnings. Reporting by Vivek M and Bharathrajeswaran, Editing by Rashmi aich, Ronojoy Mazumdar, and Harikrishnan Nair
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Mineral Resources makes an interim profit due to increased Onslow production and lithium rebound
Australia's Mineral Resources reported stronger-than-expected interim earnings on Friday, ?buoyed by steady nameplate-capacity output from its flagship Onslow Iron project ?and a rebound in lithium ?prices. Mineral Resources'?mining? services volumes rose by 22.1%, to a new record of 166 million wet tons. The group's Onslow Iron project reached nameplate capacity last August and its operations recovered following haul-road upgrades made after a road train accident earlier this year. Onslow Iron's production increased to 17.3 metric tonnes of wet iron on a 100 % basis, compared with 6.3 metric tons wet iron a year ago. The Mining Services division reported a?EBITDA for the first six months of A$488m, an increase of 29% over the previous year. This helped lift the group EBITDA to a record A$1.2b, a 286% jump from the last year. Board chair Malcolm Bundey stated that "Onslow Iron has now proven to be a cash-generative operation" and added that the mining services division "continues delivering superior performance." MinRes' Lithium division achieved a?underlying EBITDA (Earnings Before Interest and Tax) of A$167million, which is a tenfold rise from last year, as the price of the battery metal soared amid increasing battery storage demand, along with the squeeze in supply following the August production The underlying net profit was A$343 (US$242.16M) for the first half of the year. This is a significant improvement over the A$196.9 million consensus estimate by Visible Alpha. The financial and 'operating improvement of MIN is remarkable. Sandstone Insights analysts said that the company has not yet reached its promised land of distributing surplus cash to shareholders. However, it does have a plan and momentum to reach this goal. MinRes chose not to declare an interim dividend and instead focused on "deleveraging" amid significant scrutiny surrounding its capital expenditure at Onslow. After capital expenditures had driven?it up to A$5.3billion at the end of FY2025, this level had caused concern among investors. The lithium miner's shares rose up to 4.3%, reaching a two-week high. However, they closed more than 5% lower.
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ASIA GOLD - India discounts are widening as price volatility dampens the demand; China is on holiday
Gold demand in India remained low this week as volatility in prices discouraged buyers. Other major Asian hubs including China were closed for Lunar New Year holidays. Bullion dealers offer a discount on Up to $18 per an ounce for official domestic gold prices, inclusive of 6% import duties and 3% sales taxes. This is a significant increase from the previous week's discount of up $12. Jewellers in New Delhi are offering discounts on making charges to entice buyers. On?Friday the domestic gold price was trading at around 155,000 rupees for 10 grams. It had hit a high of 180 779 rupees in January before falling to as low as 133 687 rupees during February. Last month, gold exchange-traded fund inflows were strong, which offset a decline in jewellery demand. However, this month, demand has been weaker from both investment and jewellery segments, according to a Mumbai bullion dealer at a private banking institution. Data from the Association of Mutual Funds of India showed that flows to India's Gold ETFs had more than doubled since the previous month, to 240.4 billion rupies. This put them ahead of equity flow for the first ever time. This week, markets in China and Singapore were closed for Lunar New Year. As of 0540 GMT spot gold prices were trading at around $5,000 per ounce, up from the $4,403,24 low earlier in the month. Gold reached a record-high of $5,594.82 per ounce on Jan 29. In Japan Gold was sold with a $10 discount on?premiums up to $1. A precious metals trader in Tokyo said: "We saw some interest but it was not very active. Looks like (investors) will wait for a dip before buying." ($1 = 90.7275 Indian rupees) (Reporting by Ishaan Arora in Bengaluru and Rajendra Jadhav in Mumbai; Editing by Mrigank Dhaniwala)
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Indonesia and the US reach a tariff agreement of 19% on palm oil, other commodities, and other goods.
Indonesia and the United States have finalised a deal that will?cut U.S. levy to 19%, from 32%, on goods shipped out of Southeast Asia's largest economy. Jakarta has secured tariff exemptions for its top export, palm oi, as well as several other commodities. After months of negotiations, Indonesia's senior economist?Airlangga?Hartarto signed the agreement in Washington with U.S. trade representative Jamieson Greer. Airlangga, during an online media conference, said that the deal was a win-win for both countries. Palm oil was an important exemption for Indonesia, representing around 9% in its total exports. Airlangga announced that spices, coffee, cocoa and rubber from Indonesia would be exempted of tariffs. A DEAL IS COMING AFTER STARTING TO 2026 The 19% rate matches the U.S. agreements with Southeast Asian competitors such as Malaysia Cambodia Thailand and Philippines. Vietnam has a slightly higher rate at 20%. Malaysia, another important palm oil exporter, has also a tariff-free product for this product as well as cocoa and rubber. The deal follows a rough start to the year in Indonesian markets. Last month, index provider MSCI warned that the equity markets risked being downgraded to "frontier status" due to transparency issues. Moody's also cut the credit rating outlook of the country two weeks ago citing reduced predictability. Yose Rizal, the executive director of CSIS Indonesia, believes that investor confidence could increase if Jakarta used the U.S. agreement as a springboard to further reform. "If Indonesia could use some of its United States commitments as a basis to deregulation and multilateralize them, that would increase trust in Indonesia. That's something that should be taken advantage, optimized," said he. INDONESIA WILL ACCEPT US PRODUCT NORMS The deal stipulates that textile products from Indonesia are subject to a 0% tax under a quota system which is yet to be finalized. The quota is determined by the amount of U.S. textile materials, such as cotton or man-made fibers. Airlangga reported that the U.S. has dropped its request to add non-economic clauses to the agreement, including those related nuclear reactor development, the South China Sea and other issues. According to a White House Fact Sheet, Indonesia will in return remove tariff barriers from most U.S. goods across all sectors, and also address non-tariff 'barriers' such as the local content requirement. The United States will accept U.S. standards for vehicle safety, emission, medical devices, and pharmaceuticals. A DEAL TO SUPPORT US INTERESTS IN CRUCIAL MINERALS Analysts have said that the deal is also a response to Washington's concerns about China's stranglehold over many vital minerals and its offshoring to countries such as Indonesia. Indonesia will, under the agreement, implement "restrictions" on "excess production" by foreign-owned mining facilities. This is to ensure that production adheres to Indonesian mining quotes. Nickel, cobalt and copper are among the minerals that fall under this category. Jakarta has also agreed that it will take action against foreign companies operating within its jurisdiction if their practices are harmful to U.S. commercial interests. Indonesia will help the United States invest in vital minerals and energy sources, as well as work with U.S. firms to accelerate development of its rare earth sector. Airlangga stated that the deal would take effect 90-days after both parties complete all legal procedures. However, Airlangga added that changes may still occur if both parties agree. The deal was made in Washington and President Donald Trump invited Prabowo to the first meeting of the Board of Peace. Prabowo, and Trump signed a document on Friday titled "Implementation Agreement Toward a New Golden Age for the U.S. - Indonesian Alliance", which according to the White House would help both countries strengthen their economic security and grow. In the past week, Indonesian companies and U.S. firms signed agreements worth $38,4 billion. (Reporting and editing by John Mair; David Stanway, Edwina Gibbs, and Stanway Gayatri Sulaiman)
Gold as a safe-haven amid tariff uncertainty before August 1 deadline
Gold prices increased 1% on Friday as traders sought out the safe-haven asset amid continued tariff uncertainty as President Donald Trump's deadline of August 1, to conclude negotiations, approaches.
As of 855 a.m., spot gold rose 1% to $3,308.07 an ounce. ET (12:55 GMT).
U.S. Gold Futures rose 0.3% to $3.306,10.
We've seen a rise in trade uncertainty, as we near the August 1st tariff deadline... a slight revival of safe haven bids," said Peter Grant.
The midpoint is around $3,312/oz. We tested this level today. I would probably be more optimistic if the week's highs were to surpass those of last week. Trump announced a series of tariffs on Wednesday on the import of goods and copper from Brazil and South Korea. The deadline for increased tariffs in the U.S. is August 1.
Inflation in the United States increased in June, as import tariffs began to increase the price of certain goods. The PCE Index rose by 0.3% in June after a 0.2% increase that was upwardly revised in May.
Fed Chair Jerome Powell made comments following the decision that undermined confidence in the idea that borrowing costs will begin to drop in September.
In a low interest rate environment, gold is an asset that does not yield any income.
Investors are now waiting for the U.S. Non-Farm Payrolls Data on Friday to get more clues about the Fed's interest rate path.
Silver spot fell by 1.3% to $36.66 an ounce, the lowest level since July 7. Platinum dropped 0.5% to 1,306.98 while palladium rose about 0.9% to 1 215.7.
Jim Wyckoff said that it would not surprise him if the strong selling pressure on silver futures was partly due to the sympathy selling that occurred amid the massive copper market collapse seen in the last two days.
Trump shocked the market by announcing on Wednesday that the U.S. will impose a tariff of 50% on copper pipes and wires, which has caused the COMEX copper exchange to drop more than 20%. (Reporting from Sarah Qureshi in Bengaluru and Noel John; editing by Shreya Biwas)
(source: Reuters)