LONDON, Feb 22 (Reuters) - Anglo American (AAL.L) , opens new tab will review its assets after a 94% plunge in annual profit and writedowns at its diamonds and nickel operations, the company said on Thursday.

The miner announced a $1.6 billion impairment charge on its De Beers diamond business owing to faltering demand and a $500 million impairment on its Barro Alto nickel mine as prices are hit by slowing demand from the electric vehicle sector.

"We are now in a process of systematically going through all of our assets in a review just to assess their role in the portfolio, their success in the portfolio, and absolutely nothing is off the table," CEO Duncan Wanblad told reporters.

The review is expected to take about a year, he said.

Anglo's shares were up 3.5% by 1040 GMT.

The London-listed miner's 2023 profit attributable to shareholders fell to $283 million from $4.5 billion a year earlier. The company declared a full-year dividend of $0.96 per share, down from $1.98.

Net debt swelled to $10.6 billion from $6.9 billion, slightly below the $10.93 billion expected by analysts.

Anglo, which also produces copper, platinum group metals (PGMs), iron ore and steelmaking coal, is not new to asset overhauls when commodity markets hit rock bottom. A decade ago, when its shares dived 75% on investor concerns over spiralling debt, the miner was poised to sell assets and cut jobs until the plans were abandoned thanks to a recovery in metal prices.

Both its South African unit Kumba Iron Ore (KIOJ.J) , opens new tab and Anglo American Platinum (AMSJ.J) , opens new tab this week announced plans to cut more than 4,000 jobs and review agreements with 780 contractors.

"In terms of cycle timing, the two assets that are dragging the portfolio today are the PGMs and diamonds businesses," Wanblad said, adding that more action will be taken if platinum prices continue to decline.

Sales of rough diamonds at the company's De Beers unit fell in 2023 as an economic slowdown curbed appetite for luxury items in major consumers China and the United States.

"To make any short-term decisions, you have to be absolutely certain that there had been a structural change in either of those markets or those businesses for us to want to do something very drastic with them," Wanblad added.

Anglo had already announced $1.8 billion of spending cuts by 2026 after logging a $1.7 billion writedown on its project to produce fertiliser nutrients in Britain. The company is in talks with potential partners over options including the sale of a stake in the project.

"The company-specific turnaround story, which could include changes to the portfolio or bringing in a partner for Woodsmith, is compelling," Jefferies analysts wrote in a note.

https://www.reuters.com/markets/commodities/anglo-american-full-year-profit-plunges-by-94-2024-02-22/