On Friday, Anglo American plc (OTCQX:AAUKF) posted a $3.7 billion loss after booking a $2.3 billion writedown on its De Beers diamonds business. The crisis of the global diamond industry arrived at a volatile period for the firm, as it restructured and negotiated a merger of equals with Teck Resources Ltd. (NYSE:TECK).

The latest impairment at De Beers brought total writedowns to $6.8 billion over the past year. Despite 2% higher earnings from operations, the non-cash charge pushed the group into the red and forced a reset of shareholder returns.

Anglo declared a dividend of 23 cents per share, roughly $200 million, down 64% from 64 cents per share, or about $800 million, a year earlier. The cut reflects both weaker diamond prices and management's desire to preserve balance sheet strength as it reshapes the portfolio. Net debt fell to $8.6 billion, but the dividend reduction highlights how severely De Beers has weighed on group performance.

Losing Luster

Anglo has struggled with ...