Anglo American PLC

British stocks closed higher on Tuesday, with the FTSE 100 index ending at 10,886.16 points, up 31.84 points or 0.29%, supported by the UK government's announcement of a 10 billion pound ($13.6 billion) plan to build affordable housing for renters, particularly in London. About 60% of the homes built with government funds will be social housing, which lifted homebuilder stocks by 2.5%. Vistry shares surged 16.3% after receiving an initial 350 million pounds ($477.19 million) to build more than 3,000 affordable homes. Meanwhile, mining stocks such as Glencore and Anglo American rose about 2% on higher copper prices, and Melrose Industries jumped 10.4% after setting a target to resume full production at its Garden Grove plant on September 28. Next shares gained 2.4% after Citigroup upgraded its recommendation to "buy." However, BP and Shell shares slipped slightly as oil prices fell more than 3%. Investors are watching Nvidia's earnings on Wednesday and comments from Federal Reserve Chair Kevin Warsh at the Jackson Hole meeting on Friday.

Anglo American has reached a year-long iron ore supply agreement with China Mineral Resources Group, the country's state buyer, according to Bloomberg. The deal, struck by Anglo's Kumba Iron Ore unit in South Africa, covers supply to Chinese mills from April 1 this year until March 31, 2027, but excludes ore from the Minas-Rio project in Brazil, which is not sold to China on a long-term contract basis. Kumba confirmed on an earnings call last month that it had reached an agreement with CMRG without providing details on length or terms; its premium higher-iron-content ore saw about 37 million tons sold in 2025. In April, CMRG reached a supply agreement with BHP that ended a months-long dispute.

Teck Resources and Anglo American have announced the future Executive Leadership Team of Anglo Teck, the combined company to be formed through their merger. Duncan Wanblad will serve as CEO, Jonathan Price as Deputy CEO and Chief Strategy Officer, and John Heasley as CFO, with the full ELT taking effect upon merger completion, expected between September 2026 and March 2027. The regional leadership team, reporting to COO Ruben Fernandes, includes CEOs for Canada and the U.S., Peru, Brazil, Chile, and Kumba Iron Ore. Anglo Teck will be headquartered in Vancouver and is projected to deliver annual pre-tax synergies of approximately US$800 million by the fourth year post-completion, with additional revenue synergies from optimizing the Collahuasi and Quebrada Blanca copper mines in Chile.

Anglo American reported a narrower first-half loss of $858 million, down from $1.88 billion a year earlier, as revenue from continuing operations rose 11 percent to $9.93 billion. Underlying EBITDA for continuing operations increased 35 percent to $4.00 billion, driven by higher production at De Beers and Manganese. The board approved an interim dividend of $0.23 per share, up from $0.07 last year. The company maintained its fiscal 2026 production guidance, targeting copper output of 700 to 760 thousand tons, premium iron ore of 55 to 59 million tons, and diamonds of 21 to 26 million carats.

European stocks closed mostly higher on Thursday, with the pan-European Stoxx 600 climbing 0.78%, as investors looked past U.S.-Iran tensions and focused on corporate earnings and economic data. Germany's DAX and France's CAC 40 rose 0.89% and 0.9% respectively, while the UK's FTSE 100 slipped 0.16%. Mining and financial shares led gains, with Anglo American, Antofagasta, and Glencore up 4.1% to 6%, and Standard Chartered climbing 3.4%. AstraZeneca fell more than 6% after its nerve disease drug Wainua failed a late-stage trial. Germany's trade surplus widened to €19.1 billion in May, the largest since February, as exports unexpectedly rose 0.9% and imports dropped 2.5%.

Chile's state-owned copper miner Codelco is struggling under $25 billion of debt and its lowest production in 28 years, prompting debate over whether it should shelve growth ambitions and give a larger role to private capital. The company is contending with a fatal accident at its El Teniente mine that killed six workers, as well as probes into inflated production figures that overstated 2025 output by nearly 27,000 metric tons. New Chairman Bernardo Fontaine, appointed by President José Antonio Kast, has launched a strategic review aimed at restoring profitability and reducing debt, vowing to "put the house in order." The crisis comes as BloombergNEF warns of an unprecedented global copper shortfall of 7 million tons by 2035, driven by surging demand from AI, data centers, and the energy transition. Codelco's production costs are more than 50% above the average of the three largest global copper miners, and its output has fallen to about 1.3 million metric tons, well below the pre-pandemic target of 1.7 million.

Teck Resources has mailed a letter of transmittal and election form to registered holders of its Class A common shares and Class B subordinate voting shares in connection with the court-approved plan of arrangement for its merger of equals with Anglo American. Under the merger, each Teck share will be exchanged for 1.3301 ordinary shares of Anglo American, or for eligible Canadian shareholders who so elect, exchangeable shares of Anglo Teck Exchangeco Limited. The election window is now open, and registered shareholders are strongly encouraged to submit their completed letters of transmittal promptly, as the election deadline has not yet been determined and will be announced with at least seven business days' notice. Shareholders who fail to deposit a properly completed letter of transmittal by the third anniversary of the merger closing will forfeit their right to the consideration. The letter of transmittal is for registered shareholders only; beneficial holders should contact their intermediaries for instructions.

Anglo American has agreed to sell its Australian steelmaking coal assets for up to $3.88 billion, a move to simplify its portfolio and reduce debt before its planned combination with Teck Resources. The sale keeps investor attention on Anglo American's portfolio reset ahead of the merger, which would create a top-five global copper producer. The combined Anglo Teck is expected to offer investors more than 70% exposure to copper, giving Teck a cleaner link to electrification, grid expansion, and AI-related power demand.