Anglo American share price edges higher after getting licence to boost capacity at Minas-Rio mine
The British multinational mining company saw its shares edge higher after it received its final operating licence, allowing it to increase production at its Minas-Rio mine in Brazil.
Anglo American saw its share price tick up on Monday after announcing that it has received the final operating licence required to boost production capacity at its Minas-Rio iron ore mine in Brazil.
After obtaining the operating licence, Anglo American will be able to produce 26.5 million tonnes per annum from the mining site.
‘This is an important milestone for our Minas-Rio iron ore operation in Brazil towards reaching its full potential,’ CEO of Bulk Commodities at Anglo American Seamus French said.
‘Minas-Rio has a long asset life of 48 years and produces a high grade, premium quality product for our customers, supporting lower emissions in the steel industry,’ he added.
Anglo American is trading at £21.46 a share as of 12:45 GMT on Monday.
Analysts mixed about Anglo American price trajectory
The median price target Anglo American in December sits at £22.65, with a low estimate of £18.00 and a high estimate of £25.50.
Based on the stock trading at £21.46 a share, analysts believe that stock has a potential downside of 16.1% or could rally by as much as 18.8%. However, the median price target implies a more modest upside for the stock of 5.5%.
Mining industry under fire over environmental and social impact
Anglo American and other members of the mining industry are being scrutinised by investors over the environmental and social impact of resource extraction.
However, in a recent press release the Institutional Investors Group on Climate Change (IIGCC) welcomed Anglo American’s commitment to aligning its policies with the goals of the Paris Agreement which aims to combat global warming.
‘It’s important investors see Anglo American follow through by meaningfully putting its commitment into practice,’ IIGCC CEO Stephanie Pfeifer said.
‘In the face of the climate crisis, this must become standard practice for global companies across all sectors of the economy,’ she added.
IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.
The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.
Please see important Research Disclaimer.
Seize a share opportunity today
Go long or short on thousands of international stocks.
- Increase your market exposure with leverage
- Get spreads from just 0.1% on major global shares
- Trade CFDs straight into order books with direct market access
Live prices on most popular markets
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.