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,’ chief executive officer (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.
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