Anglo American Shares Soar as Copper Costs Plummet

Anglo American PLC (LSE:AAL) shares rose sharply after the company cut its cost forecasts for its copper business. The unit cost guidance for copper was reduced to about 145 cents from around 172 cents previously, driven by lower costs in Chile and Peru.

The savings come from higher credits for by-products like molybdenum, which are sold alongside copper and offset production costs, as well as favourable currency movements. The company's copper prices were 608 cents a pound in the first half, up 39% from last year and above the London Metal Exchange average of 593 cents.

Anglo American is repositioning itself as a copper pure play, with investors focused on the margin the enlarged group can generate. The company's chief executive Duncan Wanblad said the Teck merger remains on track for completion between September 2026 and March 2027, pending Chinese antitrust clearance.