Anglo American Target Price Cut by Berenberg Analysts

Analysts at Berenberg have trimmed their target price for Anglo American to 5,100p from 5,200p after the miner's second-quarter production report and adjustments linked to Peruvian royalty changes at Quellaveco. The bank cited updated modelling as the reason for the reduction.

Berenberg noted that Anglo American's Q2 copper output of 173,000 tonnes beat its forecast of 164,000 tonnes due to stronger volumes in Chile and Peru. However, iron ore production of 15.4m tonnes was slightly light compared to its estimate of 15.7m tonnes due to weaker output at Kumba.

Anglo American maintained its operational guidance but cut its blended copper cost guidance to $1.45 per pound from $1.72, helped by higher by-product credits. The company's realised prices were softer across bulks, while copper outperformed at $6.08 per pound versus Berenberg's estimate of $5.91.