Berenberg Trims Target Price for Anglo American to 5,100p

Financial analysts at Berenberg have revised their target price for Anglo American's stock from 5,200p to 5,100p following the mining company's second-quarter production report. The updated modelling took into account changes in Peruvian royalty rates and stronger-than-expected copper output.

Copper production of 173,000 tonnes exceeded Berenberg's forecast of 164,000 tonnes due to higher volumes in Chile and Peru, while iron ore output was slightly lower than estimated at 15.4m tonnes. Diamond production, however, beat expectations with 7.8m carats against a predicted 5.8m carats.

Anglo American maintained its operational guidance but reduced its blended copper cost forecast to $1.45 per pound from $1.72, driven by higher by-product credits. Realised prices were lower across bulk commodities, while copper outperformed with a price of $6.08 per pound.