Anglo American (LSE:AAL) remains rated as a 'Buy', with a 3800p price target, as Deutsche Bank analyst Liam Fitzpatrick highlighting that the FTSE-listed diversified miner delivered a solid start to the year.
In particular, the analyst pointed to the miner's core copper and iron businesses (the "RemainCo" divisions) running about 5% ahead of consensus as stronger output at Quellaveco and Los Bronces more than offset lower grades at Collahuasi, supporting unchanged FY26 production and unit-cost guidance for continuing businesses.
DB flags that unit-cost guidance is likely to be reviewed at mid-year because of diesel and other input-cost inflation, that Moranbah North has resumed normal operations, and that the sale of the coking-coal business is expected to be agreed later this quarter while the De Beers sales process remains vague.
The broker's note added that it expects Anglo to announce an exit from De Beers later this year, a corporate shape shift the analyst sees as a key mid-term value catalyst.
