ii view: Anglo American details mixed quarterly output
Progressing a merger with Canadian miner Teck Resources and focused on producing items essential to decarbonise the world, improve living standards and food security.
5th February 2026 15:39
by Keith Bowman from interactive investor
Fourth-quarter production update to 31 December
- Copper production down 14% from a year ago to 169.5 kilo tonnes (kt)
- Iron ore output up 6% to 15.1 million tonnes (mt)
Chief executive Duncan Wanblad said:
"2025 has been a year of significant transformation and a defining moment in Anglo American's long history. We were delighted to receive Investment Canada Act approval in December for our merger with Teck, following overwhelming support from both companies' shareholders - a major milestone in our journey towards becoming Anglo Teck.
“We continue to secure key regulatory approvals for the transaction and we are advancing our integration plans, ensuring that once the transaction closes, we are ready to begin delivering the exceptional value that we have identified as a major global critical minerals champion."
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ii round-up:
Anglo American (LSE:AAL) today detailed mixed fourth-quarter 2025 production with the diversified miner, which is currently progressing a merger with Canada’s Teck Resources Ltd Class B (Sub Voting) (NYSE:TECK), offering broadly optimistic output estimates for 2027 and 2028.
Q4 copper production to late December was 14% lower than a year ago at 169.5 kilo tonnes (kt). Iron ore output rose 6% to 15.1 million tonnes (mt). Analysts had expected outcomes of 180 kt and 14.5 mt respectively.
Shares in the FTSE 100 company fell 3% in UK trading having come into this latest news up by close to a third in 2025. That’s similar to fellow diversified miner Rio Tinto Ordinary Shares (LSE:RIO) but way below a 400% plus gain for precious metals miner Fresnillo. The FTSE 100 rose 21.5%, copper climbed 42% and coal fell 14%.
Anglo extracts commodities including copper, iron ore, coal, manganese ore and polyhalite used in fertilisers, across locations ranging from Brazil, South Africa, Chile, Botswana to Australia.
Copper production for 2025 of 695 kt, down 10% year on year, is forecast to rise by up to 760 kt in 2026, 810 kt in 2027 and 860 kt in 2028.
Iron ore output of 61 mt in 2025, and flat versus 2024, is expected to fall marginally in 2026 and then grow to 63 mt in 2027 and 62 mt in 2028.
Having previously fended off a takeover attempt from BHP, Anglo has been simplifying its commodity portfolio, with processes to remove steelmaking coal, nickel and diamonds via the separation of De Beers all continuing.
Anglo flagged that in December it had received Canadian approval for its merger with diversified miner Teck Resources. Anglo’s full-year results are scheduled for 20 February.
ii view:
Started in 1917, Anglo American today employs over 55,000 people. Anglo’s broad strategic push remains focused on becoming a responsible producer of copper, premium iron ore and crop nutrients, items essential to decarbonise the global economy and improve both living standards and food security. Anglo’s progressing merger comes as rivals Rio Tinto and Glencore (LSE:GLEN) have just announced they've abandoned their own attempt at a tie up.
For investors, the current push to transform and enhance shareholder value will reduce the diversity of commodities provided. A forecast price/earnings (PE) ratio above the three-year average may suggest the shares are not obviously cheap. Factors outside of management’s control such as the weather can hinder production, while Anglo’s prospective dividend yield of under 1% is less than rivals Rio and BHP at 3% or more.
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On the upside, the agreed merger with Teck to form AngloTeck is expected to generate an average annual uplift in adjusted profits (EBITDA) of over $1 billion. Geographical diversity in terms of customer sales warrants consideration. A focus on improving efficiency resulted in the reduction of $1.3 billion of costs in 2024, while exposure to fertiliser ingredient potash exposes the company to the food security and population growth trends.
In all, a sizeable re-rating of the miner’s valuation over the last year may now leave Anglo shares up with events. That said, continued exposure to copper and iron ore, used widely by global industry, and the ongoing merger with Teck, will likely keep the shares on investor radars.
Positives:
- Emphasis on shareholder value
- Focus on costs
Negatives:
- Uncertain economic outlook
- Subject to currency movements
The average rating of stock market analysts:
Buy
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