This is an updated version of the report published on 05 December 2025 at 10:46 AM GMT

Anglo American PLC (LSE: AAL) 

Anglo American PLC (LSE: AAL) a FTSE 250 constituent, is a global mining company. Its core portfolio is centered on copper, premium iron ore, and crop nutrients, with major copper operations including Collahuasi, Los Bronces, El Soldado, and the Quellaveco mine in Peru. This Report covers the Key Recommendation Rationale, Conclusion, and Recommendation on the stock.

Key Recommendation Rationale – Sell at GBX 3,051.00

• Resistance near Current levels: AAL’s stock price has breached Resistance (R1) which was stated in the previous report on 19 November 2025 therefore, there can be a possibility of a decline from resistance levels. Considering the market conditions and the price action, it is prudent to exit the stock.
• Continued Operational Weakness in Exiting Businesses - Despite improvements in core commodities, performance across the assets earmarked for exit remains materially weak. Steelmaking coal production collapsed by more than half, primarily due to the Moranbah North incident and the loss of Jellinbah volumes, significantly reducing overall output and revenue contribution. Diamond trading conditions also remain fragile, with price indices down double-digits and sales still heavily influenced by market rebalancing measures. This persistent underperformance creates uncertainty around valuation and timing of planned divestments.
• Structural Challenges Impacting Copper Growth Trajectory - Although group copper production increased marginally in Q3, the sharp 27% decline at Collahuasi underscores structural issues—lower grades, oxidation in stockpiles affecting recoveries, and ongoing water-availability constraints. These factors are expected to continue into 2026, dampening near-term output and pushing meaningful recovery into 2027. This creates a multi-year headwind for achieving consistent copper growth at a time when the company is positioning itself as a future “critical minerals champion.”..

Valuation Methodology: Price/ Earnings Approach

Share Price Chart  

AAL Daily Technical Chart, Source - Refinitiv 

Conclusion

AAL is expected to trade at a discount, considering Continued Operational Weakness in Exiting Businesses and fears of global slowdown. For conducting the valuation, the following peers have been considered - Rio Tinto PLC (LSE: RIO), Glencore PLC (LSE: GLEN) and others.

Given its current trading levels, Structural Challenges Impacting Copper Growth Trajectory, recent rally in the share price, relative valuation, and associated risks, it is prudent to exit the stock at the current levels. Hence, a ‘Sell’ recommendation is given on the stock at the Current Market Price of GBX 3,051.00 as of 05 December 2025 at 08:25 AM GMT.

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is 05 December 2025. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: Target Price refers to a price level which the stock is expected to reach as per the relative valuation method and/or technical analysis taking into consideration both short-term and long-term scenario.

Note 5: ‘Kalkine reports are prepared based on the stock prices captured either from the London Stock Exchange (LSE) and/or REFINITIV. Typically, both sources (LSE and or REFINITIV) may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.’

Note 6: Dividend Yield may vary as per the stock price movement.