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Anglo American Shares Fell 3.91% As Analysts Remain Bullish on Its Q2 Production

Updated: 8 Jul 2021

Shares of Anglo American plc (LON: AAL) fell 3.91% as analysts at global investment banks Citigroup and UBS remain extremely bullish regarding its Q2 production output ahead of its Q2 earnings results.

The multinational mining company is set to report its Q2 interim results on 20 July 2020. Analysts at UBS expect the mining conglomerate to return billions of dollars to shareholders in an unchanged dividend policy.

Conversely, analysts at Citigroup expect Anglo American to report higher iron ore shipments during Q2, while its cooper shipments are expected to remain largely the same.

Citigroup’s analysts issued a review of the mining sector, saying: “Our estimates imply aggregate iron ore volumes could increase by 8% q/q, partially helped by seasonally softer volumes in Q1. Copper volumes are expected to be flat q/q and point to stable operational performance across companies. We expect a slight increase in coal volumes but remaining below pre-pandemic levels.”

Adding:

“Overall, our expectation of broadly stable operations implies no significant change to the full-year guidance.

However, it appears that the markets do not agree with the analysts’ assessment because the miner’s shares have been falling since mid-May. Investors seem to be waiting for the actual figures before jumping in to push Anglo American’s share price higher.

Anglo American shares have bounced off a crucial support level from a technical perspective and could be headed higher over the next few weeks if the level holds.

*This is not investment advice.

Anglo American share price.

IG chart of Anglo American share price 08-07-2021

Anglo American shares fell 3.91% to trade at 2880.3p, dropping from Wednesday’s closing price of 2997.5p.

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