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Anglo American faces earnings miss despite lower copper costs
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Anglo American faces earnings miss despite lower copper costs Proactive uses images sourced from ShutterstockAnglo American PLC's (LSE:AAL) interim results next Thursday are expected to show stronger copper profitability offset by weaker iron ore pricing and losses from businesses being prepared for sale.
The miner's second-quarter production update this week was broadly reassuring, with copper and iron ore output around 1% ahead of expectations, according to Deutsche Bank.
UBS, which retained a 'buy' rating and 4,600p price target, warned that first-half EBITDA could undershoot the $3.9 billion consensus.
Production of 173,000 tonnes met expectations, while output guidance remained at 700,000-760,000 tonnes.
UBS expects lower copper costs to be offset by weaker realised iron ore prices, reflecting higher freight charges and the redirection of cargoes from Bahrain to China.