Ticker

Diversified mining groups are shifting their capital allocation strategies toward copper expansion to secure higher market valuations, according to a research report from investment bank UBS. Analyst Daniel Major noted that major miners navigated their first-half financial results without severe guidance downgrades despite persistent cost inflation.

Mining bosses say that regulatory scrutiny of major mergers is increasing as governments pay closer attention to critical minerals and security of supply ​in the face of a volatile geopolitical backdrop, but they do not see the shift as a fundamental barrier ‌to dealmaking.

Anglo American LON: AAL reported higher first-half profit and cash generation as stronger copper prices, by-product credits and cost control supported its simplified portfolio, while the company continued work on asset sales and its planned merger with Teck.

The U.K. mining group—which is in the process of merging with Canada's Teck Resources—reported a narrowed net loss due to smaller write-downs on assets it is selling.

Copper and iron ore production remained resilient, guidance was reaffirmed, and copper unit cost guidance was cut by around 15%, strengthening the earnings outlook. The Teck merger remains on track, the Australian met coal disposal has been agreed for $3.875 billion, and the Codelco partnership at Los Bronces could unlock additional low-cost copper production. De Beers remains the main weak spot. Using conservative…