Anglo American Shares Gain on Australian Coal Disposal for $1.1B

Shares of the UK-based Anglo American PLC (GB:AAL) gained 1.3% as of writing after the company announced the disposal of its stake in Australian coal mines for $1.1 billion (AU$1.6 billion). According to the company’s statement, it is selling a 33.3% stake in Jellinbah Group to Zashvin Pty Limited. Jellinbah is a joint venture that holds a 70% interest in the Jellinbah East and Lake Vermont steelmaking coal mines located in Australia. Meanwhile, Zashvin currently holds a 33.3% stake in Jellinbah, along with Anglo American and Marubeni.

Anglo American is a mining company that specializes in platinum. The company’s product range also includes diamonds, copper, and iron ore.

Anglo American Offloads More Coal

The latest divestiture is part of Anglo American’s portfolio restructuring strategy, which was defined in May to counter the takeover attempt by its Australian competitor BHP Group Limited (AU:BHP). As part of this strategy, Anglo intends to divest its coal, nickel, diamond, and platinum operations, while retaining its copper and iron ore assets, along with its crop nutrient initiative.

The company stated that it is on track to simplify its operations, focusing on future-enabling products. Anglo believes that this cash-generative, high-margin portfolio will enhance resilience during market fluctuations and create substantial growth opportunities. Additionally, it will help boost annual copper production to over one million tonnes by the early 2030s.

The transaction is expected to be finalized in the second quarter of 2025, depending upon regulatory approvals.

Is Anglo American a Good Stock to Buy?

According to TipRanks’ consensus, AAL stock has been assigned a Moderate Buy rating, backed by five Buys, four Holds, and one Sell recommendation. The Anglo American share price target is 2,489.19p, which is 2.6% above the current trading price.

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