Anglo American gets a nod from Barron's

Barron's wrote a bullish piece on miner Anglo American (OTCQX:NGLOY) this weekend, saying the company could either overcome operating issues or find itself acquired by a larger rival.

"Operational problems and tough conditions in several key markets, including diamonds - where the company’s De Beers unit lost money in 2023 - and a disappointing multiyear production outlook late last year have rattled investors and depressed the shares," Barron's said.

But metals prices are improving, the company is looking to cut costs and could entertain "a sale of the $30 billion company, which would be easily digestible by one of its competitors. Most paths point to a rebound for Anglo stock."

Operational changes could have Anglo American stock playing catch-up with rivals like BHP Group (BHP), Glencore (OTCPK:GLCNF) and Rio Tinto (RIO).

"These days, copper is Anglo American’s best business, and most of its mining operations are located outside the country," Barron's said. "It has a new, low-cost Peruvian mine and another two in Chile. Its production is around 1.2 billion pounds annually, about a third of industry leader Freeport-McMoRan (FCX) with low cash production costs of about $1.50 a pound."

"Copper also has the best long-term outlook among metals, due to limited new supply and increased demand from green energy."