Shares in Anglo American PLC (LSE:AAL) rose 5% to 3,703p after the FTSE 100 miner slashed its cost forecasts for its copper business, the division that will define the group after its merger with Canada's Teck Resources.
Unit cost guidance for copper, the cash cost of producing a pound of metal, was cut to about 145 cents from roughly 172 cents previously.
That reflects a reduction in Chilean costs to about 210 cents a pound from 230 cents, and a much steeper cut in Peru to about 65 cents from 100 cents.
The savings come from higher credits for by-products such as molybdenum, which are sold alongside copper and offset production costs, and from favourable currency movements.
Cost discipline matters more than volumes here, because Anglo is repositioning itself as a copper pure play and investors are focused on the margin the enlarged group can generate.
Realised copper prices in the first half were 608 cents a pound, 39% higher than a year earlier and above the average London Metal Exchange price of 593 cents.
Production itself was unremarkable, with copper output flat at 173,200 tonnes as higher throughput at Los Bronces offset lower ore grades at Collahuasi and Quellaveco.
Premium iron ore output fell 3% to 15.4 million tonnes after planned maintenance at Kumba and weaker grades at Minas-Rio.
Full-year production guidance was left unchanged across every division.
Chief executive Duncan Wanblad said the Teck merger remained on track for completion between September 2026 and March 2027, with Chinese antitrust clearance the last outstanding regulatory hurdle.
He also flagged inflationary pressure on fuel and mining consumables stemming from the conflict in the Middle East.
The businesses being sold offered less encouragement, with underlying earnings from De Beers and steelmaking coal expected to be negative in the first half.
Rough diamond prices fell 32% to $105 a carat as lab-grown stones continued to erode demand for cheaper natural gems.
