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Anglo American and Glencore are top picks for Citi ahead of production updates from mining majors

Citigroup sees no significant change to full-year guidance from the largest mining companies

Anglo American PLC -

Anglo American PLC (LON:AAL) and Glencore PLC (LON:GLEN) are the top picks for Citi ahead of a plethora of second-quarter production figures from the mining majors.

“Our estimates imply aggregate iron ore volumes could increase by 8% q/q, partially helped by seasonally softer volumes in Q1,” said the investment bank in a production preview on the sector.

“Copper volumes are expected to be flat q/q and point to stable operational performance across companies. We expect a slight increase in coal volumes, but remaining below pre-pandemic levels.

“Overall, our expectation of broadly stable operations implies no significant change to the full-year guidance.

“A rally in commodity prices is likely trigger solid cash flows, which could be a key catalyst for corporate management to look at cash returns at interim financial results,” Citi analysts said.

Earlier this week, analysts at UBS said they expect BHP PLC (LON:BHP), Rio Tinto PLC (LON:RIO), Fortescue Metals Group Ltd (ASX:FMG), Anglo American and Glencore to announce the return of about US$26bn to shareholders alongside their June-2021 results.

READ: BHP and Anglo American expected to positively surprise with dividend payouts, says UBS

Quick facts: Anglo American PLC

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Price: 2591 GBX

Market Cap: £35.2 billion

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