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Anglo-American: a FTSE 100 stock on the rise

ESG concept of environmental, social and governance.
Image source: Getty Images

London-based mining company Anglo-American (LSE:AAL) has had a strong start to the year, with its shares up nearly 10%. The FTSE 100 stock has benefited from the increasing demand for commodities, particularly copper and iron ore, as well as a rebound in commodity prices.

But Anglo-American’s success story is not just a one-hit wonder, it’s a symphony of stability and growth. With roots dating back to 1917, it has been in the mining game longer than most of us have been alive. Anglo-American is like the grandfather of mining companies, wise and experienced, with a long history of successfully navigating the industry.

Today, Anglo-American is one of the largest mining companies in the world, with operations spanning over 20 countries.

Sustainability

One of Anglo-American’s key growth drivers has been its focus on sustainability. The company has set ambitious goals to reduce its greenhouse gas emissions, water usage, and waste, and has made significant progress towards meeting these targets. In 2020, Anglo-American reduced its greenhouse gas emissions by over 10% from the previous year and has set a goal to become carbon neutral by 2040.

In addition to its sustainability efforts, Anglo-American has also made strategic investments to expand its operations. In 2019, the company acquired a majority stake in lithium producer Nemaska Lithium for $1.1bn, positioning it to benefit from the growing demand for electric vehicles. Anglo-American has also made several smaller acquisitions in the past year, including the purchase of a 50% stake in an iron ore project in Brazil and a 50% stake in an Arizona copper project.

However, despite these efforts and acquisitions, some analysts have expressed concern over Anglo-American’s heavy reliance on the mining industry. With the global push towards decarbonisation and the potential for a decline in demand for fossil fuels, Anglo-American’s future growth may be at risk. Additionally, the company has faced criticism for its track record on environmental and social responsibility in the past, which could also impact its reputation and bottom line in the long term

Growth

Anglo-American’s focus on sustainability and growth has made it a top performer on the London Stock Exchange. With its diverse operations and strategic investments, the company is well-positioned for continued success in the future.

Its performance on the London Stock Exchange is a testament to the effectiveness of its strategy, and it’s no wonder it is considered a top player in the mining industry.

In short, Anglo-American is a mining powerhouse that’s been digging up profits for over a century. It is not just in it for the gold, though. It is also committed to being environmentally friendly and socially responsible.

Plus, it is not afraid to flex its financial muscles and make strategic acquisitions to keep its mining empire expanding. It’s like it is playing a game of Monopoly, but instead of hotels on Mayfair, it is buying up mines in Brazil and Arizona.

All in all, with its top performance on the London Stock Exchange, Anglo-American is a company that’s not just striking gold, but striking a chord with investors and the environment alike.

Currently, I am in a financial situation where investing in Anglo-American shares is not currently feasible. But, like a squirrel saving acorns for winter, I am diligently putting aside funds for the day when I can finally add this stock to my portfolio.

The post Anglo-American: a FTSE 100 stock on the rise appeared first on The Motley Fool UK.

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Khadijah Jay does not have any position in any company mentioned in the article. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

Motley Fool UK 2023