A rally in Anglo American Plc pushed its stock above 10 pounds for the first time in more than a year after a rebound in commodity prices and cuts in its debt brought the century-old mining company back from the brink.
Anglo gained as much as 3.4 percent to 1,029 pence a share, the highest since June 2015. The stock has more than tripled this year, the best performer in the U.K.’s benchmark FTSE 100 Index.
The stock hit a record-low 215.55 pence in January. Since then, the company has unveiled a turnaround plan that would see it sell half its mines, and exit coal and iron ore to focus on more profitable diamond, platinum and copper operations. The producer has reduced its debt to $10.3 billion, putting it within touching distance of its goal to cut borrowings below $10 billion by the end of the year.
“Further asset sales and meaningful consensus mark-to-market upgrades should support the share price in the near term,” Barclays Plc said in a note to investors Tuesday.
Last week, Anglo got $1.7 billion from the completion of the sale of its niobium and phosphate unit. On Thursday, Moody’s Investors Service raised Anglo’s credit rating on its debt reductions and as commodity prices rebounded. Coking-coal prices have doubled this year while thermal coal and iron ore have also rallied.
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