Investors should never take unnecessary risks in the stock market. But with the way things are right now, they don’t really need to.

What happens next?

At the moment, it’s extremely hard to know what share prices will be doing even a few days from now. A lot depends on the conflict in Iran. 

By the time anyone’s managed to record and edit a podcast about what’s going on, it’s changed. And that’s true for those of us who write about stocks too.

Trying to figure out what’s going to happen next is probably a waste of time. But what investors can do is be prepared for different outcomes.

According to Warren Buffett, what creates opportunities is other people doing dumb things (his words). And that happens a lot at times like this.

The stock market is prone to overreacting to the latest news, which can create challenges. But it’s a very good thing for those who want to buy stocks.

What to look for

In some cases, it can be hard to know what the long-term effects of a situation will be. A good example is anti-obesity (GLP-1) drugs. 

Usage of these has been growing rapidly. And they’re an obvious threat to a number of food companies.

Assessing that threat accurately, though, is hard. The obvious issue stunting GLP-1 drugs’ potential is that they’re expensive, which limits their availability.

That might change over time, but it’s far from guaranteed. So that makes their long-term impact difficult to assess for investors. 

The conflict in Iran, however, looks much clearer. The US has stated it has no interest in a long war, but the market seems to be ignoring this.

Opportunities

The list of stocks that have fallen in the last month is long. But one that stands out is Anglo American (LSE:AAL), which is down 19%. 

The firm recently sold off its platinum, coal, and diamond assets to focus on what it sees as long-term opportunities. And this includes copper.

Things were looking good until recently. But the conflict in Iran has created rising energy costs, recession fears, and sulphuric acid shortages.

By contrast, things are much more positive from a long-term perspective. Demand is strong from data centres, electrification, and other major trends.

On top of this, it takes years to open a new copper mine. So unless the war goes on a lot longer than expected, supply should be limited for some time.

Long-term investing

Shares in Anglo American look really interesting to me right now. If the conflict in Iran is brief, it looks as though copper prices should rise.

In that situation, copper miners should do well. And the most attractive companies are ones with the lowest production costs. 

Anglo American fits this description. Its assets in Peru are relatively cheap to run and it’s acquired a mine in Chile with even lower costs.

The share price is roughly where it was five years ago. But I think this could be the best time to consider buying in a very long time.

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What happened next? The Footsie proved them all wrong! The index kept rising, up another 10% in only a couple of months! Its 1 March total of 10,900 came within a stone’s throw of the big 11,000 mark. How did it get there so quickly? Can it keep going? And are we perhaps in for a FTSE 100 golden age?

New trends

Before I get into things, I will say that the recently erupted conflict in Iran has taken a dent to the FTSE 100’s recent gains. The tumult could undo all that good work, or it could simply be a temporary blip. Because of the uncertainty of these kind of geopolitical events, I’m going to leave discussion of it out. Anyway…

The great run of the last two years can be explained very simply: investors like the look of the FTSE 100 more. Its old economy stocks – sometimes disparagingly called dinosaur stocks – combined with large dividends is looking attractive in this brave new world of artificial intelligence.

One neologism to be aware of is HALO or ‘Heavy Assets Low Obsolescence’. These HALO stocks are, as the name suggests, unlikely to be consigned to the dustbin of history by AI and possess substantial valuable assets.

The FTSE 100 is strongly weighted with HALO stocks like banks and miners. Conversely, the few tech stocks that might go obsolete like Rightmove or RELX are the ones dragging down the index of late.

There is no guarantee either way that this trend will continue. But if the developments in AI continue apace, then I wouldn’t be surprised to see more FTSE 100 outperformance in the years to come.

Double-edged

One stock that fits the HALO criteria is Anglo-American (LSE: AAL). The mining giant is unlikely to have its lunch eaten by advances in artificial intelligence, and indeed new technologies and their demand for metals might spur the company forward in the years ahead.

Mining is a cyclical sector. Much of a firm’s success comes down to the ever-changing prices of its commodities. And many observers are predicting copper to be in demand over the next decade. Anglo-American books around half of its earnings from the metal. This has contributed to a share price that is up 60% in the last year.

This is a double-edged sword, however. Copper looks hot now, partly because of its role in green technologies like solar panels or electrical wiring. But who knows what the future holds? Lowering demand for copper would have the opposite effect.

The last word? No one can say whether this strong FTSE 100 runup is a brief episode or a sign of things to come. But the index is filled with these kinds of HALO stocks that aren’t going anywhere. I think Anglo-American is one that is worth considering.

The post How did the FTSE 100 near 11,000 so quickly? appeared first on The Motley Fool UK.

De Beers soured the figures a bit, with a $2.3bn writedown for the struggling diamond business. Synthetic stones are increasingly seen as good enough these days, it seems, as Anglo said “we are progressing the separation of De Beers.” It’s the third cut in the De Beers valuation in the past three years, and it contributed to an overall net loss of $3.7bn.

Other than that, it’s been a “transformational year,” we were told. CEO Duncan Wanblad said Anglo “set the course for the future of our company by agreeing to merge with Teck to form a global critical minerals champion — as Anglo Teck.”

Are Anglo American shares set for a bright future now?

Earnings steady, dividend cut

The overall results came in better than expected. Revenue from continuing operations rose 5% to $18.5bn. And underlying EBITDA improved slightly to $6.4bn. Last year’s attributable free cash outflow of $209m reversed direction. And this time we saw an inflow of $790m.

Net debt is down, by $2.1bn to $8.6bn. The company attributed that, in part, to lower capital expenditure and disposals. And we should see further progress as disposals continue.

We’re not back to a positive bottom-line yet, as the previous year’s loss per share of $2.53 widened to $3.30. But that’s a bit better than hoped. And forecasters expect a return to positive earnings per share in 2026.

Despite that loss, Anglo did still announce a dividend — though at $0.23 per share it’s down 64%. It’s a yield of just 0.47% on the previous day’s close. So there’s some way to go to get back to any kind of meaningful attraction for income seekers.

Back on track?

This really could mark the turnaround point that shareholders have been waiting for. So why only a cautious share price response after these results? Well, it seems the upbeat news had been well anticipated.

Anglo American shares had already climbed 50% in the past 12 months. And they’ve more than trebled in price over 10 years, on the back of soaring demand. Prices of metals, including iron and copper, are up — along with a whole range of other key commodities.

Fully valued now?

The stock’s recent rise doesn’t make it appear screamingly cheap now. Even forecasts out as far as 2027 indicate a price-to-earnings (P/E) ratio of 20. Dividends should be better by then — but with a yield expected of less than 2%, based on the current share price.

Forecast valuations, however, do only go out a couple of years. We typically need to look a fair way further ahead in what is a notoriously cyclical business — and I do think we could have further share price gains here. But I see more attractive valuations elsewhere in this sector, which investors might want to consider.

The post Is the only way up for Anglo American shares, after potentially pivotal results? appeared first on The Motley Fool UK.

Both Cash ISAs and Stocks and Shares ISAs allow savers and investors to build wealth. And after enough compounding, it’s possible to start earning a substantial second income.

So let’s say I want to earn an extra £500 each month without having to work for it. How much do I need to have in my ISA?

Please note that tax treatment depends on the individual circumstances of each client and may be subject to change in future. The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of tax advice. Readers are responsible for carrying out their own due diligence and for obtaining professional advice before making any investment decisions.

Saving vs investing

Some top-notch Cash ISAs currently offer around 4% interest on savings today. So if the goal’s £500 a month, or £6,000 a year, that would require a nest egg worth £150,000.

For a Stocks and Shares ISA, the amount needed might be roughly the same. That’s because it just so happens that UK dividend shares historically have yielded close to 4% on average as well.

So now the question becomes, how do I get the £150k needed to unlock this tax-free income stream?

This is where a Stocks and Shares ISA has a massive advantage. Even when investing in boring FTSE 100 large-cap companies, these have typically generated a total return closer to 8% a year – double that of Cash ISAs today. And with more interest rate cuts on the horizon, the returns of the stock market only become even more attractive.

Let’s say I’m starting from scratch today and I drip feed £500 a month into a Cash ISA. Assuming the interest rate doesn’t change, it will take around 18 years to reach the £150,000 target threshold. By comparison, for a Stocks and Shares ISA earning 8% a year, this timeline is slashed by roughly five years.

But investors can potentially do even better…

Aiming for bigger returns

Rather than relying on an index fund, stock picking allows investors to own only the best and brightest businesses. And investors who used this strategy to spot the opportunity with Anglo American (LSE:AAL) 10 years ago are laughing today.

The once-struggling diversified mining group has delivered staggering returns since 2016, following an operational turnaround supported by rising commodity prices, particularly for iron and copper. As such, investors who bought shares towards the beginning of the company’s turnaround have gone on to earn a 2,020% total return.

That’s the equivalent of a 35.7% annualised gain! And at this explosive rate, anyone who’s been investing £500 each month over the last decade is now sitting on a staggering £549,823 – enough to generate a passive income of £1,833 a month!

With copper demand still rising rapidly to support the electrification of global infrastructure, Anglo American continues to benefit from commodity-driven tailwinds. And with some non-core divestments being executed to raise capital, management’s also enjoying a lot more financial flexibility to execute its long-term strategy.

Of course, commodity prices don’t go up forever. And with other mining groups seeking to capitalise on rising copper prices, there’s a risk of market oversupply, which would drag prices down. Similarly, divestments come with execution risk that can disrupt cash flow if mishandled.

In short, unlike saving, investing comes with considerably more risk. But with the potential for outsized returns, these risks are sometimes worth taking. And for those seeking to get started today, Anglo American shares could be worth a closer look.

The post How much do I need in an ISA to earn a £500 monthly passive income? appeared first on The Motley Fool UK.

While the headlines focused on Cash ISA restrictions, the Budget also included measures that make tax-efficient investing through stocks increasingly attractive.

Notably, from April 2027, the annual Cash ISA allowance for those under 65 will be cut from £20,000 to £12,000. This hopefully encourages savers to allocate more of their ISA allowance into shares. The shift aims to promote increased investment in the UK stock market to help boost the economy.

It’s a smart move in my opinion, since stocks historically offer superior long-term growth compared to cash holdings — especially in an inflationary environment. Additional Budget measures included a 2% rise in income tax on savings outside ISAs and pensions. This includes dividend income, which provides further incentives for investors to shelter funds within ISAs.

Please note that tax treatment depends on the individual circumstances of each client and may be subject to change in future. The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of tax advice. Readers are responsible for carrying out their own due diligence and for obtaining professional advice before making any investment decisions.

How this affects UK investors

The market reacted relatively well on Wednesday, considering, with the FTSE 100 and FTSE 250 seeing mild gains. The news appeared to ease some borrowing concerns, although initial reactions to the UK housebuilder sector were mixed due to unchanged housing policies.

The ISA change means investors could benefit from shifting funds from a Cash ISA into stocks. Naturally, this comes with added risk so it’s important to pick stocks carefully.

Two sectors that are already showing promise post-Budget are finance and mining. Lloyds saw notable gains after the announcement, as the Chancellor chose not to impose windfall taxes on bank profits. Meanwhile, wealth manager St James’s Place gained 5% on the day, benefitting from its position in providing investment guidance to clients.

A compelling option?

Aside from financials, one stock I think could benefit from the economic uncertainty is the globally-diversified mining group Anglo-American (LSE: AAL). Its exposure to precious metals and other key commodities make its a top choice among investors looking for a hedge against stubborn inflation.

It has appeal as a dividend-paying stock with growth prospects rooted in global demand for metals. Moreover, its solid balance sheet and focus on sustainable mining practices strengthen its long-term investment case. As such, it’s worthy of consideration by ISA investors seeking stable dividend income and capital appreciation amid today’s uncertain UK economic landscape.

The group is currently involved in a major merger plan with Canada’s Teck Resources, valued at over $60bn. It’s a complex deal with incredible potential but it comes with significant challenges, including regulatory approvals and integration risk.

But overall, I believe the stock’s inflation hedge properties, reliable dividend policy and international diversification make it worth further research in a post-Budget environment.

Taking a cautious view

For ISA investors, focusing on dividend-paying stocks with strong fundamentals and tax-efficient positioning post-Budget is key. Bank stocks, insurers and wealth managers could all benefit from favourable taxes. Meanwhile commodity stocks may be beneficial as a hedge against inflation.

In the current investment landscape shaped by fiscal tightening and market volatility, a cautious approach using well-balanced diversification is key to risk reduction.The US is facing its own struggles. So British investors may find comfort in the FTSE 100’s broad selection of defensive shares.

The post What does the UK Autumn Budget mean for Stocks and Shares ISA investors? appeared first on The Motley Fool UK.

Transformation

The company in question is miner Anglo American (LSE: AAL). For years, it was criticised as a sprawling conglomerate struggling to define its identity.

It’s now in the middle of a multi-year transformation, refocusing on premium iron ore and copper. This year, it spun off its platinum group metals business into Valterra Platinum and announced the sale of its nickel operations.

The biggest strategic move, however, came with the announcement of a proposed mega-merger with Teck Resources. Touted as a “merger of equals” it undoubtedly sent shockwaves through the mining world and has the potential to put the company at the forefront of the copper boom.

Supply and demand mismatch

Copper isn’t just another industrial metal. It’s the wiring of the electrification megatrend. EVs, grid upgrades, energy storage, wind and solar projects – and the sprawling new data centres powering AI – all need it.

Yet demand keeps climbing while supply is lagging behind. Ore grades are declining and the low-hanging fruit has long been mined. Major new discoveries are rare, and miners are growing increasingly risk-averse.

It’s easy to see why supply is constrained. Mining is a tough business that struggles to attract talent. On top of that, strict government permitting and local opposition mean that turning a new discovery into a fully operational mine can take decades.

I’ve long argued the world is quietly walking into a structural copper deficit. The proposed merger isn’t just a big deal on paper – it’s a calculated bet to put the company on the winning side of that imbalance.

Diamonds

Copper may grab the headlines, but its De Beers operation remains a wildcard.

The market has been under pressure. Lab-grown diamonds are eating into sales, squeezing margins, and retailers are favouring cheaper alternatives.

Anglo remains committed to selling De Beers, but buyers with the right expertise and capital are few and far between. As long as the market stays weak, a sale looks unlikely.

That said, natural diamonds have something synthetic ones can’t replicate: uniqueness. That very quality captured public attention when Taylor Swift recently showed off her engagement ring, reminding investors that demand for the real thing can still flare unexpectedly.

Bottom Line

The story isn’t just about a comeback –  it’s about scale, strategy, and positioning. The Anglo-Teck merger will create one of the world’s top five copper producers. Existing shareholders will own 62.4% of the new combined company.

Six huge copper assets with a combined annual production of 1.2m tonnes, rising to 1.35m tonnes by 2027, will provide it with extraordinary scale.

Copper is set to dominate the company’s future earnings, underpinning a long-term growth story as global demand for electrification, renewables, and AI data centres surges.

I expect the road to remain bumpy.  But that is par for the course when it comes to investing in miners. For investors focused on the long-term, I think Anglo American shares are worth investigating further.

The post A 68% rally and growing – is this the FTSE 100’s most overlooked comeback story? appeared first on The Motley Fool UK.

AI arms race

Recently, the combined market cap of the Magnificent 7 stocks surpassed $20trn, and the top 10 stocks now account for 40% of the entire S&P 500. But I am becoming increasingly convinced that investors are wagering their chips on the wrong part of the board.

The advent of AI has sparked a technological arms race that bears no resemblance to any previous technological breakthrough. This includes the internet revolution.

The normal trajectory of a new innovation is that adoption starts slow and the eventual winners emerge over an extended period of time.

Today, however, corporations and even governments are in what can only be described as an AI arms race, in a way that has shades of the space race between the US and the Soviet Union.

Capital expenditure

Governments are weighed down with extraordinary levels of debt, so the prospecting for gold is being undertaken by the cash-rich AI hyperscalers, most noticeably Microsoft, Meta, and Alphabet.

However, the hundreds of billions of dollars that the industry is collectively spending each year is slowly weakening balance sheets.

Today, most of that upfront capital investment is going into building vast data centres. And this is where we arrive at the other side of the capital equation: that of raw materials. The perennial question, though, is do we have enough supply?

Copper

For me, the mining industry is set to be one of the major beneficiaries of this AI arms race. We are already seeing early signs that we are on the cusp of a renaissance in what I have long described as a forgotten industry.

China continues to accumulate metals with no thought about cost and the US administration recently passed an executive order re-classifying pretty much every metal out there, including copper, as a critical metal.

The mining industry is now responding. The proposed mega-merger between Anglo American (LSE: AAL) and Teck Resources will create a top-five copper producer.

The combined company will own or jointly own six huge copper mines, with an annual output of 1.35m tonnes. Peer Glencore (LSE: GLEN) is also ramping up copper production. By the end of the decade it is expecting to produce 1m tonnes a year, with a clear guide path to double output from there.

Supply deficit

Despite these investments, I remain convinced that a copper deficit is coming. The industry is just coming out of a decade-long bear market, one which has seen it starved of global capital.

Copper prices can be extremely volatile. This was all-too evident in April when tariffs were announced. Wild price swings can, ultimately, put pressure on mining margins and profitability. That remains one of the big risks investing in Anglo American and Glencore.

But, I still think investors are looking in the wrong place when it comes to the AI revolution. The tech companies are spending like drunken sailors. But I think it will be the mining industry that ultimately benefit from such a binge. That is why I recently bought shares in both mining giants.

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One is Anglo American (LSE:AAL), which recently announced a major structural change. The other is Compass Group (LSE:CPG), which I’ve had a positive view of for some time.

Anglo American

On Tuesday (9 September), Anglo American announced plans to merge with Canadian miner Teck Resources. The stock is up 12% this week and analysts at Berenberg have upgraded it as a result.

Not by much – the bank still sees the stock as a Hold, but that’s an improvement on its previous Sell rating. And the £23 price target is above the current share price.

The advantages of the move are clear. Anglo American has been looking to focus on its copper, iron ore, and crop nutrients divisions and exit platinum, diamonds, and coal.

When it comes to mining, the biggest advantage a company can have is lower production costs. Joining forces with Teck should help on this front. But there are risks.

So far, the firm’s moves have come at the wrong time. Its shift has come at a time when hybrid cars (which use a lot of platinum) are winning over electric vehicles (which are more copper-intensive).

The risk with focusing on copper is that the energy transition takes longer than anticipated. But lower costs can only be a good thing, so I have the stock on my watch list for the future.

Compass Group

Analysts at Deutsche Bank upgraded Compass Group to Buy on Thursday (11 September). And their £29 price target is 10% above the current share price. 

The bank’s previous Hold rating was based on recent weakness in the European travel and leisure market. But it also thinks companies with strong business models might still be attractive.

I agree with this – and Compass fits the bill. The contract caterer uses its scale to negotiate lower prices from suppliers and it uses this to provide value to customers that rivals can’t match.

A key part of the firm’s growth strategy is acquisitions. This helps it achieve those economies of scale that are so important to its competitive position, but it does bring risks. 

Buying other businesses brings a risk of overpaying and this is something investors can’t ignore. And the stock isn’t exactly cheap after catching a boost from the Deutsche upgrade.

That’s why I’m keeping my eye on Compass. The firm has a strong position in a durable industry and this could be a valuable combination for investors.

Analyst upgrades

Both Anglo American and Compass Group have a mixture of Buy and Hold ratings from analysts right now. That means there’s scope for future upgrades, which could see them gather momentum.

This is something investors should pay attention to. But what matters most in both cases is the underlying business and its future prospects. 

I think Anglo’s strategic shift has been unfortunately timed, but it looks like a good long-term move. And Compass has what looks to me to be an extremely durable competitive strength. 

That’s why I’m following both closely. But I’m looking to be patient and wait for my opportunity, rather than rushing in too soon.

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Others, including gold miner Fresnillo, enjoyed growth this year due to jitters in the US economy. The combination of trade tariff uncertainty and a possible interest rate cut have fuelled demand for safe-haven assets like gold and other metals.

But Glencore and Anglo haven’t had the easiest ride in 2025 — both stocks remain in the red, with Glencore down 14.6% year to date and Anglo off 7%. But with volumes climbing and dealmaking heating up, recovery might finally be on the cards.

So are these mining giants worth considering at today’s prices?

Glencore: stretched balance sheet

Glencore’s been particularly hard hit. Earnings per share (EPS) collapsed 285% year on year, pushing the company into a £1.28bn loss for 2024. That’s despite revenues of more than £180bn. Margins have shown signs of stabilising in H1 2025, but it’s hardly been enough to restore confidence.

For the current year, analysts expect full-year EPS of just 10p per share — less than half the 24p delivered in 2024. The balance sheet doesn’t inspire much faith either. Debt now outweighs equity, leaving the company heavily exposed if commodity prices fall further.

I can see why some investors might be tempted, given Glencore’s enormous revenue base and global reach. But personally, it’s not a stock I’d consider right now. The numbers remain weak and the leverage problem feels too big to ignore.

Anglo-American: a merger boost

Anglo-American however, looks more promising. The stock jumped 10% this week after announcing a $53bn merger with Canadian copper miner Teck Resources. Together they’ll control two strategically-positioned Chilean mines — Quebrada Blanca and Collahuasi — which should create cost savings and synergies.

The timing’s important. Copper demand’s projected to soar in the coming decades as electric vehicles (EVs), solar panels and wind farms drive the global transition to clean energy. By combining resources in Chile, Anglo and Teck should be well-placed to capitalise on this megatrend.

Of course, Anglo isn’t immune to challenges. It posted a £2.4bn loss last year on £21.41bn of revenue, highlighting just how expensive mining operations can be. But unlike Glencore, Anglo’s debt remains well covered by equity, giving it more breathing space.

A bright future

The Teck merger, while promising, isn’t risk free. Political shifts in the US have recently slowed solar development, threatening demand growth for copper. Integrating two large mining operations may help mitigate this but isn’t straightforward either, with cost overruns and operational hiccups a possibility.

But risks aside, I think it makes Anglo a highly appealing option. The balance sheet is stronger, the merger could unlock real value and long-term copper demand is hard to ignore. It’s certainly a stock investors may want to consider for long-term growth – and one I plan to add to my portfolio as soon as I’ve some free capital.

For me, the takeaway’s clear. FTSE 100 miners may still be under pressure, but not all are created equal. Glencore looks stuck in neutral, while Anglo-American’s merger could mark the start of a new chapter.

The post After a tough 2025, FTSE 100 miners are seeing unusually high trading volume. Time to buy? appeared first on The Motley Fool UK.

Mega-merger

The bringing together of two mining giants is being promoted as a “merger of equals”. The newly formed company, to be named Anglo Teck, will see Anglo American shareholders owning 62.4% of the outstanding shares.

The miner will issue 1.3301 shares to existing Teck shareholders in exchange for each Teck share. It also intends to declare a special dividend of $4.5 billion (approximately $4.19 per ordinary share), ahead of completion.

The company will continue to have its primary listing on the London Stock Exchange. Secondary listings will be in New York, Toronto and Johannesburg.

One key commodity links both mining giants: copper. The merger will bring together six huge copper assets, with a combined annual production of 1.2m tonnes (mt). This is expected to increase to 1.35mt by 2027.

Copper demand

I have long viewed copper as the new gold. In the developed world, there is 230 kg of copper installed per person, but at a global level there is just 65 kg. To bridge this gap, the global installed resource base needs to increase fourfold in the coming decades, to 2,000mt. But even that estimate could be conservative.

Demand for copper is coming from multiple sources. These include renewable power generation (wind and solar), EVs, electricity grid infrastructure modernisation, and data centre expansion to power the AI revolution.

Copper deficit

I continue to believe that the world is sleepwalking into a copper deficit in the coming decade. For starters, ore grades are in long-term decline. The low-hanging fruit has long been mined.

But at a more fundamental level, governments and society do not view the industry in a favourable way. It is viewed as a polluter through its insatiable energy demands. In addition, many mines are located in areas where water supply is scarce.

The upshot of this hostility is that the timeline for expanding the world’s resource base is ever increasing. On average, it takes 15 years to obtain all relevant environmental planning permits from exploration, mine development and subsequent production.

Merger risks

The merger is expected to deliver annual pre-tax savings of approximately $800m, four years after completion. Economies of scale, operational efficiencies, and commercial and functional consolidation, will be the main drivers.

However, with a merger of this size, there is no guarantee that such savings will ever be realised. At the moment such numbers are estimates and the risk is they may not be realised. Plus a one-off cash cost of $700m will be incurred in the first three years following completion.

Bottom line

Following the completion, Anglo Teck will become a top-five copper producer. Indeed, copper production is expected to contribute 72% of total underlying earnings before income tax, depreciation and amortisiation (EBITDA).

Both miners have been undergoing significant portfolio rationalisation recently. For example, Teck sold its coal resource to Glencore and Anglo has divested itself of platinum group metals. So in that sense the merger could be a long-term win for shareholders.

Personally, I remain convinced of a copper deficit, which is why I own the stock. But its volatile nature means it will not be a fit for every investor’s portfolio.

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