High -quality blue chip FTSE 100 Companies usually do not show huge fluctuations in variability. More often it is a feature shown by the supplies of smaller capitalization. Mining companies, however, is a completely different game of football. But for me the price of Roller-Coaster action can often be a possibility.

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The last few years were unhappy Angloj American (LSE: AAL) Shareholders. Many warnings about profits, business lines and costs increased that its price of shares has dropped by 40%.

It happened that last year OSH He tried to take over the company. Ultimately, the management decided to support the radical CEO turn plan, the largest in its 108-year history.

As a simplification of the portfolio, he has already learned his steel coal activity for USD 4.8 billion. Later in the year he will receive USD 500 million after the sale of its nickel assets.

Platinum and De Beers

One of the crown jewels in his portfolio are metals of the platinum group. Here, sales are served using Demerger. Independent business is to start trading on London Stock Exchange in June.

One of the reasons he chose a letter in London was to reduce the risk of flow. If the shares were registered on the foreign stock exchange, institutional investors could be forced to sell, causing a decrease in stock price. In addition, English will initially stop 19.9%, and then protecting shareholders.

Diamonds are one of the activities he is still trying to relieve. The amount of popularity of cheaper diamonds grown in the laboratory has decimated prices over the past few years.

De Beers has a cult brand and is an undoubted world leader in the industry. Personally, I do not expect that the buyer will appear until the prices are somewhat recovered. Anglo wants to avoid giving assets cheaply.

Simplified portfolio

After the transformation is completed, it will remain with two assets contributing to earnings: copper and iron ore. Woodsmith, the offer of nutrients of crops, will remain part of its portfolio, but it is unlikely to go to production in this decade.

Copper is its valued resource; This was the main reason why OHS fell primarily. Its three best mines constitute 6% of known global reserves and copper resources. In the early 1930s, it expects that the annual production will exceed 1 billion tons.

It is expected that the demand for copper will raise. For example, EVs require four times more copper than a established internal combustion engine. The path towards EV adoption can be unclear, but long -term adoption trends remain beneficial.

Probably the largest growth driver comes from the expansion of the electrical network. EVS need power. And I also need it. But the nets have not been modernized for decades. National grid It predicts that a seven -time raise will be required. The globally international energy agency expects investment by 2050 in total 11 %.

Of course, no path to the expected future is never guaranteed. But one fact is undeniable. Finding recent economically profitable copper deposits is becoming more and more hard. I think copper deficit is inevitable. That is why I am positioning my portfolio for such an eventuality now. I believe that investors believe that Anglory American is part of a balanced wallet. I certainly have.