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The mining industry has been a hotbed of corporate activity over the past month. A flurry of mergers, acquisitions, and strategic consolidations have concluded amid rising commodity demand, particularly in critical minerals like copper, lithium, and precious metals. This period has seen companies positioning themselves for a future dominated by electrification, renewable energy, and geopolitical supply chain concerns.
Major mining players have pursued deals to enhance scale, diversify portfolios, and secure resources in high-demand areas. While economic uncertainties, including fluctuating interest rates, China’s stimulus measures, and fluid global trade dynamics, have influenced market sentiment, the sector’s corporate actions reflect optimism about long-term growth in metals essential for energy security, particularly from data centre demand.
Anglo American-Teck Resources merger
The standout event of the month was the announcement of a merger between Anglo American and Canada’s Teck Resources. The deal, described as a merger of equals, aims to create a global mining giant with a combined market value exceeding $53 billion. The new entity, tentatively named Anglo Teck, will have its primary listing in London and focus heavily on copper production, with over 70% exposure to the metal while the balance of the portfolio will include iron ore, steelmaking coal, and other critical minerals.
Anglo American, a London-listed diversified miner, will combine its assets – including major copper operations in Chile and Peru – with Teck’s expertise in Canadian mining, particularly in British Columbia’s copper and zinc projects. The management team expects to generate synergies worth $800 million annually, driven by operational efficiencies and shared technology. Shareholders of Anglo American are set to receive a $4.5 billion special dividend prior to completion, with post-merger ownership split at approximately 62.4% for Anglo holders and the rest for Teck’s.
The deal is expected to conclude in 12 to 18 months and underscores the industry’s race to consolidate copper supplies amid strong demand from electric vehicles, renewable infrastructure buildout, and an aggressive roll-out of copper intensive data centre infrastructure. This follows Teck’s earlier divestment of its steelmaking coal business in July 2024, allowing it to pivot toward base metals.
Beyond Anglo-Teck
Beyond the Anglo-Teck tie-up, the past month also saw several other notable corporate actions, signalling a broader trend of consolidation in lithium, silver, gold, and royalties. On August 29, Australian lithium producer Sayona Mining completed its merger with Piedmont Lithium, formerly Elevra Lithium – a move that strengthens their position in North American lithium supply chains for battery production.
In the silver space, Pan American Silver acquired MAG Silver, bolstering its market position in precious metals. First Majestic Silver also finalised its acquisition of Gatos Silver, consolidating control over high-grade silver assets in Mexico.
Several smaller deals were concluded in the mid-tier gold and copper arena, highlighting interest in polymetallic deposits and reflecting a strategic push toward vertical integration and risk mitigation in volatile commodity markets.
Markets respond positively
The Anglo-Teck merger announcement was positively received by the market. Teck Resources’ US-listed shares surged nearly 24% while Anglo American also closed 8% higher on the day. The news triggered notable price movements across mining stocks, with sympathy plays evident in peers reacting to the deal’s implications for sector consolidation and copper dominance.
Both Glencore and Antofogasta, key competitors in copper, rose sharply on the news with the deal’s potential to intensify competition in strategic base metals. Share price reactions from other majors, Rio Tinto and BHP Billiton, were more muted. These majors are anchored primarily to the fortunes of iron ore, which has been weighed down by the prospect of oversupply from Guinea’s megaproject, Simandou.
Gold stocks have shone brightly over the past month, driven by record-high bullion prices. Gold prices surpassed $3,600/ounce, up over 25% year-to-date, driving a rotation toward safe haven assets as global uncertainties mount. Top performers included McEwen Mining, which led with strong 30-day returns, followed by AngloGold Ashanti and Newmont Corp., as investors sought exposure to miners with robust free cash flows. Overall, gold equities rose more than 50% in 2025, propelled by robust exchange-traded-fund inflows.
Platinum mining stocks have also experienced a remarkable performance in the past month, mirroring the metal’s price rally driven by supply deficits and industrial demand. Platinum prices climbed more than 50% year-to-date, even outpacing gold’s impressive run. This surge breaks a three-year slump and stems from large deficits between demand and supply. Major producers like Anglo American Platinum, Impala Platinum and Northam Platinum have experienced stock gains in well in excess of 80% for the year-to-date. The 2025/26 outlook projects continued deficits, positioning platinum group metal (PGM) miners for sustained performance as PGM basket prices potentially catch up to gold’s momentum.
While metals shimmer, hurdles remain
In summary, the past month’s corporate actions, led by the Anglo-Teck merger, points to a continued reshaping of the mining landscape, with a positive influence on stock dynamics. As commodity prices for gold and platinum soar, the industry appears poised for further growth, though challenges like regulatory hurdles, economic headwinds, and geopolitical uncertainty remain.
MARKET MOVES
Bonds
Government bond markets across major economies reflected shifting expectations on United States (US) monetary policy over the past week. In the US, the 10-year Treasury yield hovered near 4.03%, close to its lowest level in five months. Softer US labour data and steady inflation readings reinforced bets that the US Federal Reserve (Fed) will soon ease policy. August’s US consumer price index (CPI) rose 0.4% from the previous month, slightly hotter than forecast, while the annual pace held at 2.9%. At the same time, jobless claims surged to 263,000 – their highest since 2021 – signalling weakness in the labour market. Futures markets now assign a 93% probability of a quarter-point reduction at next weeks Fed meeting, with some analysts positioning for a larger cut.
In the United Kingdom (UK), Gilt yields eased after peaking earlier in the week. The 10-year rate slipped to 4.66% as softer US data tempered global rate fears, though domestic concerns about fiscal credibility remain. The Autumn Budget looms, and UK Chancellor Rachel Reeves faces pressure to balance spending with tax increases. Bank of England (BoE) Governor Andrew Bailey stressed uncertainty around the timing of British rate cuts. German 10-year yields steadied around 2.7% after the European Central Bank (ECB) kept rates unchanged. ECB President Christine Lagarde hinted the easing cycle may be over, citing firmer growth projections and a fading disinflation trend.
Equities
Wall Street paused in Asian trade on Friday morning, after a powerful rally pushed major benchmarks into uncharted territory. On Thursday, the Dow Jones jumped 1.36%, the S&P 500 added 0.85%, and the Nasdaq gained 0.72%, with all three hitting record highs. The momentum was underpinned by rising conviction that the Fed will move aggressively on rates. August inflation showed monthly consumer prices advancing 0.4%, slightly hotter than forecast, while the annual pace held at 2.9%. At the same time, jobless claims climbed to 263,000, their highest level in four years, pointing to labour market fatigue. Traders see a 25-basis point cut by the Fed as a certainty. Corporate news was mixed: multinational software company Adobe gained after strong quarterly earnings, data-centre server manufacturer Super Micro Computer advanced on Nvidia-linked shipments, while home furnishing retailer RH slumped on soft sales.
London’s FTSE 100 climbed over 0.5% on Thursday, driven by expectations of US rate cuts and strong moves in defence and consumer stocks. Defence company BAE Systems jumped 6%, food and support service provider Compass Group rose after a broker upgrade, and aerospace company Rolls-Royce and biopharma company GSK added roughly 2% each. European equities tracked higher as the ECB kept rates steady, with Lagarde hinting that the easing cycle may be over. The STOXX 50 gained 0.4%, while the STOXX 600 rose 0.5%, supported by industrial names such as aerospace corporation Airbus and automotive manufacturer Stellantis.
Commodities
Crude prices slid heading in to trade today, with Brent dipping below $66/barrel after extending a near 2% loss in the previous session. The retreat was driven by signs of weakening demand in the US and evidence of excess supply. Weekly government data showed a surprise build of 3.9 million barrels in US crude stocks, in sharp contrast to expectations for a drawdown. The International Energy Agency added to the pressure by forecasting faster-than-anticipated growth in global output, highlighting the expanded Organisation of the Petroleum Exporting Countries (OPEC+) supply increases. OPEC, however, maintained its view of steady demand and unchanged non-OPEC supply projections in its own report. Despite the recent softness, oil remains marginally higher for the week, thanks to earlier support from heightened geopolitical risks tied to conflicts in Ukraine and the Middle East. On the policy front, Washington is reportedly urging G7 partners to raise tariffs on India and China over their purchases of Russian crude, which could add another layer of complexity to trade flows.
Bullion prices continued to firm, climbing toward $3,650/ounce this morning – just shy of record levels – and set for a fourth straight weekly gain. The metal has benefited from a combination of expectations for Fed easing and ongoing demand for safe-haven assets. Inflation data showed annual CPI holding steady, while producer prices unexpectedly dropped, reinforcing a weaker economic backdrop. Rising US jobless claims, now at their highest level since 2021, further strengthened bets on a rate cut at the Fed’s upcoming meeting, with some speculation of a larger reduction. Heightened geopolitical risks – from intensified Middle East clashes to Russian drones breaching Polish airspace – added an extra layer of support for gold’s rally.
Currencies
The US Dollar Index steadied around 97.6 as we kicked off this morning, though remained under pressure as recent data kept expectations alive for Fed easing. US consumer prices in August advanced 0.4% month-on-month, a touch above forecasts, while the annual pace was steady at 2.9%. Labour data was softer, with jobless claims jumping 27,000 to 263,000 – their highest level since 2021 – signalling cooling momentum in the jobs market. On the policy front, Washington and Tokyo issued a joint statement reaffirming that currencies should be market-driven and volatility kept in check.
The euro reclaimed $1.17/€, buoyed by ECB communications and broad dollar weakness. The ECB left rates unchanged for a second straight meeting, but Lagarde signalled the easing cycle may be over, declaring the disinflation process complete. European Union growth forecasts were revised up to 1.2% in 2025, up from 0.9%, before slowing to 1.0% in 2026. Inflation projections nudged slightly higher, with headline EU CPI expected at 2.1% in 2025, 1.7% in 2026, and 1.9% in 2027.
Sterling climbed above $1.35/£, supported by the softer US dollar after disappointing American jobs data. The US economy added only 22,000 positions in August, far below the 75,000 expected, while unemployment rose to 4.3%. Despite the bounce, the pound remains down 0.3% for the week, weighed by domestic fiscal risks ahead of the UK’s November Autumn Budget. Bailey noted greater uncertainty about the timing of UK rate cuts.
*Please note that all information is at the time of writing.
Key indicators:
GBP/USD: 1.3572
GBP/EUR: 1.1558
GBP/ZAR: 23.57
BRENT CRUDE: $66.08
GOLD: $3,649.62
Sources: Reuters, Bloomberg, LSEG Workspace and Trading Economics.
Written by Citadel Senior Portfolio Manager, Kurt Benn and Citadel Global Director, Bianca Botes.
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