Surging iron ore and copper prices and talk of a commodities supercycle have turbocharged the share prices of many FTSE 100 mining stalwarts, leading some directors to take the chance to bank some cash.
Among them are a trio of Anglo American (AAL) directors who have seemingly taken advantage of the almost 40% rise in the company’s share price since the commodities rally began in November.
ANGLO DIRECTORS OFFLOAD £4 MILLION IN SHARES
This week Didier Charreton, Anglo’s director of people and organisation, sold 87,218 shares at £29.28 each in a deal worth £2.6 million, while Bruce Cleaver, chief executive officer of the firm’s De Beers diamond arm, sold 25,000 shares at £28.85 each in a transaction totaling £721,250.
That came after Ruben Fernandes, CEO of its base metals division, sold 22,179 shares at £28.59 each in a deal worth over £634,000.
Meanwhile Peter Toth, group executive for strategy and development at fellow mining giant Rio Tinto (RIO), sold 3,149 shares at £64.77 each in a deal worth around £203,000.
Rio shares have also gone up significantly since the commodities rally started, rising over 30% since the start of November.
‘NOT SEDUCED BY RISING COMMODITY PRICES’
Despite the market’s enthusiasm for mining stocks at the moment, Anglo American’s chief executive Mark Cutifani said at the time of the firm’s annual results last month that the miner won’t be ‘seduced’ by rising commodity prices.
In comments reported by the FT he said: ‘I have been in the industry for 44 years and I have seen cycles and super cycles. We are going to keep the discipline on our capital because it is moments like this when companies lose sight of the basics and get themselves into trouble.’
Last year was a tale of two halves for the miner, with underlying earnings dropping 40% to $3.4 billion in the first six months of 2020 as lockdowns hit and commodity prices tanked.
But in the second half earnings bounced back to $6.5 billion, Anglo’s best second-half performance in 10 years, as commodity prices boomed and operations returned to nearly full capacity.
Richard Anderson, a non-executive director at Holiday Inn owner InterContinental Hotels (IHG), has bought 7,000 of the firm’s American Depositary Receipts (ADRs) at $71.73 in a deal worth $502,076 in total. Each ADR represents one ordinary IHG share.
Greg Fitzgerald, chief executive of housebuilder Vistry (VTY), has purchased 53,618 shares in the company at £9.25 each in a transaction totaling over £495,000.
For a full list of the week’s most significant trades, click here.