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It’s been an interesting week for FTSE 100 miners. Shares in Glencore (LSE: GLEN) and Anglo-American (LSE: AAL) have seen unusually high trading volumes, despite both companies reporting sharp earnings losses in recent months.
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.
