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Anglo American plc (AAUKF)

- OTCPK - Current
  • Today, 11:58 AM
    • Platinum miners betting on fuel cell vehicles to help boost demand and prices for the metal are in danger of having their hopes dashed, at least in the medium term, as electric and hybrid cars are taking a bigger share of the market, according to a Reuters analysis.
    • The world's three largest platinum producers - Amplats (OTCPK:AGPPY, OTCPK:AGPPF), Impala Platinum (OTC:IMPUF, OTCQX:IMPUY) and Lonmin (OTC:LNMIF, OTCPK:LNMIY) - are all investing in projects related to fuel cell technologies, but analysts doubt growth in fuel cell vehicles will keep up with their electric counterparts, mostly because battery recharging stations are less costly and already more widespread than hydrogen refueling stations.
    • Amplats CEO Chris Griffith, whose company has invested $35M in the last five years in companies developing new uses for platinum, mostly through fuel cell technology, says he does not want Amplats "to be a Kodak."
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  • Thu, May 21, 12:17 PM
    • Anglo American's (OTCPK:AAUKF, OTCPK:AAUKY) diamond producing De Beers unit says it will seek to sell its Kimberley Mines in South Africa in the coming months as it focuses on much larger mines across southern Africa.
    • De Beers says it wants a potential buyer who is willing to invest in the operations and extend the mine's operating life beyond 2018.
    • Kimberley Mines, South Africa's second-largest diamond operation, is a mature mine that produces diamonds largely from tailings; it recovered 722K diamond carats last year and has a mining right that extends to 2040.
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  • Tue, May 5, 7:09 PM
    • Anglo American (OTCPK:AAUKF, OTCPK:AAUKY) says an order by Chile's environmental regulator to shut a waste dump at its Los Bronces copper mine will not impact production or operations there.
    • Los Bronces was fined 3.8B pesos ($6.24M) over infractions including acid drainage at the waste dump, the regulator said earlier today; it also said that it has ordered the closure of the dump until "a definitive solution that permits the adequate drainage of acids generated by the project is implemented."
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  • Thu, Apr. 23, 8:58 AM
    • Anglo American (OTCPK:AAUKF, OTCPK:AAUKY) cuts its FY 2015 diamond output guidance due to weaker market conditions, but reaffirms its volume guidance for all other commodities after reporting a mixed output performance for its Q1.
    • Anglo's De Beers diamond unit beat out iron ore to become the company's largest earnings driver last year, accounting for 42% of underlying net profit, but it is lowering full-year diamond output guidance to 30M-32M from a prior range of 32M-34M carats because of difficult diamond market conditions.
    • Consolidated iron ore production, Anglo's second largest earnings driver last year, rose 19% to 13.4M tons in Q1; its Minas Rio mine, which began commercial production in October, produced 1.2M tons of iron ore in Q1.
    • Anglo's Q1 copper output fell 15% to 171.8K tons, and consolidated coal output was broadly flat at 24M tons.
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  • Tue, Apr. 14, 7:58 AM
    • S&P places some of the world's biggest iron ore miners on credit watch negative, as it lowers its iron ore price forecasts to $45/metric ton for the rest of this year, $50 for next year and $55 for 2017; the previous forecasts were $65 for this year and 2016, and $70 for 2017.
    • The eight iron ore producers being watched by S&P include global giants BHP Billiton (NYSE:BHP), Rio Tinto (NYSE:RIO), Vale (NYSE:VALE), Fortescue Metals (OTCPK:FSUMF) and Anglo American (OTCPK:AAUKF, OTCPK:AAUKY).
    • "The revision of our price assumptions and the sharp fall of iron ore spot prices reflect the severe supply and demand imbalance in the market, which we believe could persist for the next two years," S&P says.
    | 10 Comments
  • Fri, Mar. 27, 12:38 PM
    • Barrick Gold's (ABX +0.3%) says it has closed its Zaldivar copper mine in Chile for safety reasons after heavy rains swept across the country's northern desert region this week, increasing to eight the number of copper miners that have been affected by the bad weather.
    • No. 1 copper miner Codelco already had suspended mining operations at its Chuquicamata, Ministro Hales, Radomiro Tomic, Gabriela Mistral, and Salvador deposits due to the state of roads and mine access following the rains.
    • Other mines affected by the rains include Antofagasta's (OTC:ANFGF) Michilla mine and Centinela copper complex, Anglo American's (OTCPK:AAUKF, OTCPK:AAUKY) Mantoverde and Lundin Mining's (OTCPK:LNDNF) Candelaria.
    • Peru produces a third of the world's copper.
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  • Fri, Feb. 13, 8:49 AM
    • Anglo American (OTCPK:AAUKF, OTCPK:AAUKY) reports a $2.51B net loss for FY 2014, worse than the $961M loss in the previous year, or revenue of $27.1B, down 7% Y/Y, as the miner was at the mercy of weak commodity prices.
    • A major reason for the loss was a $3.5B writedown on its Minas Rio mining project in Brazil, after slashing the value of the project by $4B in 2012 as it fell three years behind schedule and costs shot up to more than $8B from earlier estimates of $2.7B.
    • “It is going to be a tough one or two years,” CEO Mark Cutifani said on the earnings conference call. “The supply we’re seeing on the bulk side will weigh heavily on the markets,” referring to large volume commodities such as iron ore and coal.
    • However, Anglo earned $4.9B EBIT in FY 2014, slightly ahead of analyst forecasts, as a slump in currencies in countries where it operates such as Australia, South Africa and Colombia provided a $1.3B lift to EBIT.
    | 3 Comments
  • Thu, Feb. 12, 11:59 AM
    • Rio Tinto (RIO +2.3%) has no major M&A plans in the works, preferring to focus on building new mines rather than buying low-quality assets in the current market environment, CEO Sam Walsh says.
    • The CEO says shareholders have asked whether Rio had any interest in deals, with some wondering whether the company might consider approaching Freeport McMoRan (NYSE:FCX) or Anglo American (OTCPK:AAUKF, OTCPK:AAUKY), but "we are not doing that," adding that shareholders had dismissed the idea that Rio would give Glencore (OTCPK:GLCNF, OTCPK:GLNCY) "any air at all" to consider a tie-up.
    • Talks are still ongoing with the Mongolian government to settle all outstanding concerns about the development of the underground Oyu Tolgoi mine, Walsh says while indicating that Rio has not offered to increase its stake in the mine.
    • Walsh also says Rio will not take part in any upcoming tender process for two blocks of the massive Simandou iron ore deposit in Guinea.
    • Earlier: Rio Tinto's $2B buyback signals shift in strategy
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  • Thu, Feb. 12, 8:58 AM
    • Anglo American (OTCPK:AAUKF, OTCPK:AAUKY) is in talks with South Africa’s government over conditions for selling stakes in several coal mines, FT reports, as it attempts to improve its performance by shedding underperforming assets.
    • Anglo reportedly is looking to offload majority ownership of three mines that supply thermal coal used in power generation by Eskom, South Africa's state utility; the mines produce more than half of Anglo’s annual South African coal output.
    • The South African government’s proposed conditions - which would include a requirement to fulfill "black economic empowerment” targets by selling to black-controlled South African businesses - could limit Anglo’s freedom to restructure its local businesses, FT reports.
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  • Wed, Jan. 28, 7:49 AM
    • Anglo American (OTCPK:AAUKF, OTCPK:AAUKY) warns that it expects to take a charge when it reports FY 2014 results next month.
    • Anglo does not provide details of the scale of the financial impact, which it blames on falling coal and iron ore prices, but the warning echoes recent announcements by other large mining companies.
    • Analysts see Anglo taking charges of anywhere from $1B to $5B, relating specifically to its costly Brazilian iron ore project Minas Rio and its Australian coal operations.
    • Anglo says it beat its Q4 production targets, with production of iron ore up 14% to more than 48M metric tons at its Kumba subsidiary, with Minas Rio adding a further 688K metric tons.
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  • Thu, Jan. 22, 3:23 PM
    • Anglo American (OTCPK:AAUKF, OTCPK:AAUKY) is considering the sale of several coal assets in eastern Australia as the miner struggles to boost returns during a slump in commodity prices, FT reports.
    • Anglo hopes to sell five mines in Queensland and New South Wales as part of a $3B-$4B asset disposal program ordered by CEO Mark Cutifani to help bolster its balance sheet.
    • The miner also is selling platinum mines in South Africa and copper assets in Chile as part of its worldwide disposal program.
    | 1 Comment
  • Wed, Jan. 14, 7:57 AM
    | 6 Comments
  • Dec. 9, 2014, 7:58 AM
    • Anglo American (OTCPK:AAUKF, OTCPK:AAUKY) says it is likely to miss its medium-term profitability targets, another sign of the havoc falling commodity prices are wreaking in the mining sector.
    • In an investors day presentation, Anglo says it expects its return on capital employed to reach 12% in 2016 after last year setting 15% as its target, and says it is seeking ways to boost its EBIT by $2B so it can achieve the target.
    • Anglo also reduces its expected capital spending by $500M-$800M to $6B-$6.2B for this year and by $800M-$1B to $5.2B-$5.5Bfor 2015, and raises its 2014 production guidance for iron ore, metallurgical coal, thermal coal, copper and nickel.
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  • Nov. 7, 2014, 3:57 PM
    • Firms are showing interest in Anglo American's (OTCPK:AAUKF, OTCPK:AAUKY) three Chilean copper mines, but a lack of public information is holding up some potential buyers, WSJ reports.
    • Anglo reportedly hopes to raise at least $1B from the sale of the Mantos Blancos and Mantoverde mines, along with its share of the El Soldado mine and the Chagres smelter.
    • One of the biggest mining companies in Chile, Anglo plans to concentrate on its larger copper operations at Los Bronces mine and Collahuasi.
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  • Oct. 27, 2014, 8:10 AM
    • Anglo American (OTCPK:AAUKF, OTCPK:AAUKY) says it has delivered its first iron ore on the ship from its Minas Rio iron ore project in Brazil.
    • Anglo says the project was finished within its revised targeted budget and time schedule after placing more than 80K metric tons of iron ore on a chartered vessel for delivery to China.
    • Anglo bought Minas Rio in 2008 for $5.5B, and it cost $8.8B to build vs. an initial estimate of $2.5B; the miner is now focused on ramping up the operation over the next 18-20 months to its full capacity of 26.5M tons/year of iron ore.
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  • Oct. 23, 2014, 9:59 AM
    • Anglo American (OTCPK:AAUKF, OTCPK:AAUKY) reports a 37% Y/Y increase in Q3 iron ore production to 13M metric tons, joining larger rivals such as Vale in increasing output to grab market share even as prices fall.
    • CEO Mark Cutifani says Anglo will press on with its much-delayed Minas Rio iron ore project in Brazil, which is expected to deliver its first ore later this year.
    • Raises its forecast for full-year output at its Kumba Iron Ore subsidiary to 45M-46M metric tons from 44-46M.
    • Copper output fell 15% Y/Y due to a decline in the grades of ore at two of the company's main Chilean mines, thermal coal production fell 4% because of bad weather in Colombia, and platinum production dropped 14% as Anglo continues to shake off the effects of a five months-long strike earlier this year.
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Company Description
Anglo American is engaged in the mining and natural resource sectors. Co. is a global leader in platinum group metals and diamonds, with significant interests in coal, base and ferrous metals, and an industrial minerals business.