Anglo American plcOTCPK - Current
Thu, Oct. 13, 1:28 PM
- Apollo Global (NYSE:APO) has teamed up with Xcoal Energy & Resources to beat out the likes of BHP Billiton for Anglo American's (OTCPK:AAUKF, OTCPK:AAUKY) Australian metallurgical coal assets, according to Bloomberg.
- The deal value could ultimately top $1.5B, and include a contingent value right which may include more money for Anglo if the price of coking coal rises in the future.
- Anglo, meanwhile is lower by 4.7% today as the mining sector as a whole takes a hit from weak Chinese export data.
Thu, Oct. 13, 12:18 PM
- Iron ore heavyweights Rio Tinto (RIO -3.4%) and BHP Billiton (BHP -3.5%) are sharply lower following the news that Chinese exports fell by a more than expected 10% and imports dropped by a more than anticipated 1.9%.
- Also down substantially are the likes of Freeport McMoRan (FCX -6.5%), U.S. Steel (X -5.7%), Teck Resources (TCK -5.4%), Cliffs Natural Resources (CLF -5%), Anglo American (OTCPK:AAUKF, OTCPK:AAUKY) and Glencore (OTCPK:GLCNF, OTCPK:GLNCY).
- Also, Rio and BHP are downgraded to Sell from Neutral at Citigroup, which cites the impact of slack China commodities demand after the country's monetary stimulus and supply restrictions have driven a surge in bulk prices in 2016.
Wed, Oct. 12, 11:12 AM
- Peabody Energy (OTCPK:BTUUQ +1.8%) and Japan's Nippon Steel have set the Q4 contract benchmark for metallurgical coal at $200/metric ton, more than twice the Q3 price, Reuters reports.
- The big jump underscores a resurgence in Asia's appetite for coal that also has been reflected in a recent mark-up in spot cargoes.
- The deal with BTU marks a departure from the normal quarterly price-setting mechanism where Nippon and Anglo American (OTCPK:AAUKF, OTCPK:AAUKY) typically establish the benchmark.
- ETF: KOL
Tue, Oct. 4, 1:45 PM
- Anglo American (OTCPK:AAUKF, OTCPK:AAUKY) shares rose above £10 in London trading for the first time in more than a year, as the rebound in commodity prices and a flurry of asset sales and cost cuts that lowered its debt have brought the miner back from the brink of disaster.
- The stock hit a record-low 215.55 pence in January but has more than tripled this year, for the best performance on the U.K.’s FTSE 100.
- “Further asset sales and meaningful consensus mark-to-market upgrades should support the share price in the near term,” Barclays says.
Mon, Oct. 3, 4:50 PM
- The P-E consortium headed by Apollo Global Management (NYSE:APO) is the clear front-runner to purchase Anglo American's (OTCPK:AAUKF, OTCPK:AAUKY) Queensland metallurgical coal assets and now is in exclusive talks, Australian Financial Review reports.
- APO reportedly is working in a consortium with Pennsylvania coal exporter Xcoal Energy Resources, the largest U.S. exporter of coal.
- A BHP Billiton (NYSE:BHP) alliance with Mitsubishi and U.S.-based Coronado Coal have not yet pulled out of the race for the assets, according to the report.
Mon, Oct. 3, 12:58 PM
- Fortescue Metals (OTCQX:FSUMF) CEO Nev Power dismisses concerns about oversupply in the iron ore market, taking the view that a prolonged commodity crash is finally giving way to a cyclical upturn.
- "There is stability in demand in China, and most of the new large volume supply has already come on to the market," Power tells Financial Times, adding that some forecasters are overestimating the speed at which new supply would materialize.
- The CEO says long-term iron ore demand and price would be determined by Chinese economic policy and the rate of growth in emerging economies across Asia, and that “the demand side will be much more important than new supply.”
- Relevant tickers: VALE, BHP, RIO, CLF, OTCPK:GLCNF, OTCPK:GLNCY, OTCPK:AAUKF, OTCPK:AAUKY
Wed, Sep. 14, 12:48 PM
- Anglo American's (OTCPK:AAUKF, OTCPK:AAUKY) De Beers diamond unit expects some growth in the consumer market next year, but new CEO Bruce Cleaver warns that the overall sales environment likely will remain tough.
- De Beers has been hurt by slowing demand and lower prices after global demand for diamond jewelry hit a high of $81B in 2014 and production soared, leaving the market flooded by 2015, but "the diamond market is in much better balance than a year ago," Cleaver says.
- The company is heading into the critical holiday sales period for diamond jewelry, including the Diwali festival in India, Christmas and then Chinese New Year.
- De Beers is set next week to officially open its majority owned Gahcho Kue diamond mine in Canada's Northwest Territories, which has a projected annual output of 4.5M carats.
Tue, Sep. 6, 12:49 PM
- Anglo American's (OTCPK:AAUKF, [[AAAUKY]]) De Beers diamond unit says it sold $630M of rough diamonds in its seventh sales cycle this year, up from $528M in the previous sale; De Beers sold ~$3.56B worth of rough diamonds over the first six sales cycles of the year.
- De Beers says manufacturers brought forward some of their demand in order to cut and polish rough diamonds in time for the holiday season.
- Rough diamond prices have rebounded 4.7% YTD after De Beers and rival Alrosa cut off supply to try to support the market after falling 18% in 2015 amid slowing Chinese demand and an industry-wide credit crunch.
Mon, Aug. 15, 3:03 PM
- Anglo American (OTCPK:AAUKF, OTCPK:AAUKY) is under pressure pressure from major shareholder South Africa’s Public Investment Corporation to break up the company, according to a weekend report from The Times.
- Anglo’s platinum business likely will not be part of a selloff, as CEO Mark Cutifani wants mining the metal to continue to be one of the company’s three core businesses along with copper and diamonds, but the PIC reportedly could seek to roll its 30% stake in rival platinum miner Lonmin (OTC:LNMIF) into a new company based on other businesses Anglo is more open to selling.
- The report notes that the South African government often has expressed the view that it would like to see a nationally owned mining company emerge at some point, and that Cutifani himself had said he would be ready to look at the possibility of bundling any non-core businesses together for sale.
Fri, Aug. 12, 4:55 PM
- Anglo American’s (OTCPK:AAUKF, OTCPK:AAUKY) bid to sell its Barro Alto nickel mine in Brazil has stalled because bids from potential suitors fell short of the valuation sought by the company, Bloomberg reports.
- The mine has attracted interest from companies including Glencore (OTCPK:GLCNF, OTCPK:GLNCY), X2 Resources and Sherritt International (OTCPK:SHERF), according to the report.
- Anglo wants to raise more than $3B from asset sales as part of a plan to cut debt below $10B by the end of the year.
Wed, Aug. 3, 8:44 AM
- A consortium led by Apollo Global Management (NYSE:APO) has emerged as the front-runner for Anglo American's (OTCPK:AAUKF, OTCPK:AAUKY) Australian met coal mines, valued at as much as $1.5B, Reuters reports.
- APO has teamed up with energy-focused P-E firm Riverstone Holdings and Pennsylvania coal exporter Xcoal Energy & Resources, and is on site finalizing details of the deal, according to the report.
- Reuters previously reported that BHP Billiton (NYSE:BHP) and Glencore (OTCPK:GLCNF, OTCPK:GLNCY) as well as suitors from China, Japan and India were looking at the assets.
Fri, Jul. 29, 9:58 AM
- Anglo American (OTCPK:AAUKF, OTCPK:AAUKY) rebuffed informal approaches in recent months from Indian billionaire Anil Agarwal, who oversees Vedanta Ltd., the country’s biggest mining company, Bloomberg reports.
- Agarwal contacted Anglo to discuss potential ideas including a merger, but preliminary deliberations ended after Anglo concluded a deal was not feasible, according to the report.
- Anglo American is trying to mount a turnaround after the commodity price slump sent its stock plunging 75% last year, but it is the best performer in the FTSE 100 YTD, up 181%.
Thu, Jul. 28, 9:19 AM
- Anglo American (OTCPK:AAUKF, OTCPK:AAUKY) +5.5% in London trading after reporting an H1 net profit of $698M, down 23% Y/Y but better than forecasts for a gain of just $340M.
- Soft commodity prices weighed on sales, as Anglo's H1 revenue fell 20% to $10.6B, but net debt fell to $11.7B from $12.9B at the end of 2015, mostly the result of cost cuts and volume increases.
- Anglo says it is trying to sell $3B-$4B of assets in 2016, including its iron ore, coal and nickel units, and expects net debt to fall to less than $10B by year-end.
- The De Beers diamond unit was a major driver of H1 earnings, accounting for 42% of company-wide EBIT, as a 29%Y/Y increase in volumes sold provided a boost to results.
Thu, Jul. 28, 8:52 AM
Tue, Jul. 26, 10:23 AM
- Three of the world's top five miners will need to step up asset sales in this year's H2 to meet a $14B full-year target as they race to cut debt, Reuters reports.
- Glencore (OTCPK:GLCNF, OTCPK:GLNCY), Anglo American (OTCPK:AAUKF, OTCPK:AAUKY) and Vale (NYSE:VALE) have $5.4B from asset sales, far short of their target, delaying efforts to reduce debt and improved their credit ratings.
- Asset sales lost steam amid the H1 rebound in commodity prices, as iron ore and coal prices rallied ~30% and copper prices rose ~7%, easing the sense of urgency for sellers while bidders waited for the rallies to fizzle, but most analysts and investors expect prices to fall during H2, as iron ore, coal and copper markets remain oversupplied.
- Vale, which hopes to sell up to $5B worth of assets this year, may come under more pressure as so far it has only fetched $269M from the sale of three iron ore carriers, while Glencore and Anglo appear to be more on track toward their respective goals of $4B-$5B and $3B in asset sales this year.
- BHP Billiton (NYSE:BHP) and Rio Tinto (NYSE:RIO) are considered well placed to buy assets, with interest in copper, but both have been surprised at the high prices that copper assets have fetched so far.
Fri, Jul. 22, 5:23 PM
- Anglo American's (OTCPK:AAUKF, OTCPK:AAUKY) has put its De Beers diamond unit has put its Snap Lake mine in Canada's Northwest Territories up for sale after suspending operations at the mine last December, Reuters reports.
- Snap Lake, which has not made money since production began in 2008, produced 1.2M carats last year and initially was planned to operate until 2028.
- De Beers last month received approval to flood the mine tunnels, reducing maintenance costs, under a revised suspension plan, and the company says it may proceed with the flooding plan in Q4 if no buyer is found.