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.
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.
Fri, Jul. 22, 8:58 AM
- Bidders for Anglo American’s (OTCPK:AAUKF, OTCPK:AAUKY) Australian metallurgical coal assets, including mines in Queensland that could fetch up to $1.5B, are in talks with banks for acquisition financing, Bloomberg reports.
- Coronado Coal and AMCI Capital are competing for Anglo’s Moranbah and Grosvenor mines with BHP Billiton (NYSE:BHP), which bid through its coal joint venture with Mitsubishi, according to the report, which adds that a group led by Glencore (OTCPK:GLCNF, OTCPK:GLNCY) has dropped out.
- Anglo CEO Mark Cutifani wants to raise $3B-$4B from asset sales to reduce debt and refocus the company as a miner of diamonds, platinum and copper.
Wed, Jul. 20, 9:17 AM
- Anglo American (OTCPK:AAUKF, OTCPK:AAUKY) is down more than 7% in London trading after cutting its projected output for iron ore and copper for the current year and reporting mixed production trends in Q2.
- Anglo warns that it will produce less copper than expected this year and next as severe snowfall at its Los Bronces mine in Chile has slowed efforts to access higher-grade ore; copper production at the mine fell 22% Y/Y during Q2, while overall copper production fell 8% to 144.2K tons.
- The miner now sees 2016 copper production of 570K-600K tons from 600K-630K tons previously and 2017 copper output of 570K-600K tons from 590K-620K tons previously.
- Anglo says total Q2 iron ore production rose 1.6% Y/Y to 12.4M tons, due to the ramp-up of its Brazilian Minas Rio project which helped offset a 15% drop in output from Kumba Iron Ore in South Africa, where heavy rain and restructuring plans took a toll.
- Anglo says Q2 diamond output fell 19% to 6.4M carats after it cut production last year in response to tough market conditions.
Wed, Jul. 20, 4:04 AM
- Shares of both companies are in the red after the miners outlined several challenges in the country.
- BHP Billiton's (NYSE:BHP) fiscal 2016 iron ore guidance missed expectations by 3M tons because of its Samarco dam disaster.
- Anglo American (OTCPK:AAUKY) cut full year guidance for Brazilian iron ore production after posting mixed Q2 results.
Tue, Jun. 28, 8:52 AM
- Anglo American (OTCPK:AAUKF, OTCPK:AAUKY) says its De Beers diamond unit generated $560M from provisional rough diamond sales during the fifth sales cycle of 2016, ended June 27, down from $636M in the fourth sales cycle ended in May.
- De Beers says the results were in line with its expectations and typical seasonal demand patterns, adding that "rough diamond demand and polished diamond prices remain stable, reflecting steady consumer demand, but we maintain a cautious outlook."
- The company says its H1 rough diamond sales increased 12% Y/Y to $3.02B.
Tue, Jun. 21, 11:47 AM
- Anglo American Platinum (OTCPK:AGPPY) warns that its H1 net earnings likely will fall by at least 20% Y/Y due to lower metal prices and a stock adjustment in the prior year.
- The world's largest platinum producer, which is majority-owned by Anglo American (OTCPK:AAUKF, OTCPK:AAUKY), says it expects to report on July 25 at least a 20% drop in H1 basic earnings to 489M rand ($32.7M).
- Citigroup says the trading update "should not be a surprise" given that last year's H1 earnings were skewed by an additional 130K oz. of platinum inventory stemming from a production ramp-up after protracted labor strikes in 2014.
Mon, Jun. 13, 9:09 AM
- Anglo American's (OTCPK:AAUKF, OTCPK:AAUKY) De Beers unit says it will sell its 50% stake in Botswana's sole coal mine of the government as part of the parent company's plan to reduce its commodities portfolio.
- Anglo shut its Mmamabula coal fields in Botswana this year, in line with its plan to sell off certain assets but retain diamond producer De Beers, platinum and its copper units.
- The mine produces 3.2M metric tons/year of coal.
Tue, Jun. 7, 11:12 AM
- BHP Billiton (BHP -0.9%) and Glencore (OTCPK:GLCNF, OTCPK:GLNCY) are among final bidders for Anglo American’s (OTCPK:AAUKF, OTCPK:AAUKY) Australian metallurgical coal assets that may fetch ~$1.5B, Bloomberg reports.
- Yanzhou Coal Mining (YZC +2.9%), Warburg Pincus-backed Anemka Resources and a pairing of Apollo Global Management and Xcoal Energy & Resources also submitted final bids for the Moranbah and Grosvenor mines, according to the report.
- Anglo has said it wants to raise $3B-$4B from asset sales to help reduce debt and refocus itself as a miner of diamonds, platinum and copper.
Fri, May 27, 7:54 AM
- Anglo American (OTCPK:AAUKF, OTCPK:AAUKY) appoints of Bruce Cleaver as the new CEO of its De Beers diamond unit, effective July 1.
- He succeeds Philippe Mellier, who is stepping down after five years in the position.
- Cleaver was director of strategy and business development since 2015, climbing the ranks since joining the company in 2015; he served as co-acting CEO for a year prior to Mellier's appointment in 2011.
Fri, May 13, 10:41 AM
- A South African court OKs a class-action lawsuit against the country’s top gold mining companies by workers seeking damages for contracting lung diseases, Financial Times reports.
- The ruling clears the way for hundreds of thousands of former mine workers to pursue perhaps the biggest class action in South Africa’s history against companies including Anglo American (OTCPK:AAUKF, OTCPK:AAUKY), AngloGold Ashanti (NYSE:AU) and Sibanye Gold (NYSE:SBGL).
- In March, Anglo American and AngloGold agreed to pay up to $30M into a trust in a settlement with 4,400 separate silicosis claims; the new ruling made allows the legal action to include miners who have contracted tuberculosis, whose numbers could total up to 500K.
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.
Sector: Industrial Goods
Industry: Industrial Metals & Minerals
Country: United Kingdom