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.
Friday, Feb 144:17 AM
Friday, Feb 144:17 AM| Comment!
- Anglo American (AAUKF) made its second consecutive net loss in 2014 after the mining company wrote down wrote down $1.9B in the value of assets as commodity demand continued to be soft.
- Still, net losses narrowed to $961M from $1.47B a year earlier but badly missed consensus for a profit of $2.01B.
- Underlying profit fell 7% to $2.7B, above analyst forecasts of $2.38B.
- Total revenue +1% to $33.06B.
- Net debt rose to $10.7B from $8.5B and could reach $15B by the end of 2014.
- Despite the loss, Anglo American maintained its dividend at $0.85 a share. (PR)
Wednesday, Jan 2211:58 AM
Wednesday, Jan 2211:58 AM| Comment!
- Anglo American Platinum (AGPPY) returned to a profit in 2013 as the platinum sector tentatively picked up after enduring a wave of violent strikes, but the recovery risks being jeopardized by new unrest as miners prepare to lay down tools tomorrow to demand a doubling of their basic salary
- Amplats, majority-owned by Anglo American (AAUKY, AAUKF), expects EPS to increase to 480-590 cents from a loss the year before, amid higher sales of platinum and a favorable rand/dollar exchange rate.
- Amplats joins Impala (IMPUY, IMPUF) and Lonmin (LNMIF, LNMIY) in warning of the potential damage of a prolonged strike, saying the miners' demands are “unaffordable and unrealistic."
- ETFs: PPLT, PTM, PGM.
Thursday, Jan 162:08 PM
Thursday, Jan 162:08 PM| 1 Comment
- “We would rather be too early than too late," Citi analysts say on going bullish on the global mining sector for the first time in three years.
- Yes, Citi is concerned about the potential for long-term structural demand for commodities in China and the potential of a seasonal slowdown in Q1, but the firm foresees better bottom-up fundamentals, notably from big diversified miners such as top picks are BHP Billiton (BHP +2.6%), Rio Tinto (RIO +3.6%) and Glencore (GLCNF, GLNCY).
- The firm expects a flat commodity-price environment ahead and a reduction in volatility, improving U.S. and European growth that will help boost commodities, and weakening commodity currencies from major exporters such Australia, New Zealand and South Africa that will boost miners.
- Earnings momentum has become positive too, as miners are cutting costs, improving balance sheets and aligning with shareholders’ interests.
- Citi still doesn't like gold and base-metal stocks; its least favorite big-cap miner is Anglo American (AAUKF, AAUKY).
Friday, Dec 132013, 2:52 PM
Friday, Dec 132013, 2:52 PM| 4 Comments
- Northern Dynasty Minerals (NAK +11.6%) exercises its right to acquire 100% of Anglo American's (AAUKF, AAUKY) interest in the Pebble copper/gold/molybdenum project in Alaska.
- NAK, which has partnered with Anglo for six years, will now go it alone and have the full benefit of the cash spent on the project - $556M so far, NAK says.
- NAK says a final decision on permit filing for the controversial project would be made in 2014.
Thursday, Dec 122013, 5:10 PM
Thursday, Dec 122013, 5:10 PM| Comment!
- Anglo American (AAUKF, AAUKY) says it has secured two large sales agreements for the majority of the forecast 26.5M metric tons of iron ore to be produced from Brazil's Minas Rio project, and says the oft-delayed project remains on course to start commercial production by the end of next year.
- Minas Rio should deliver a return on capital employed of 7% or more in 2016, a figure that will continue rise as the project ramps up production, Anglo CFO Rene Medori says at the company's investor day.
- Also, Anglo says it is working on a new mine plan that is expected to increase annual copper production at its Quellaveco copper project in Peru by ~25% to 281K tons/year, vs. earlier projections for the mine to produce 225K tons/year during a mine life of more than 30 years.
Thursday, Dec 122013, 10:39 AM
Thursday, Dec 122013, 10:39 AM| 1 Comment
- Anglo American (AAUKF, AAUKY) CEO Mark Cutifani reaffirms his turnaround plan to bolster the miner's return on equity employed to more than 15% by 2016 from 11% in H1 of this year but expects to face headwinds next year.
- "We have identified ~85% of the incremental EBIT necessary to achieve the level of return we expect from the business, and we are working on the areas where we see additional potential," Cutifani says.
- Anglo has underperformed its diversified mining peers over the past six years; since 2007, it has more than doubled its total capital employed but its rate of return has been cut by more than half.
Friday, Dec 62013, 3:30 AM
Friday, Dec 62013, 3:30 AM| 5 Comments
- South African markets are calm following the passing of Nelson Mandela, who was instrumental in the country's peaceful transition away from apartheid.
- One of Mandela's biggest achievements was enacting policies that paved the way for GDP to grow for 15 years, the longest period of expansion in South Africa's history. These policies included embracing the free market, cutting costs and attracting foreign investment.
- The question is now that Mandela has passed on, whether South Africa will feel more free to abandon the policies and conciliation that he espoused. For example, the ANC's youth wing wants to nationalize banks and mines, policies that Mandela ditched in 1994.
- There are also fears that Mandela's death could leave South Africa open to renewed racial and social tensions, such as those seen in the mine strikes over the past year or so.
- The economy is already not in a good way: unemployment is 24.7% and there is a large inequality in earnings between blacks and whites.
- The FTSE/JSE Top 40 is +0.3%, the South African 10-year bond yield is -2.5 bps at 8.16%, and the USD-ZAR is +0.2% at 10.4732 rand.
- Tickers: HMY, AGPPY, AGPPF, AAUKY, AAUKF, SSL, GFI, ABX, AU, SBGGF.
- ETF: EZA
Wednesday, Nov 202013, 6:50 PM
Wednesday, Nov 202013, 6:50 PM| 28 Comments
- Coal (KOL) may become the new tobacco if activist investors have their way; growing numbers of them, concerned about greenhouse gas emissions, are calling to divest holdings in companies that mine and burn coal.
- The U.K. today joined a U.S. commitment to minimize funding of foreign coal-fired power stations and says it will seek wider support for the pledge from other nations and development banks.
- What galls the activists: Global demand for coal is not in retreat. In 2011, coal was used to generate 30.3% of the world’s primary energy, the highest level since 1969, and the share slipped only to 29.9% last year.
- Like tobacco companies, coal producers may move to paying high dividends to attract investors amid an uncertain longer term future for the fuel.
- BTU, ACI, BHP, RIO, GLCNF, GLNCY, AAUKF, AAUKY, PCXCQ.
Friday, Oct 182013, 7:58 AM
Friday, Oct 182013, 7:58 AM| Comment!
- Anglo American (AAUKY.PK, AAUKF.PK) reports mixed Q3 production results, with copper, diamond and nickel output up but iron ore down and platinum output flat Y/Y.
- Q3 copper production rose 32% Y/Y and 13% Q/Q to a quarterly record ~207K metric tons, as output at its Collahuasi mine in Chile more than doubled; output and revenue at Collahuasi, a venture with Glencore Xstrata, has been plagued by lower ore grades, extreme weather and accidents.
- However, iron ore output fell 24% Y/Y and 16% Q/Q to 9.5M metric tons, as weaker production at unit Kumba Iron Ore’s Sishen mine was only partly offset by increased output at Kolomela.
Friday, Oct 42013, 11:29 AM
Friday, Oct 42013, 11:29 AM| 2 Comments
- Vale (VALE -1%) is tagged with a Sell rating and $13 price target at Barclays, which cites overexposure to iron ore prices.
- 92% of Vale’s earnings, or 77% of its net present value, comes from iron ore; a 10% change in the iron ore price would reduce Vale’s NPV by 49% and 2014 earnings by 32%, according to Barclays.
- The firm's price profile assumes iron ore $105/ton in 2014 retreating to $90/ton by 2016, resulting in Vale’s earnings falling 51% by 2016 vs. 2013.
- Barclays ranks Vale near the bottom of global peers BHP, RIO and Anglo American (AAUKY.PK, AAUKF.PK) on all key metrics including production growth, free cash flow generation, earnings growth, gearing, return on equity and return on invested capital.
Friday, Sep 272013, 11:07 AM
Friday, Sep 272013, 11:07 AM| 1 Comment
- Fewer than one in five workers showed up today at Amplats' (AGPPY.PK, AGPPF.PK) South African platinum mines around the city of Rustenburg, in protest against planned job cuts.
- Amplats - part of global mining group Anglo American (AAUKY.PK, AAUKF.PK) and the world's No. 1 producer of the precious metal - said last month it would cut 4,800 jobs.
- Unlike work stoppages since that declaration, Friday's action is legal and in keeping with a change of tactics by the mineworkers union, which was behind a wave of wildcat strikes that rocked South Africa's gold and platinum sectors last year and drove Amplats into the red.
Friday, Sep 272013, 9:08 AM
Friday, Sep 272013, 9:08 AM| Comment!
- ArcelorMittal (MT) and Kumba Iron Ore (KIROY.PK) say they are in talks over a potential new ore supply agreement, as the companies try to resolve a rights and pricing dispute spanning more than three years.
- Kumba, a unit of Anglo American (AAUKF.PK, AAUKY.PK), had suspended an agreement with MT in 2010 under which it sold South African iron ore at a discounted price of production costs; the deal was in place because MT had a mining right in Kumba's Sishen mine that lapsed.
- MT -1.7% premarket.
Wednesday, Sep 252013, 10:28 AM
Wednesday, Sep 252013, 10:28 AM| Comment!
- Anglo American (AAUKY.PK, AAUKF.PK) is revising a deal to sell its Amapa iron ore operation in Brazil to Zamin Ferrous following a landslide that destroyed key infrastructure and left it unable to export from the port serving the mine.
- Anglo will now sell 100% of the operation to Zamin for an initial $136M plus a deferred conditional $130M over five years tied to the iron ore price, after agreeing earlier this year to sell a 70% stake to Zamin for an undisclosed sum.
- The announced sale price is a fraction of what Anglo paid for control of Amapa when it bought the operation five years ago as part of the $6.65B Minas Rio acquisition from billionaire Eike Batista.
Wednesday, Sep 182013, 11:35 AM
Wednesday, Sep 182013, 11:35 AM| 4 Comments
- Alaska officials and Northern Dynasty Minerals (NAK -1%) are putting the best face on the future of the Pebble copper and gold project even without its heavyweight financial backer, Anglo American (AAUKF.PK, AAUKY.PK), which pulled out on Monday.
- Pebble is "a huge, valuable asset" for Alaska, NAK CEO Ron Thiessen says, adding that he remains confident the mine will be built within the next 10 years; " I would suspect there are companies out there that are still prepared to do a transaction with us on Pebble."
- NAK shares have plunged by a third since the Monday announcement.
Monday, Sep 162013, 11:21 AM
Monday, Sep 162013, 11:21 AM| Comment!
- Shares of Northern Dynasty Minerals (NAK -37.8%) are crushed after Anglo American (AAUKF.PK, AAUKY.PK) withdrew from a partnership to develop the Pebble copper project in Alaska.
- CEO Ron Thiessen says NAK plans to begin the permitting application process for the project by the end of this year, despite the pullout; he says Anglo's decision was due to its desire to re-prioritize its project pipeline rather than any concern about the project.
- The Pebble deposit is estimated to hold 81B lbs. (37M metric tons) of copper, 5.6B lbs. of molybdenum and 107M oz. of gold.
Monday, Sep 162013, 7:58 AM
Monday, Sep 162013, 7:58 AM| Comment!
- Anglo American (AAUKF.PK, AAUKY.PK) says it is withdrawing from the Pebble copper project in Alaska, a joint venture with Northern Dynasty Minerals (NAK).
- Mark Cutifani, who took charge of Anglo this year following the resignation of Cynthia O’Carroll, wants to purge the miner's pipeline of marginal projects in favor of high-value, low-risk projects.
- Anglo had spent $540M up to the end of June on Pebble, according to NAK, which says it will hold on to the project.
- Anglo says it will take a $300M impairment charge on the withdrawal.
Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.