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.
Monday, Apr 1410:59 AM
Monday, Apr 1410:59 AM| Comment!
- Platinum prices are surging, stoked by worries over supplies due to the crippling mine worker strike in South Africa and the potential for increased sanctions against Russia.
- Platinum mining in South Africa has plunged by more than a third since workers went on strike in January to demand higher pay; mining companies had built up their inventories before the strike, but stockpiles have dwindled as the strike reaches its 11th week.
- South Africa is the source of roughly 80% of the world's platinum, while Russia is the second largest producer; platinum is used primarily in catalytic converters of diesel-burning vehicles, which are common in Europe.
- Platinum producers: AGPPY, AGPPF, AAUKY, AAUKF, IMPUY, IMPUF, LNMIF, LNMIY.
- ETFs: PPLT, PTM, PGM
Thursday, Apr 32:40 AM
Thursday, Apr 32:40 AM| 1 Comment
- A 7.8 magnitude earthquake has struck northern Chile just a day after one of 8.2.
- However, although Tsunami warnings were issued on the coast, they have now been cancelled, and there were no initial reports of casualties or serious damage from the second quake.
- Glencore Xstrata's (GLCNF, GLNCY) and Anglo American's (AAUKF, AAUKY) Collahausi mine said it is continuing the "process of normalization" without problems following an evacuation of workers because of Tuesday's quake.
- Teck Resources (TCK) and Southern Copper (SCCO) also have mining operations in Chile; the latter's were continuing normally following the first quake.
- ETFs: JJC, CPER, CUPM
Wednesday, Apr 23:19 PM
Wednesday, Apr 23:19 PM| 1 Comment
- Normal operations are expected to resume by day's end at Anglo American (AAUKF, AAUKY) and Glencore's (GLCNF, GLNCY) Collahuasi copper mine in Chile after a major earthquake forced a production shutdown.
- Collahuasi produced 445K metric tons of copper content last year and accounts for nearly 6% of Chile's overall output.
- The rest of Anglo American's operations in Chile, mostly located further south, weren't affected by the earthquake.
- Southern Copper (SCCO) said last night its mining operations in the country continued normally.
- ETFs: JJC, CPER, CUPM
Wednesday, Apr 22:56 AM
Wednesday, Apr 22:56 AM| 2 Comments
- A massive 8.2 magnitude earthquake has struck off the northwest coast of Chile, causing a 2 meter high tsunami, killing at least five people and leading to much damage.
- While hundreds of thousands of people have been evacuated from the affected areas, mining operations in the region appear to be relatively unaffected.
- Companies with interests in the area include Anglo American (AAUKF) and Glencore Xstrata (GLNCY), which operate the huge Collahuasi mine near the border with Bolivia. Workers were evacuated, but the mine doesn't seem to have been damaged. Teck Resources (TCK) and Codelco, the world's biggest copper producer, also own interests in the region.
- Copper futures jumped following the earthquake but then fell back, and are +0.3% to $3.048 a pound.
Tuesday, Mar 2510:15 AM
Tuesday, Mar 2510:15 AM| Comment!
- Anglo American (AAUKF, AAUKY) says it is restarting operations at its Los Bronces copper mine in Chile following violent protests earlier this week that had caused it to halt operations.
- Los Bronces, in the Andes mountains, produced more than 416K tons of copper last year, ~7% of Chile's overall output; Anglo says its other mines in Chile are operating normally.
- Meanwhile, platinum producers including Amplats (AGPPY, AGPPF) say a strike now in its ninth week at their South African mines is causing irreparable damage to the sector and local economy.
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.
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.