Anglo American: Disposal Ongoing With More Value To Come

Mare Evidence Lab
5.8K Followers

Summary

  • Anglo-American's restructuring is progressing rapidly. It is focusing on copper and iron ore and making significant divestments, including steelmaking coal and nickel.
  • The company aims to deleverage with a targeting net debt/EBITDA ratio of 0.5-1.0x. We also see the potential for a positive surprise from the De Beers divestment.
  • We believe Anglo American is expected to experience a valuation uplift as it transitions to a copper/iron ore player. Thus, our buy rating is confirmed.

Aerial view. Slag storage on the coast. A place for the storage of the slag. Large slag mountains. Slag pit

aerocaminua/iStock via Getty Images

Last week, Anglo American (OTCQX:AAUKF, OTCQX:NGLOY) released its 2024 results, which showed encouraging signs and robust operational performance. In our previous assessment, we emphasized that the company has an angle on a

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Buy-side hedge professionals conducting fundamental, income oriented, long term analysis across sectors globally in developed markets. Please shoot us a message or leave a comment to discuss ideas.DISCLOSURE: All of our articles are a matter of opinion, informed as they might be, and must be treated as such. We take no responsibility for your investments but wish you best of luck.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of AAUKF, NGLOY either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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