|Bid||1,899.80 x 0|
|Ask||1,900.20 x 0|
|Day's Range||1,888.00 - 1,922.80|
|52 Week Range||1,529.80 - 2,294.00|
|Beta (3Y Monthly)||0.77|
|PE Ratio (TTM)||5.94|
|Forward Dividend & Yield||0.90 (4.67%)|
|1y Target Est||N/A|
Moody's Investors Service ("Moody's") has assigned a Ba2 global scale rating to Prumo Participações e Investimentos S.A. (Prumo Par)'s ("PrumoPar") USD350 million senior secured notes due in December 2037. The Ba2 rating assigned to PrumoPar's senior secured notes reflects Moody's views of the Ferroport Logístical Comercial Exportadora S.A.'s ("Ferroport" or the "Project") revenue profile, as established by the long term (25 years) take or pay contract between Ferroport and Anglo Brazil, which has no volume risk associated with iron ore production or shipment. The priority of use of the Ferroport Project is assigned to Anglo American´s Minas-Rio iron ore project through a take-or-pay contract for receiving, storing, handling, loading and shipping iron ore with Anglo Brazil until 2039.
(Bloomberg) -- The latest sales data from De Beers reinforces why this is one of the worst years for the diamond industry in a long time.The Anglo American Plc subsidiary reported sales on Thursday that showed demand for rough diamonds is continuing to plunge as polishers and traders refuse to buy stones when they can’t make a profit.The mining company holds 10 sales events each year in Botswana, where its chosen buyers --- known in the industry as sightholders -- are given a box containing plastic bags filled with diamonds. In the past three sales, De Beers made less than $300 million, which is unprecedented in data going back to 2016.The crisis in the diamond industry stems from an oversupply of polished gems, which has depressed demand for rough stones. Much of the polishing and trading industry is based in India, where companies have been squeezed by tight bank financing and currency fluctuations.However, it’s unlikely that shoppers will see much change in jewelry prices at the retail level. Those prices tend not to fluctuate and reflect other costs, like marketing and labor.De Beers sold $295 million of diamonds in its eighth sale of the year, 39% less than a year earlier, the company said on Thursday.The mining company has tried to counter the weak market by giving buyers more room to maneuver. In normal times, sightholders have to accept the price and quantities of stones they’re offered.But with many sightholders now struggling, De Beers has allowed them to refuse half the stones in many of the diamond parcels, according to people familiar with the situation. They can also sell back some stones to De Beers on favorable terms.“As we approach what is traditionally a quieter time of year for the diamond industry during the Diwali holiday, we have again offered our customers flexibility during this sales cycle,” De Beers Chief Executive Officer Bruce Cleaver said Thursday.RBC Capital Markets expects profit will fall by about 40% this year at De Beers. The company’s decision to let buyers reject stones will help reduce the oversupply in the market, which should eventually allow prices to recover, RBC said.“If history is any guide, De Beers removing meaningful volumes from the market, as they did in 2008 and 2015, usually allows for the market to tighten substantially once conditions normalize,” said Tyler Broda, an analyst at RBC.(Adds chart in third paragraph.)To contact the reporter on this story: Thomas Biesheuvel in London at firstname.lastname@example.orgTo contact the editors responsible for this story: Lynn Thomasson at email@example.com, Dylan Griffiths, Gordon BellFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg) -- De Beers is continuing its policy of offering almost unprecedented flexibility to diamond buyers as the mining company works to fend off a slump in demand for the gems, according to people familiar with the situation.The Anglo American Plc unit extended the policy from its August sale to customers this week in Botswana, according to the people, who asked not to be identified as the matter is private. De Beers is allowing buyers to refuse half the stones in each parcel offered and also to sell back some diamonds to the company on favorable terms, the people said.A spokesman for De Beers declined to comment.De Beers sells its gems through 10 sales each year in Botswana’s capital, Gaborone, and the buyers -- known as sightholders -- generally have to accept the price and the quantities offered. The sightholders are given a black and yellow box containing plastic bags filled with stones, with the number of boxes and quality of diamonds depending on what the buyer and De Beers agreed to in an annual allocation.This year, buyers have grown increasingly frustrated with the cost of rough diamonds sold by De Beers as the prices of polished gems slumped. That’s led to wafer thin margins for their buyers and in some cases losses from the stones bought from De Beers and Russian rival Alrosa PJSC.The industry’s problems are centered around an oversupply of polished diamonds that have led to much steeper price drops than for rough stones. At the same time, tighter bank financing and currency fluctuations have hurt traders, cutters and polishers.De Beers has responded by letting sightholders lower their annual quotas and defer purchases. Chief Executive Officer Bruce Cleaver said in July that he accepts it’s not an easy time for clients, but the company sees no structural problems in the industry.As a result of De Beers’s concessions and weak demand, sales have tumbled. It sold just sold $280 million of diamonds at its August sale, 44% less than a year earlier. Its sales so far this year are about $1 billion lower than a year ago.In this week’s sale, De Beers let so-called buybacks increase to 20%, or in some cases 30%, the people said, meaning sightholders can remove diamonds in a box and De Beers will lower the price by a similar amount. The measure could allow buyers to increase profits since the rejected stones tend to offer the slimmest margins.To contact the reporter on this story: Thomas Biesheuvel in London at firstname.lastname@example.orgTo contact the editors responsible for this story: Lynn Thomasson at email@example.com, Stuart Wallace, Dylan GriffithsFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg) -- BHP Group has talked to Anglo American Plc Chief Executive Officer Mark Cutifani about running for the top job at the company, according to people familiar with the matter.BHP made the approaches earlier this year and again more recently, said the people, who asked not to be identified as the process is confidential. Cutifani rebuffed the company’s advances so far, they said. BHP favors an internal hire, but also wants to speak with external candidates, the people said.Spokesmen for Anglo and BHP declined to comment.Cutifani has said in previous interviews he planned to stay until Anglo finished its $5 billion Peruvian copper project Quellaveco, which may start production in 2022, by which time he will be in his mid-60s.There has been speculation for years about who might take the reins of BHP, the world’s biggest mining company, once Andrew Mackenzie steps down. Analysts have expected that Mackenzie, 62, could make an exit in 2020, by which time he would have held the job for seven years.BHP Chairman Ken MacKenzie, no relation to the CEO, has favored the idea of promoting an executive to the top job, which he views as less risky, according to the people. Current front-runners are Peter Beaven, the chief financial officer, Mike Henry, head of Australian operations and Daniel Malchuk, who runs the Americas business.Melbourne-based BHP is the biggest company in Australia and has long been seen as a national champion, but it hasn’t had an Australian-born boss since merging with Billiton Plc in 2001.Cutifani, who hails from Australia and has a background in mining engineering, has overseen one of the industry’s most successful turnaround stories in the past five years.He took the helm of Anglo in 2013 after the company lost billions in stock-market value from a disastrous foray into Brazilian iron ore. In 2015, Anglo faced down possible bankruptcy because of plunging metal prices and a heavy debt load.Cutifani steered the recovery by reducing Anglo’s debt burden, as well as cutting back on costs and employees. At one point, the company planned to sell half its assets, but later canceled the sales as prices for iron ore and copper started to roar back.Since the start of 2016, Anglo shares have risen sixfold, far outpacing other blue-chip mining shares. As profits recovered, Anglo has invested heavily in new projects, such as Quellaveco, while other mining companies have put a greater focus on returning cash to shareholders through dividends and share buybacks.BHP CEO Mackenzie, also appointed to his role in 2013, has worked to slash the size of BHP. He led the company through a $9 billion spin off of South32 in 2015 and a $10.5 billion exit from U.S. shale operations last year.To contact the reporters on this story: Thomas Biesheuvel in London at firstname.lastname@example.org;David Stringer in Melbourne at email@example.comTo contact the editors responsible for this story: Lynn Thomasson at firstname.lastname@example.org, Nicholas LarkinFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Anglo American plc (LON:AAL) shareholders might be concerned after seeing the share price drop 16% in the last...
Moody's Investors Service ("Moody's") has today upgraded the rating of DBCT Finance Pty Ltd.'s senior secured ratings to Baa3 from Ba1, and revised the outlook to stable from positive. "IMPORTANT NOTICE: MOODY'S RATINGS AND PUBLICATIONS ARE NOT INTENDED FOR USE BY RETAIL INVESTORS. DBCT is the financing affiliate of DBCT Management Pty Limited and DBCT Trust, which collectively have economic ownership of the Dalrymple Bay Coal Terminal through a long-term lease, comprising a 50-year initial and 49-year option period.
Anglo American PLC will spend some $30 million on community projects near its Quellaveco copper project in Peru three years earlier than planned after protests threatened to disrupt construction last week, a company manager said on Wednesday. Protesters in the southern region of Moquegua blocked a road to the Quellaveco deposit last week to highlight concerns about the $5 billion mine's environmental impacts and to push for more jobs for local residents. Eduardo Serpa, Anglo American's sustainability manager in Peru, said the protests did not halt construction of the mine, which is now 25% built and on track to start operating in 2022.
A Peruvian court ordered the arrest of the indigenous governor of a mineral-rich southern region after sentencing him to six years in prison on Wednesday for leading 2011 deadly protests against a Canadian open-pit silver project. Walter Aduviri, 39, the governor of Puno and an indigenous Aymara leader, was found guilty in absentia by a criminal court of disturbing public order, the office of the judiciary said on Twitter. Agustin Luque, the deputy governor of Puno, was expected to replace him in office.
Regular readers will know that we love our dividends at Simply Wall St, which is why it's exciting to see Anglo...
(Bloomberg Opinion) -- Indian billionaire Anil Agarwal may be calling off his charge at Anglo American Plc – but he, his adviser JPMorgan Chase & Co., and the hedge funds that financed him can at least console themselves with the profits they made. The only people who were exposed to any real risk in the adventure look to have been Anglo’s shareholders.Agarwal acquired a roughly 20% stake in 2017, shelling out barely any cash himself. The shares were acquired almost entirely from hedge funds who had borrowed them from other investors, with JPMorgan acting as broker. In return, the funds received an unusual bond issued by the billionaire’s investment vehicle, which would be repaid in the Anglo shares he had acquired. Notably, the structure limited the tycoon’s exposure to the ups and downs of Anglo’s share price.Both sides have done well out of this. First, Agarwal. He has had to pay roughly 420 million pounds ($521 million) of coupons on the bonds. If his Anglo shares went up a lot – as they did – the terms allowed him to keep nearly 10% of his holding on redemption, which was announced on Thursday. On Friday, he sold that residual holding for almost 520 million pounds.His 100 million-pound profit looks to be a 24% gain. But the internal rate of return will be much higher because he didn’t have to shell out of those coupons on day one.The hedge funds weren’t taking much risk either. Having borrowed Anglo shares and sold them to Agarwal, their profit came from the coupon. The Anglo shares received on redemption would – broadly – cover their short position in the miner’s stock. Like the billionaire, the hedge funds would have put down very little capital in the trade. Their main risk was that the coupons wouldn’t get paid. But it would have astonishing if Agarwal had defaulted.JPMorgan’s fees aren’t clear. But the huge amount of ancillary banking activity here – effectively the stage management of the whole operation – is a fee in itself.That leaves Anglo’s rank-and-file shareholders. The stock price has risen 76% since Agarwal popped up, so they seem well-rewarded. Some of them will have also received fees for lending out their stock. But of all the protagonists they were the only ones with direct exposure to the share price.What’s more, they have suffered a period of uncertainty when it was unclear what Agarwal, with his massive holding, really wanted. They will be relieved that the register is losing an unpredictable force. Their returns are the most deserved.To contact the author of this story: Chris Hughes at email@example.comTo contact the editor responsible for this story: Edward Evans at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Chris Hughes is a Bloomberg Opinion columnist covering deals. He previously worked for Reuters Breakingviews, as well as the Financial Times and the Independent newspaper.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
Indian billionaire Anil Agarwal, the biggest shareholder in mining company Anglo American, said on Thursday he was divesting the nearly 20% stake he has held since 2017. Agarwal began buying into Anglo American through a JP Morgan mandatory convertible bond in March 2017 and announced he was buying a second tranche in September 2017, taking his holding in the mining group to a total of 19.3%. On Thursday, Agarwal said in a statement the targeted returns had been achieved "even sooner than expected" and Anglo American's share price had nearly doubled since he began his investment.
Today we will run through one way of estimating the intrinsic value of Anglo American plc (LON:AAL) by projecting its...
Anglo American Plc said on Wednesday it would use only renewable sources to power its mine operations in Chile beginning in 2021, thanks to a deal the global miner signed with the Chilean subsidiary of Italian energy giant Enel . Renewable energy supplied by Enel Chile will power Anglo American's flagship Los Bronces copper mine, as well as its El Soldado and Chagres operations, the company said in a statement. Global miners are increasingly seeking innovations to boost efficiencies, lower costs and reduce use of water and non-renewable energy at mines.
(Bloomberg Opinion) -- When you’re in the business of buying and selling, timing is everything.That’s the costly lesson facing BHP Group, which is looking at options to divest its thermal coal assets according to a report Thursday by Thomas Biesheuvel of Bloomberg News that cited people familiar with the matter.Arch-rival Rio Tinto Group raised $2.7 billion selling mines in the Hunter Valley north of Sydney to Yancoal Australia Ltd., in a process that started in 2016. BHP could get far less: Macquarie Group Ltd. estimates $1.6 billion. That’s despite the fact that BHP’s Mount Arthur and Cerrejon mines, in the Hunter Valley and Colombia, post roughly the same Ebitda as as the ones Rio Tinto sold. BHP has had good reasons to keep operating these mines. They’ve produced several years of good earnings, for one. Mount Arthur has probably been even more profitable than it looks on paper, thanks to its ability to utilize tax losses that will now be running low.Still, it will be galling to sell at a discount when the long-term price for the high-energy coal mined in the Hunter Valley is now about a third higher than the $63 a metric ton level at the time Rio Tinto’s deal was announced.What’s changed? More or less everything.Back in 2016, coal was still the lowest-cost way of delivering new generation in most major markets. The slumping price of wind and solar generation since then has changed the game. Thermal coal will fall to 11% of U.S. generation by 2030 from the mid-20s at present, S&P Global Ratings wrote in a report Wednesday; outside of Spain and Germany, most European coal-fired plants will be retired by 2025.North Asian markets supplied by Mount Arthur look like an exception, with Japan, South Korea and China making up about 80% of Australia’s thermal coal exports. The first two countries are rare cases where falling renewables costs have failed to undercut the black stuff.Even there, though, the picture is dimming: Japan’s coal-fired capacity will go into to decline starting 2023, and actual demand should fall faster since its most recent plants use fuel more efficiently, according to a report this week by the Institute for Energy Economics and Financial Analysis, a research group opposed to fossil fuels. South Korea now has taxes on coal amounting to $60 a ton and imports will fall by half by 2040, according to the International Energy Agency.The group of potential buyers looks thin, too. Anglo American Plc, which has a one-third stake in Cerrejon alongside BHP and Glencore Plc, doesn’t seem in the mood for bulking up. The Japanese trading houses that have historically been major investors in Australia’s mining industry, meanwhile, have been quietly divesting strategic coal stakes for several years. What does that leave? Glencore, despite a promise in February to cap coal output, shouldn't be ignored. In that announcement, the commodities trader noted it may still buy out some minority stakes, which seems to anticipate a deal on Cerrejon. Glencore could also, in theory, get rid of its South African operations and replace them with Mount Arthur, keeping total output within limits and swapping in a more profitable mine. That would depend on finding a buyer for those South African mines, though, and there’s enough turmoil in that country’s coal and energy sector as it is.China is another possible buyer for Mount Arthur. The pit is adjacent to Yancoal’s existing operations, suggesting possible synergies. Still, 2019 isn’t the best year to be doing this. Since February, the country has been holding up shipments of Australian coal for ill-defined reasons that have a whiff of geopolitics about them. Any Chinese business looking for government approval to buy an Australian coal mine will have to reckon with that.Beyond that, there’s even the possibility that smaller local miners will have a go. In the old days, the idea that a relative minnow like Whitehaven Coal Ltd. could absorb a pit the size of Mount Arthur would have seemed absurd, but at Macquarie’s estimate of a $600 million price tag it’s not impossible. Based on BHP’s latest results, a buyer could pay off that sum in 18 months or so and run the mine for cash, assuming rehabilitation costs weren’t too high. Still, how times have changed. Back when Rio Tinto was hawking its coal assets, the company could plausibly argue that it still saw a bright future for the stuff. Nowadays, BHP is warning that it could be “phased out, potentially sooner than expected,” even as it’s trying to tempt buyers. Those M&A bankers are going to have their work cut out to get a good price.To contact the author of this story: David Fickling at email@example.comTo contact the editor responsible for this story: Matthew Brooker at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.David Fickling is a Bloomberg Opinion columnist covering commodities, as well as industrial and consumer companies. He has been a reporter for Bloomberg News, Dow Jones, the Wall Street Journal, the Financial Times and the Guardian.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.