|Bid||2,236.00 x 0|
|Ask||2,236.50 x 0|
|Day's Range||2,205.00 - 2,246.00|
|52 Week Range||1,433.80 - 2,294.00|
|Beta (3Y Monthly)||0.80|
|PE Ratio (TTM)||8.15|
|Earnings Date||Jul 25, 2019|
|Forward Dividend & Yield||0.77 (3.51%)|
|1y Target Est||24.50|
(Bloomberg) -- Diversified miner Anglo American Plc lowered its forecast for diamond production as demand from its customers slumped in the first half of the year.Anglo said its De Beers unit will now mine about 31 million carats this year compared with an earlier target of 31 million to 33 million carats. The company said it’s producing to match demand after “weaker trading conditions” this year.Key InsightsDiamond miners are facing a mini crisis as demand remains weak, while supply, especially for smaller and cheaper stones, is abundant. That’s put pressure on polished prices, crimping the margins for De Beers’s customers who cut, polish and trade the stones. De Beers has sold about $500 million less in diamonds so far this year than in 2018.It was better news for Anglo’s Minas Rio iron ore mine in Brazil, where the company said it now expects to produce between 19 million tons to 21 million tons, from an earlier goal of 18 million tons to 20 million tons. That was offset by a small cut to its Kumba Iron Ore Ltd. guidance after unscheduled plant maintenance.Banks including Macquarie are forecasting a big jump in Anglo’s first-half profit, predominantly driven by its iron ore business. Minas Rio was shuttered for much of last year after pipeline leaks, but has come back into production just in time to catch a surge in prices for the steelmaking ingredient.The company maintained its output targets for copper, coal and platinum.Get MoreKey figures here Statement here 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, Liezel Hill, Paul RichardsonFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(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 firstname.lastname@example.orgTo contact the editor responsible for this story: Matthew Brooker at email@example.comThis 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.
(Bloomberg) -- BHP Group is moving ahead with plans to exit thermal coal, according to people familiar with the matter, the latest move by the world’s biggest miners to retreat from the dirtiest fuel.BHP is looking at options to divest the business that includes assets in Australia and Colombia, said the people, who asked not to be identified as the development has not been made public. There’s no guarantee the company will go ahead with a sale, the people said.The decision demonstrates how growing climate-change pressure from investors and regulators is reshaping the future of extractive industries. Rival Rio Tinto Group has already removed all exposure to thermal coal and other producers including Anglo American Plc have been cutting output amid growing pressure from investors. Even Glencore Plc, the biggest shipper, has said it will look to limit production.BHP had already signaled cooling interest in thermal coal. Earlier this year, Chief Financial Officer Peter Beaven said the company had no appetite for growth in the commodity.While thermal coal makes up a fraction of BHP’s profits, it’s led to some investors saying they can’t hold the stock.Norway’s $1 trillion sovereign wealth fund last month got the green light to dump more than $13 billion in stocks linked to fossil fuels, including companies that mine more than 20 million tons of thermal coal, pushing Anglo American and BHP out of reach. Climate Action 100+, which has the backing of more than 300 investors managing $32 trillion, has already forced reforms from extractive giants such as BP Plc and Glencore.For BHP, thermal coal has become increasingly hard to justify. The company’s profits are driven by iron ore, oil, copper and coking coal (used to make steel) and thermal coal is likely to contribute just 1% of profit this year, according to Liberum Capital Markets.BHP’s move comes as its biggest rival, Rio, has become increasingly emboldened on climate change after offloading its last coal mines last year. The company has started promoting itself as the only major miner without exposure to fossil fuels.The move is also likely to put further pressure on Anglo, which, despite dramatically cutting its coal output, still mines almost 30 million tons a year.Still, exiting coal is unlikely to be easy for BHP. Its Colombian mine stake, which it owns with Anglo and Glencore, feeds the European market where demand is weak right now. Capacity could be cut in the country to balance an oversupplied market, Liberum estimated.Macquarie Group Ltd. and JPMorgan Chase & Co. are seen as frontrunners to run a sales process for the BHP assets, the people said.Macquarie said earlier this year that BHP’s Australian thermal coal business had a net present value of about $600 million and estimated the figure for its Cerrejon business in Colombia at about $1 billion.(Updates with charts and context.)\--With assistance from Dinesh Nair.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, Liezel HillFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Looking at Anglo American plc's (LON:AAL) earnings update in December 2018, the consensus outlook from analysts appear...
Attractive stocks have exceptional fundamentals. In the case of Anglo American plc (LON:AAL), there's is a company...
The goal of this article is to teach you how to use price to earnings ratios (P/E ratios). We'll look at Anglo...
Global miners BHP Group, Anglo American Plc and Glencore Plc revealed details on tailings dams, months after ethical investors sought the information following a second deadly dam disaster in Brazil. BHP, which operates 67 tailings facilities, said on Friday it has set up a tailings taskforce to further improve its focus on internal dam management and boost safety. The world's biggest miner added that a review undertaken to assess the management of tailings facilities following the 2015 Samarco disaster, which killed 19 people, had identified no immediate concerns regarding dam integrity.
We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly...
Anglo American Platinum is contemplating the sale of its Bokoni and Twickenham mines in South Africa, a move which would mostly complete the group's divestment strategy, its chief executive told Reuters. The precious metals producer has sold many of its mines as it pivots from the labour-intensive methods that have defined South African platinum mining to more mechanised operations, but struggled to dispose of loss-making Bokoni. Higher prices for the basket of precious metals sold by South African miners and a weaker rand currency have improved operating conditions for companies struggling to make profits.
Many investors are still learning about the various metrics that can be useful when analysing a stock. This article is...
By Muvija M and Shashwat Awasthi (Reuters) - UK blue-chip stocks rose slightly on Friday, recouping the session's losses as mining stocks gave investors something to cheer about at the end of a largely ...
The world's biggest diversified miners have yet to see their share prices reflect their role as providers of the minerals needed for a shift to a low-carbon economy. Mining companies provide minerals such as cobalt used in electric vehicle batteries and copper for increased electrification, and the sector's balance sheets are in rude health. Reminders of the dangers include a disaster in Brazil at a Vale tailings dam in January that killed an estimated 300 people, and a U.S. corruption investigation into Glencore, announced in April.
European shares rose on Friday, propped up by bank stocks amid a slew of corporate earnings reports, as the regional index licked its wounds a day after its worst loss in six weeks. The pan-European STOXX 600 index was up 0.4 percent at 0903 GMT. "Today you see partly a correction from the yesterday's move and hopes about a good U.S. jobs report," said Teewe Mevissen, senior macro strategist at Rabobank, referring to U.S. non-farm payrolls data for April due later on Friday.
European shares ticked higher on Friday, helped by gains among banks and Germany's Adidas, one day after the regional index suffered its worst loss in six weeks. Adidas led the benchmark as shares in the sportswear maker rose about 7 percent after it reported a rise in quarterly net profit thanks to high-margin ecommerce even as overall sales growth slowed. Bank stocks rose half a percent, supported by a 1.8 percent rise in the London-listed shares of HSBC Holdings PLC after the lender beat quarterly profit estimates, bolstered by a surge in income from its core Asian business.
Mined diamonds are less carbon-intensive than man-made, but their producers should use more green energy, according to a study commissioned by the natural diamond industry, highlighting tensions between the mined and lab-grown sectors. The U.S. Federal Trade Commission, which investigates allegations of deceptive advertising, sent warning letters to eight lab-grown diamond companies at the beginning of April. Mined diamonds also have a high environmental impact, displacing thousands of tonnes of rock, although the analysis carried out by Trucost, part of S&P Global, for the Diamond Producers Association (DPA) found the carbon intensity of natural diamonds was lower.
Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card! In 2013 Mark Cutifani was appointed CEO of Anglo American plc (LON:AAL). First, this artic...
Anglo American said on Thursday technical problems dragged first-quarter production down 6 percent, but copper output rose, as did that of iron ore from its Minas-Rio mine in Brazil, which ramped up operations after a leak last year. The stock extended losses from the prior session, when JPMorgan warned of a $900 million cut to 2020 core profit if Minas-Rio failed to obtain a Brazilian tailings permit by the end of the year. JPMorgan downgraded the stock to "neutral" from "overweight", saying the share no longer looked cheap.
Anglo American Plc said on Thursday copper production rose in the first quarter, while output from Minas-Rio iron ore mine in Brazil soared as it ramped it up after resuming operations late last year. Copper output climbed 4 percent to 161,100 tonnes for the three months ended March 31, the diversified miner with an over century-old history said. Minas-Rio iron ore production jumped 61 percent.
Copper output climbed 4 percent to 161,100 tonnes for the three months ended March 31, the diversified miner with an over century-old history said. Minas-Rio iron ore production jumped 61 percent. A renewed demand for copper, a metal that has a major role to play in automobiles and related industries, partly aided Anglo American in outperforming its major peers last year.
The FTSE 100 index lost 0.7 percent on its worst day in a month, but the midcaps gained 0.4 percent with gold miner Centamin leading gains after a strong quarterly update. The blue chips, which had touched a near seven-month high in the last session, lagged European markets where strong earnings from the likes of SAP and Credit Suisse kept a lid on losses. Bellwethers Shell and BP dropped from multi-month highs as crude prices retreated after having jumped to their 2019 highs this week as the United States pushed to tighten sanctions against Iran.