|Bid||21.97 x 500000|
|Ask||22.59 x 500000|
|Day's Range||21.74 - 22.88|
|52 Week Range||18.00 - 26.60|
|Beta (5Y Monthly)||1.21|
|PE Ratio (TTM)||7.88|
|Forward Dividend & Yield||0.99 (4.33%)|
|Ex-Dividend Date||Mar 12, 2020|
|1y Target Est||N/A|
(Bloomberg) -- When Natascha Viljoen takes the helm of Anglo American Platinum Ltd. in April, she will find a “fierce crocodile” in her in-tray.In the local Tswana language, that’s Mogalakwena, the largest palladium mine outside Russia. The metal’s surge to a fresh record is turbo-charging the giant open pit’s cash-generating powers, and the new chief executive officer, announced on Thursday, must decide whether to expand further.Mogalakwena -- half way along the road from South Africa’s capital to the Zimbabwe border -- churned out 9.9 billion rand ($655 million) in cash last year. That’s partly because, unlike other mines in the country, it produces more palladium than platinum.“This is by far the most valuable mine in the platinum-mining industry,” outgoing CEO Chris Griffith said in an interview this week in Johannesburg. “It’s the most fantastic asset with a 100-year life.”During his seven years at the helm, Griffith has ramped up output at Mogalakwena, helping the Anglo American Plc unit to double its profit last year. The company is enjoying a further 40% jump in the palladium price since December and expects the supply deficit for the metal to widen to 1.9 million ounces in 2020.When Griffith steps down in April, his successor must decide whether to expand the Limpopo mine’s output of platinum-group metals by another 500,000 ounces. The outgoing CEO said that process won’t be rushed, as the company weighs options for an underground operation against another open pit.Amplats could also build a third concentrator plant or upgrade one of the existing plants at the operation to ramp up output by 2024, Griffith said. Final studies are due to be completed by the middle of next year.“This is a long game and we must do the right thing and not be chased by prices,” Griffith said. “Mogalakwena doesn’t need these prices to incentivize a new project, we don’t have to rush into anything.”(Updates with CEO comments on output options in penultimate paragraph)To contact the reporter on this story: Felix Njini in Johannesburg at firstname.lastname@example.orgTo contact the editors responsible for this story: Lynn Thomasson at email@example.com, Nicholas LarkinFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
The following are the top stories on the business pages of British newspapers. - Anglo American has insisted that its 405 million pound ($521.68 million) bid for Sirius Minerals is "fair and reasonable" after hedge fund Odey Asset Management joined small shareholders in pushing for a higher offer. - Royal Dutch Shell will not "get into an arms race" with BP over carbon targets, a senior executive has said, in a sign that Europe's biggest oil group will not rush to match its rival's "net zero" pledge.
As bushfires and floods fuel public concerns in Australia about global warming, the country's powerful mining lobby is facing increasing pressure from investors to drop support for new coal mines, according to a dozen interviews with shareholders in global mining companies. Nearly a third of shareholders in BHP Group Ltd , the world's biggest miner, last year voted for resolutions to axe its membership in industry groups advocating policies counter to the Paris climate accord, which aims to limit global warming to "well below" 2 degrees Celsius.
(Bloomberg) -- Gold reached a seven-year high as concern over the economic impact of the coronavirus boosted demand for haven assets and fueled speculation that the Federal Reserve will ease monetary policy before year-end.Prices extended gains above $1,600 an ounce to the highest since February 2013. Copper headed for a third straight decline, while the dollar strengthened and U.S. equities fell after a jump in confirmed infections in South Korea and Japan.Bullion has climbed almost 7% this year amid mounting concern over the economic impact of the virus. While minutes from the Fed’s last meeting indicated the central bank could leave rates unchanged for many months, futures traders maintained expectations for at least one cut over 2020. Low rates are a boon for gold, which doesn’t offer interest.“The minutes suggest that the bar to ease policy is clearly lower than to lift rates,” Colin Hamilton, an analyst at BMO Capital Markets, said in an emailed note Thursday. “In particular, they back up Powell’s recent comment that policymakers would not tolerate continued below-target inflation. This commentary was viewed as supportive gold.”Read more: Doubts Re-Emerge Over China Data; Cases Top 75,700: Virus UpdateSpot gold advanced for a third straight day, rising as much as 0.7% to $1,623.73 an ounce. Holdings in global exchange-traded funds backed by bullion have risen to a fresh record, and are on course for a sixth weekly expansion, the longest streak since November. Futures settled 0.5% higher at 1:30 p.m. on the Comex in New York.“It looks like a self-fulfilling prophecy,” said ABN Amro Bank NV strategist Georgette Boele. As prices broke out, the move has attracted more investors into gold, she said.Gold could reach $1,650 over the coming weeks, according to UBS Group AG’s Global Wealth Management unit.“With U.S. equity valuations elevated, any further upsets could see another bout of volatility, a further rally in government bonds and a higher gold price,” analysts Wayne Gordon and Giovanni Staunovo said in a note.Copper prices, meanwhile, fell 0.7% in London and closed at the lowest level in almost two weeks, and zinc hit the lowest level since July 2016. Chinese officials again changed the way the nation officially reports the number of infections and asked firms not to resume work before March 11. That caused fresh worries alongside new fatalities outside of China, weakening demand for industrial metals.“Hubei’s announcement that firms will remain closed until March 10th is reviving concerns that the follow-through impact may be more prolonged than anticipated,” TD Bank analysts including Bart Melek said in a note to clients.‘What Goes Up’In other precious metals, silver, platinum and palladium declined in the spot market. All four major precious metals have risen this week.Palladium, used in vehicle pollution-control devices, has been supported by concerns over a widening global deficit, and a pledge by the Chinese government to stabilize car demand.Spot palladium has risen about 39% this year. The gains have still been eclipsed by those of rhodium, a less-liquid precious metal from the same group that expanded its year-to-date advance on Thursday to 110%.Read more: Why Palladium Is Suddenly a More Precious MetalBoth rhodium and palladium are advancing on tight supplies and as demand from the car industry remains strong, Anglo American Plc said Thursday.Still, the coronavirus is threatening Chinese auto sales with factories across the nation suspended and the global supply chain disrupted. That means prices have room to retreat in the short-term, Anglo’s Chief Executive Officer Mark Cutifani told investors.“What goes up quickly can come down twice as quick,” he said.\--With assistance from Martin Ritchie.To contact the reporters on this story: Ranjeetha Pakiam in Singapore at firstname.lastname@example.org;Elena Mazneva in London at email@example.com;Justina Vasquez in New York at firstname.lastname@example.orgTo contact the editors responsible for this story: Lynn Thomasson at email@example.com, Pratish Narayanan, Luzi Ann JavierFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg) -- After spending almost $1 billion in buying back shares, Anglo American Plc is changing directions and leaning fully into growth.The century-old mining company, which announced full-year earnings on Thursday, opted not to allocate more money to share buybacks. That’ll free up money for Anglo to spend on a $3 billion U.K. potash project and a $5 billion copper mine in Peru with help from a partner.While other mining companies have focused on giving billions back to shareholders and shied away from blockbuster acquisitions, Anglo is charting out a different path. The company has staked its future on building mining operations around the world in a broad spectrum of different materials, rather than focusing on a single product.Chief Financial Officer Stephen Pearce said that while buybacks are always considered, the spending on the company’s new copper mine means shareholders will likely have to settle for dividends.Coal WritedownLike for other miners, coal is a problem for Anglo. It wrote down the value of its coal assets by about $900 million -- echoing a similar move by Glencore Plc this week. Climate activism and plunging prices have made coal an unattractive business and Anglo wants to eventually sell its operations.More broadly, Anglo’s natural resources portfolio has delivered mixed results. The company reaped profits from selling iron ore and precious metals, like platinum and palladium. But diamonds and coal, which have seen prices plunge, took a toll on earnings.De Beers reported its worst results in years and profits were cut in half. At the same time, earnings almost doubled at its platinum unit, fueled by a surge in palladium and rhodium prices. Supply shocks in Brazil and Australia also helped Anglo’s iron ore unit.Anglo also said it expects the coronavirus to have less of an impact because the company isn’t as reliant on China compared with its competitors. There could be some hit to iron ore and diamond demand, said Anglo Chief Executive Officer Mark Cutifani.The shares added 1.7% percent to 2,122 pence as of 8:15 a.m. in London.Other HighlightsFull-year adjusted EPS was $2.75 a share, in-line with the estimate of $2.79 a share.Ebitda rose 9% to $10 billion.Net debt jumped to $4.6 billion.(Updates with share price.)To contact the reporter on this story: Thomas Biesheuvel in London at firstname.lastname@example.orgTo contact the editor responsible for this story: Lynn Thomasson at email@example.comFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg Opinion) -- Thermal coal has become a byword for the resource industry’s climate crimes. From BlackRock Inc. down, fund managers are reluctant to touch a mineral that releases more carbon dioxide than any other energy source. Large miners, from BHP Group to Anglo American Plc, are trying to dump it. Coal is also — for now at least — profitable.It’s the unpalatable truth that explains why Glencore Plc, the world’s largest exporter of the black stuff, sticks with a dying fuel. Morals aside, the details suggest Chief Executive Officer Ivan Glasenberg and his team may well be right.Tuesday’s full-year earnings from the trader and miner bore more than a few smudges. Lower prices for commodities like copper and cobalt took a heavy toll. Coal didn’t help, with the price of benchmark Newcastle coal down by over a third in 2019. Colombia, where Glencore’s reserves will run out in the next decade or so, accounted for nearly $1 billion of a $2.8 billion impairment that dragged the company to its first net loss since 2015. Those mines supply an Atlantic market where demand has all but dried up, thanks to mild weather, high European carbon prices and cheap gas.But that doesn’t mean the end is nigh.Coal is obviously not the energy source of the future. That much is apparent even to those who agree with the International Energy Agency’s “stated policy” scenario, which sees global coal demand roughly flat out to 2040. Glencore veterans like Glasenberg, who won his spurs trading the mineral, and some of his potential successors can be counted among them.Yet it’s also clear from 2019’s numbers that there will be short-term opportunities. Asian demand is holding and global supply is starting to come under pressure, as diversified miners divest and financing costs rise. Last year, global seaborne thermal coal demand was up 1.5%, despite an 18% drop in the market that feeds Europe. That’s because in absolute terms, the European drop adds up to 30 million metric tons — more than covered by Asia’s rise of less than 6%, or 47 million tons. Consider that over the past 20 years, Asia has accounted for some 90% of all coal-fired plants built globally. That suggests demand will hold enough to support reduced supply, even if by the 2030s more than 80% of the world’s appetite will come from Vietnam, India and their neighbors. Plans from homegrown suppliers like Coal India Ltd. will almost certainly fail to satiate domestic demand.Granted, sticking with thermal coal isn’t a good way to attract investors guided by environmental, social and governance criteria. Yet that’s not, as yet, a justification to sell, either. Under the current investment criteria at BlackRock, for example, Glencore just needs to keep coal contributing less than a quarter of its revenue. Last year, it amounted to about 4% of the top line, even if the contribution was closer to a quarter in terms of earnings before interest, tax, depreciation and amortization. Thanks to depleting assets in Colombia, Glencore can even hit its target of shrinking carbon emissions produced by its supply chain, so-called Scope 3, by 30% by 2035, without much effort.Glencore’s coal Ebitda margins fell sharply last year but remain at a decent 36%, meaning the commodity is still one of its most profitable segments. The fuel effectively funds greener ventures, and keeps trading activities ticking over. That’s a good enough reason not to spin off the business, which may in any event do little to help clear other valuation-hampering questions, over leadership and a pending U.S. Department of Justice investigation into possible money-laundering and corruption.Staying put means Glencore could also snap up some bargains, with BHP selling its huge Mount Arthur mine in Australia, not far from its rival’s Hunter Valley assets. Glasenberg has capped coal production at 150 million metric tons — an expedient decision that helps support prices — but there is no reason not to swap Colombian assets for Asia-facing Australia.The risk of meddling with a moribund commodity, even when you account for much of the world’s seaborne supply, is that you can end up with worthless assets. Unfortunately for a warming climate, that looks a distant enough prospect for the world’s largest commodities trader. To contact the author of this story: Clara Ferreira Marques 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 Bloomberg LP and its owners.Clara Ferreira Marques is a Bloomberg Opinion columnist covering commodities and environmental, social and governance issues. Previously, she was an associate editor for Reuters Breakingviews, and editor and correspondent for Reuters in Singapore, India, the U.K., Italy and Russia.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg) -- Sign up to our Next Africa newsletter and follow Bloomberg Africa on TwitterAnglo American Platinum Ltd. said Chief Executive Officer Chris Griffith will step down, as it reported profit that more than doubled from a year earlier and boosted shareholder returns with a special dividend.Griffith, who spent seven years at the helm of the Anglo American Plc unit, leaves the company in a dramatically different state from when he joined. In 2012, Amplats, as the producer is known, was struggling with sliding profits and swelling debt as metals prices floundered. Four days after his appointment was announced, the company suspended its dividend.Since then, the miner sold and mothballed less profitable operations to focus on lower-cost mines, restarted dividend payments two years ago and ended 2019 with net cash of 17.3 billion rand ($1.2 billion). In addition to operational improvements, Amplats is also benefiting from a surge in palladium and rhodium prices.Read More: Palladium Gap Means Surge Is Far From Over, Amplats CEO SaysThe company, which reported annual results Monday, declared a second-half dividend of 41.60 rand a share, including a 25-rand special dividend. The full-year payout was more than four times higher than a year earlier.Amplats will likely maintain its dividend payout ratio of 40% of so-called headline earnings, Finance Director Craig Miller said.The company’s shares rose 3.8% by 2:11 p.m. in Johannesburg, bringing their gain over the past 12 months to 90%.Griffith will step down at the company’s annual general meeting in April to pursue other career opportunities, the company said. His successor, who is expected to be an internal candidate from within the Anglo American group, will be announced in the near future, Amplats said.“We have got a hugely resilient business now,” Griffith told reporters on a call Monday. “We have a much more financial astute company and of course the cherry on the top has been able to return dividends to shareholders again.”Platinum miners in South Africa, the world’s top supplier, have received a boost from rallies in palladium and rhodium as stricter vehicle pollution controls boost usage. South African miners’ earnings also get a lift from a weaker rand that lowers costs.The palladium deficit will widen to 1.9 million ounces this year from about 1.1 million ounces in 2019, Griffith said. While higher prices would naturally trigger a supply side response, Amplats won’t rush into building new mines, given the potential to substitute palladium with platinum in catalytic converters, he said.“There is a solution before we go and build new mines: it’s platinum,” Griffith said. “That’s the first thing we need do, that’s the answer to the problems of metal shortages.”Anglo Platinum reported headline earnings of 18.6 billion rand for 2019, compared with 7.6 billion a year earlier. Revenue surged 33%.(Updates with CEO comments in penultimate paragraph)To contact the reporter on this story: Felix Njini in Johannesburg at firstname.lastname@example.orgTo contact the editors responsible for this story: Lynn Thomasson at email@example.com, Dylan Griffiths, Nicholas LarkinFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Today we are going to look at Anglo American plc (LON:AAL) to see whether it might be an attractive investment...
The diversified mining company said that, excluding the impact of Minas-Rio, however, group copper-equivalent production is down 1% in the period.
The following are the top stories on the business pages of British newspapers. Sirius Minerals Plc has recommended a 405 million pound ($526.54 million) takeover by Anglo American PLc as the "only feasible option" to save its North Yorkshire fertiliser mine. The UK banking industry could be on collision course with the government over plans to level up economic performance after significant regional disparities in small business lending came to light.
Investing.com - Here is a summary from the most important regulatory news releases from the London Stock Exchange ahead of the UK market open on Monday 20 January. Please refresh for updates for UK market news from the LSE’s RNS on individual UK shares from FTSE 100, FTSE 250 and FTSE All-Share.
Anglo American stock slid on Wednesday as the mining giant said it was considering a £386 million bid to buy struggling fertilizer miner Sirius Minerals.
Could Anglo American plc (LON:AAL) be an attractive dividend share to own for the long haul? Investors are often drawn...
Mines across South Africa shut down on Tuesday after flash flooding triggered the most severe power blackouts in more than a decade, threatening a key export sector in a further blow to the country's already slowing economy. Heavy rains across parts of South Africa have submerged entire neighbourhoods, leading to evacuations and aggravating problems at state-owned utility Eskom, which has been struggling to keep the lights on since 2008. Harmony Gold, Impala Platinum and Sibanye-Stillwater all said they had been forced to cut production since Monday because of power shortages.
A global inquiry into how mining companies store billions of tonnes of waste in huge dams, launched after a collapse in Brazil killed hundreds, shows about a tenth of the structures have had stability issues, investors said on Thursday. The research was led by the Church of England (CoE) and fund managers after the collapse of a Vale dam in January unleashed an avalanche of mining waste on the Brazilian town of Brumadinho, killing an estimated 300 people. The investor review, which found at least 166 dams have had stability issues in the past, relied on companies' disclosures about their dams holding mining waste, known as tailings.