|Bid||0.00 x 0|
|Ask||0.00 x 0|
|Day's Range||10.42 - 10.53|
|52 Week Range||9.37 - 14.74|
|Beta (3Y Monthly)||0.53|
|PE Ratio (TTM)||6.53|
|Forward Dividend & Yield||0.62 (5.99%)|
|1y Target Est||2.28|
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.
(Bloomberg) -- Government geologist Gino Casassa steps down from the helicopter and looks around in dismay.Casassa is standing at the foot of a glacier, 4,200 meters (13,800 feet) above sea level. The sky over the Andes is a deep blue, but something is not right: It’s July—mid-winter in South America—and yet it’s mild for the time of year, above 0 degrees Centigrade. He takes off his orange ski jacket and walks on the bare rock.“This should all be covered by snow this time of year,” he says, pointing to Olivares Alfa, one of the largest glaciers in central Chile, just a few meters away. “There used to be one single glacier system covering this whole valley; now it’s pulled back so much that it’s divided into four or five smaller glaciers.”Chile has one of the world’s largest reserves of fresh water outside the north and south poles, but the abundant glaciers that are the source of that precious commodity are melting fast. That’s not just an ecological disaster in the making, it’s rapidly becoming an economic and political dilemma for the government of Latin America’s richest nation. A toxic cocktail of rising temperatures, the driest nine-year period on record and human activity, including mining, is proving lethal for the ice of Chile’s central region. Built up over thousands of years, the ice mass is now retreating one meter per year on average. Less than two decades from now, some glaciers will have disappeared, while the total volume of all glaciers in Chile will have shrunk by half by the end of the century, says Casassa. That’s an acute problem since Chile, which has 80% of South America’s glaciers, is also the Americas country most at risk of extremely high water stress, according to the World Resources Institute. More than 7 million people living in and around the capital, Santiago, rely on the glaciers to feed most of their water supply in times of drought.Chile’s government is well aware of the issue. A glacier unit was established in 2008 and tasked with producing an inventory of glaciers with the aim of protecting them and raising awareness of their importance. But its resources are limited: it had a staff of just seven last year—Casassa is the unit’s director—and has so far published a single register of glaciers, in 2014, using decade-old data. The unit is due to issue a second inventory later this year allowing the first ever comparison of all Chile’s glaciers. Not everyone is content to wait. An opposition bill now before parliament aims to lock in legal protection for glaciers. But President Sebastian Pinera’s center-right government has come out against it, arguing that if implemented, the measures would harm Chile’s economic development, and specifically its lucrative mining industry.Glaciers happen to cover some of the massive copper deposits that make Chile the world’s largest producer of the metal, with about a third of the world’s copper output coming from its mines each year. Mining is key to Chile’s economy, making up 10% of its gross domestic product and comprising just over half its exports. That economic reality is at the heart of the government’s quandary, evaluating the trade-offs required to protect the environment while supporting an industry worth some $19 billion to the economy. Chile’s minister for mining, Baldo Prokurica, insists the twin aims are not mutually exclusive.“Mining can be done without damaging the environment and that’s what we want to do,” Prokurica said in an interview in Santiago, pointing out that countries with similar challenges such as Canada, Norway and the U.S. have higher environmental standards and still manage to mine without a glacier law. The bill proposes all glaciers and their surroundings become protected areas, bans non-scientific interventions and considers any violations of the rules to be crimes. That’s too broad brush for Chile’s government, which plans its own environmental legislation. “I believe in preserving the glaciers, but also in mining,” said Prokurica.Pinera’s minority government is still on the back foot over the bill in the same year that it’s due to host the United Nations COP25 climate change summit, making it an easy target for charges of hypocrisy by opponents. “If they don’t support the glacier bill, it will show their bid for COP was playing to the gallery,” says Guido Girardi, the opposition senator who sponsored the legislation. “We’re facing a catastrophe and not protecting glaciers is not an option anymore.”Glaciers have long been the bane of the mining industry. During the 1970s, state-owned copper miner Codelco removed glaciers covering a rich deposit in the mountains northwest of the capital to allow development of its Andina mine. At a time when Chile had almost no environmental protections, the act was celebrated as a great feat of engineering. Scientific advances mean that it’s now known glaciers help lower temperatures and increase air humidity for a 50-kilometer (30-mile) radius. They’re also the reason that rivers in central Chile carry about the same volume of water during the current extreme drought as in normal conditions. In a dry year, as much as two-thirds of the water in river systems feeding Santiago comes from the glaciers high up in the Andes.The upshot is that as drought conditions become more prevalent from Cape Town to Chennai in India, Chile remains relatively sheltered. Some 70% of the country’s population of 18 million lives in areas where glaciers make the difference.But that natural safety net is coming under increasing strain. While most mines in Chile are in the country’s northern Atacama desert, miners are moving south in search of newer and richer deposits—and encountering glaciers on the way. “Requests to explore and mine in areas with a large presence of glaciers are only increasing,” said Francisco Ferrando, a glaciologist and professor at Universidad de Chile in Santiago.Most of Chile’s glaciers are in the southern Patagonia region, and while a few are located inside national parks and hence protected, the majority aren’t, meaning that any intervention is treated on a case-by-case basis. White glaciers, where the ice is in direct contact with air, enjoy wider protection than less well-known rock glaciers—masses of frozen water that have sat beneath layers of rock for millennia.An academic paper from 2010 found that a third of all rock glaciers in central Chile had been directly impacted by mining activities such as road building, drilling platforms and depositing waste on top of the ice. In addition, dust from trucks and explosions in pits as well as vibrations from heavy machinery accelerate the melting. Mining itself is water intensive since it’s needed in each step to produce copper, with usage forecast to rise.Almost every large mining company operating in Chile has impacted glaciers, including Anglo American Plc. at its Los Bronces mine and Antofagasta Plc. at Los Pelambres, according to the paper.Anglo American’s Los Bronces operation and Codelco’s Andina mine are exploiting the world’s largest copper deposit in the Andes, about 40 miles from Santiago. Only a rock ridge separates them from the Olivares Alfa glacier. The two giant pits, the mining trucks and dust from the explosions are clearly visible from a helicopter. With both companies planning new billion-dollar projects to maintain production at current levels, alarm bells have been set off among environmentalists, who say that mining is hastening the process of desertification.It’s a charge miners reject. Joaquin Villarino, the president of industry group, Mining Council, has said that glaciers are shrinking because of climate change, and that pollution from transport and other industrial activities in Santiago are also having an impact. The glacier bill contains “serious errors,” he said. All the same, miners are taking action. While Codelco is doing early engineering work on an expansion of its open-cast Andina mine, its sister mine, Los Bronces, will go partly underground in a $3 billion plan to avoid impact on the surface. Owner Anglo American “acknowledges the importance of glaciers and has the conviction that mining activity and the preservation of the environment can coexist,” the company said in an emailed response to questions. Codelco declined to comment on its plans for Andina.Pinera’s administration is going on the offensive. Approval of the glacier bill would force four mines including Andina and Los Bronces to halt operations, costing billions of dollars and more than 34,500 jobs, according to a report by the government’s copper commission Cochilco. Copper output would fall by 11% through 2030, impacting global metals markets, it said. Casassa, the geologist, sees the impact of climate change accelerating but shares the government’s assessment that there is no need for specific glacier legislation. The government may be powerless to stop the bill, however, since it lacks a majority in either chamber of parliament. Lawmaker Girardi says it could clear both the senate and chamber of deputies by early next year, an outcome he sees as of global significance. “All the changes we are seeing, all the climate catastrophes across the world are just the beginning,” Girardi said. “Chile’s glaciers are strategic, not just for our country, but for all humanity.” \--With assistance from Maria Jose Campano and Samuel Dodge.To contact the author of this story: Laura Millan Lombrana in Santiago at firstname.lastname@example.orgTo contact the editor responsible for this story: Alan Crawford at email@example.comFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Regular readers will know that we love our dividends at Simply Wall St, which is why it's exciting to see Anglo...
(Bloomberg) -- The crisis squeezing the diamond industry is gaining momentum.De Beers reported another sharp drop in its latest sales to the lowest since 2015, after the world’s biggest producer allowed its struggling customers to defer more purchases to later this year.The mostly family-run businesses that cut, polish and trade the world’s diamonds are battling to make a profit as demand slumps because of a surplus of polished stones and as demand for high-end jewelry stagnates. It has also become harder for these companies to access financing.De Beers sells gems at 10 sales a year in Botswana to a select group of customers, who are expected to accept the price and quantities they’re offered. Membership of the group was once a lucrative coup for anyone in the industry, but some buyers are now struggling to make money as De Beers keeps prices high, even if it means selling fewer stones.The company, a unit of Anglo American Plc, had already loosened the rules by letting its customers lower their annual quotas and defer purchases. It also trimmed production plans earlier this month as it seeks to match supply with weaker demand for rough diamonds.“De Beers Group provided customers with additional flexibility to defer some of their rough diamond allocations to later in the year,” Chief Executive Officer Bruce Cleaver said in a statement Tuesday. “As a result, we saw a reduction in sales.”De Beers sold just $250 million of rough diamonds in its most recent offering, down 53% from a year earlier and the lowest since the 10th sale of 2015, according to the company’s reports.\--With assistance from Thomas Biesheuvel.To contact the reporter on this story: Liezel Hill in Johannesburg at firstname.lastname@example.orgTo contact the editors responsible for this story: Lynn Thomasson at email@example.com, Liezel Hill, Nicholas LarkinFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(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 firstname.lastname@example.orgTo contact the editor responsible for this story: Edward Evans at email@example.comThis 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.
(Bloomberg) -- It once looked like Anil Agarwal could shake up the mining industry by amassing the biggest stake in Anglo American Plc. But in the end the Indian tycoon’s lack of financial firepower forced him to unwind his investment.For two years, Agarwal kept insiders and Anglo executives guessing about why the billionaire decided to take a position in the London mining giant. The deal -- structured in a complex way as to giving voting rights but not much exposure to the shares -- seemed to make sense only if Agarwal planned to push for a major change, like a takeover or breakup.In the end, he decided to do neither. On Thursday evening, Agarwal, one of India’s richest men, announced that he was exiting his investment because his returns were “achieved even sooner than expected,” according to a statement released by his holding company Volcan Investments Ltd.Agarwal will likely make about $500 million from his investment and pocket between $200 million and $300 million after fees, according to people familiar with the matter who asked not to be identified. It’s a small gain considering Anglo shares had soared more than 80% since March 2017, when Agarwal first announced he would buy a stake.“As Anglo American’s share price climbed, it became even more clear that Agarwal lacked the firepower to work an approach,” said Ben Davis, an analyst at Liberum Capital Markets. “He’s made far less than he would have done with a straight investment, though his bankers would have done well out of it.”Anglo shares fell 4.9% to 2,081 pence as of 10:43 a.m. in London.The billionaire maintained that his interest in Anglo was a family investment and he didn’t intend to make a takeover offer.The biggest challenge Agarwal would have faced is the surge in Anglo’s share price since he bought his first tranche. His two listed ventures, Vedanta Ltd. and Hindustan Zinc Ltd., slumped over the same period making any kind of merger hard to execute. At the same time, presumed allies such as South Africa’s Public Investment Corp. looked less aligned.Agarwal amassed his stake through a mandatory exchangeable bond issued by Volcan and secured by Anglo shares. The bonds were issued in March and September 2017 and financed the $3.5 billion pound ($4.4 billion) investment.Volcan now plans to call the exchangeable bond, according to a statement released late Thursday, meaning investors owning the Volcan bond will now receive Anglo shares. The mining company could see higher trading volumes in the coming days as the new owners of Anglo shares close out the short positions used to hedge, said RBC Capital Markets.“The unwind of this structure will remove, in our view, any tangible potential for Volcan to pursue large-scale corporate activity with Anglo American going forward,” said Tyler Broda, an analyst at RBC. “We would not expect to see any fundamental derating in Anglo American on the back of this adventurous bond coming to an end.”Agarwal’s decision to unwind his investment in Anglo and take the investment proceeds is a positive for Vedanta Ltd., an Indian mining company that’s controlled by the billionaire, said ICICI Securities Ltd. analysts led by Abhijit Mitra.Vedanta Resources’ $1 billion 6.125% note due 2024 rose 2.1 cents on the dollar to 94.17 cents, the biggest gain since January, according to Bloomberg-compiled prices.\--With assistance from Divya Patil and Swansy Afonso.To contact the reporters on this story: Lynn Thomasson in London at firstname.lastname@example.org;Thomas Biesheuvel in London at email@example.comTo contact the editors responsible for this story: Lynn Thomasson at firstname.lastname@example.org, Liezel HillFor more articles like this, please visit us at bloomberg.com©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.
(Bloomberg) -- Anglo American Plc plans to buy back up to $1 billion of shares after the diversified miner reaped bumper profits from its iron ore business, more than offsetting declines in diamond and copper.Anglo is the first to report earnings among the handful of giant miners that produce iron ore and investors have been preparing for big windfalls. The steelmaking ingredient surged to the highest in more than five years after a deadly Brazilian dam collapse and operational setbacks in Australian caused a supply shock.The buyback represents a shift for Anglo, which has been focused on repairing its bruised balance sheet and investing in growth while the world’s biggest producers handed massive amounts of money back to shareholders in recent years. The company’s net debt stands at $3.4 billion.Cutifani said that after paying more than $3 billion in dividends since restarting the payments in 2017, and investing in growth, the buyback was a way of rewarding shareholders who wanted a different kind of return.“For us it’s not about a short-term sugar rush,” Cutifani said. “It’s about getting the balance right and creating the world’s best mining business over the short, medium and long term.”Anglo shares rose as much as 2.1% in early trading and were 1.7% higher at 8:05 a.m. in London.For Anglo, the iron ore rally has meant surging profit from a commodity that’s traditionally been a weak spot. After missing out on huge mines in Australia 20 years ago, the company has been scrambling to catch up, including by building the financially disastrous Minas Rio mine in Brazil.Still, the outlook for iron ore may not be quite as rosy, with analysts including Liberum Capital Markets suggesting prices may have peaked. Fears of a global shortage are easing after Vale SA got permission to restart some operations in Brazil and as port stockpiles in China rise.The market remains tight for now and the company sees the premium for its high-quality product rising, Chief Executive Officer Mark Cutifani said on a call.Problem ChildWhile iron ore is the star of Anglo American’s results, the company’s diamond unit has turned into a problem child. Earnings from De Beers dropped 27% in the first half amid weak demand, too much supply and as customers struggle to make a profit.Anglo is now targeting full-year cost and volume improvements of $400 million in 2019, down from an earlier target of $500 million, after adjusting for lower diamond production.De Beers last week trimmed its diamond-production plans for this year as the company seeks to match supply to slumping demand.(Updates with revised volume and cost target in penultimate paragraph.)To contact the reporter on this story: Thomas Biesheuvel in London at email@example.comTo contact the editors responsible for this story: Lynn Thomasson at firstname.lastname@example.org, Liezel Hill, Nicholas LarkinFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
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.
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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...
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...