|Bid||1,348.40 x 0|
|Ask||1,350.80 x 0|
|Day's range||1,307.80 - 1,376.20|
|52-week range||1,018.20 - 2,294.00|
|Beta (5Y monthly)||1.18|
|PE ratio (TTM)||4.90|
|Earnings date||20 Feb 2020|
|Forward dividend & yield||0.89 (6.37%)|
|Ex-dividend date||12 Mar 2020|
|1y target est||24.50|
Unfortunately for some shareholders, the Anglo American (LON:AAL) share price has dived 30% in the last thirty days...
Anglo American said on Friday it expected a 2 million to 3 million tonne fall in production at its Kumba Iron Ore unit in South Africa this year and a drop of up to 2 million tonnes in output of export coal due to a three-week shutdown. The London-listed miner also lowered output of platinum and diamonds in South Africa, extended a slowdown in construction at its Quellaveco copper project in Peru and paused work in its Woodsmith polyhalite project in Britain.
Those following along with Anglo American plc (LON:AAL) will no doubt be intrigued by the recent purchase of shares by...
Colombian mining companies, including coal producers Cerrejon and Drummond, will reduce operations to slow the spread of coronavirus, the sector's guild said on Tuesday. Some 15,000 workers directly employed in the industry will stop working, as will 18,000 indirect workers, the Colombian Mining Association (ACM) said in a statement. The Andean country will enter a nationwide 19-day quarantine late on Tuesday aimed at preventing further spread of coronavirus, which has killed more than 15,300 people worldwide.
South African mining companies are bracing for a heavy hit from the country's looming nationwide lockdown to slow the spread of the coronavirus, warning of an expected leap in costs in addition to their lost output. A leading producer of metals and minerals such as platinum, palladium, coal, gold and iron ore, South Africa's labour-intensive mining industry is a potential hotbed of infection among the thousands of miners who often work in confined spaces, with some living nearby in cramped accommodation. President Cyril Ramaphosa on Monday imposed a 21-day lockdown from midnight on Thursday after a surge in coronavirus cases.
(Bloomberg) -- South Africa’s iconic mines, from the ever-deepening gold shafts on which the economy was founded to massive iron ore pits and rich platinum seams, are about to go silent.From midnight Thursday, all but a few coal operations needed to fuel the country’s power stations are expected to be included in a nationwide lockdown aimed at containing the coronavirus. The sweeping shutdown is unprecedented in the 150-year history of South Africa’s mining industry, which today employs more than 450,000 people.President Cyril Ramaphosa is moving quickly to curb the virus spread as infections threaten to spiral out of control in a country with an already strained health system and rampant unemployment. The army will help police to enforce the lockdown, with grocers, pharmacies, banks, filling stations and other essential services allowed to remain open.Producers from Harmony Gold Mining Co., the nation’s biggest producer of the precious metal, to top platinum miner Sibanye Stillwater Ltd. said they’re bracing for earnings hits as mines move to care and maintenance, an industry term for when production stops but essential services like underground water pumping continue. Anglo American Plc said it will review the detailed regulations on the lockdown when they’re published, including for potential exemptions.“This would be unprecedented in the history of mining in South Africa,” said Roger Baxter, the chief executive officer of the Minerals Council South Africa, the main industry group. “There were certain times when components of the industry were closed, for example during the second world war, but this is unprecedented.”Labor IntensiveSouth Africa’s mining industry is labor intensive, and digging underground means workers regularly enter narrow elevators together to travel beneath the surface. Many of the thousands of workers who will be affected by the shutdown live in close proximity to one another in mining communities around the operations.“Companies whose operations require continuous processes such as furnaces, underground mine operations will be required to make arrangements for care and maintenance to avoid damage to their continuous operations,” Ramaphosa said Monday.For global metal markets, the biggest impact may be in platinum and palladium -- South Africa accounts for 75% and 38% respectively of global supply. Prices for both metals, which are used in autocatalysts, extended gains Tuesday, with spot palladium rising more than 15%, the biggest intraday gain since 1998. Shares in MMC Norilsk Nickel PJSC, the world’s top producer of palladium, jumped as much as 23%.Palladium was in a persistent and widening global deficit before the health crisis took hold around the world. Still, sweeping factory closures by carmakers are likely to limit the effect of South Africa’s shut down on global metal supplies as demand tumbles.South African operations are also crucial for some of the world’s biggest miners. Anglo American was projected to get about 50% of its profits from the country this year, according to BMO Capital Markets. Glencore Plc and South32 Ltd. are also active in the country, while smaller miners such as Petra Diamonds Ltd. and Bushveld Minerals Ltd. have the majority of their operations there.The two biggest industry labor groups, the Association of Mineworkers and Construction Union and National Union of Mineworkers, both welcomed the measures announced by Ramaphosa.The Minerals Council is also exploring what will be required to prevent the lockdown leading to permanent damage of the industry, it said in a statement.“There are marginal and lossmaking mines that would likely be unable to reopen should they be required to close fully, without remedial measures,” the group said.For 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) -- Lockdowns imposed to control the coronavirus have battered China’s appetite for everything from coal to copper, pushing stockpiles of raw materials higher and global prices lower. The next crunch could come from supply. The risk of an outbreak is growing in ill-prepared producer countries, with mandatory quarantines and border shutdowns threatening to choke off production.Prices of bulk commodities are already seeing some support from such disruptions, as ports and mines close. Coking coal in particular has outperformed owing in part to Mongolia’s decision in late January to seal its border with China, which cut off a key source of supply. The impact may be only short term. With factory shutdowns spreading through the U.S. and Europe, the reduction in wider metals supply would need to be dramatic to offset crumbling global demand. Upheaval could provide some price support regardless.Appetite for virtually all commodities has slumped since January, when the extent of damage from the novel coronavirus became clear. Even where mills, smelters and factories stayed open, that largely translated into crammed warehouses. China’s industrial production, investment and retail sales for the first two months of the year plunged across the board, with construction particularly weak. China’s economy is now all but certain to contract in the first quarter from a year earlier.With European automakers and other manufacturers shuttering operations, the drop in commodity demand in the first three months is likely to be even worse than during the global financial crisis. Steel demand will fall more than a fifth, copper will slide 14% and aluminum almost a third, analysts at BMO Capital Markets estimate.It hasn’t helped futures prices that the latest wave of closures is coming as we head into the second quarter, usually a peak period for demand. China, by contrast, was worse hit during the quieter Lunar New Year. Copper, a bellwether of confidence in global manufacturing, has tumbled to four-year lows of around $4,800 per metric ton on the London Metal Exchange.Travel and quarantine restrictions have already damaged supply, making it harder for miners to fly employees in and out and impeding projects under construction. Peru’s quarantine has already prompted Anglo American Plc to stop all nonessential work at its $5 billion Quellaveco project and withdraw most of the site’s 10,000 staff and contractors. Canada’s Teck Resources Ltd. has suspended work at its Quebrada Blanca Phase 2 in Chile, while Rio Tinto Group says work has slowed on its underground mine at Oyu Tolgoi in Mongolia.Lockdowns may be even more severe. Copper mines are among the worst affected as Chile and Peru, the world’s top two producers, scramble to contain the virus, prompting Anglo American, Antofagasta and others to send staff home. Chilean state behemoth Codelco will work at reduced capacity for two weeks, while workers at BHP Group’s Escondida, the world’s largest copper mine, threatened action to compel the company to take more preventative steps. The miner said Saturday it would reduce the number of contractors onsite. Analysts at Bank of Nova Scotia estimate a two-week halt in operations in those two countries would amount to 325,000 tons of lost production — roughly 4% of their combined annual output. This serves to underline the geographical concentration of a handful of key materials. Lithium is produced mainly in Chile and Australia, while iron-ore exports are dominated by Australia and Brazil. The price surge after last year’s Vale SA dam disaster shows what a port closure could do to the iron-ore market, though such a move appears unlikely given the huge budget contribution that the material makes to Brazil and Australia.Many producer countries are developing economies and ill-equipped to handle an epidemic that has floored even the world’s richest nations. In Brazil, the response has been patchy at best, with some states taking measures that are increasingly at odds with the federal government. Poorly implemented lockdowns, as seen in the Philippines, could push thousands of casual workers out of cities in search of work in more remote areas — potentially extending the spread.If more drawbridges are raised, expect supplies from explosives and tires to heavy equipment to get blocked, hampering even mining operations that could otherwise keep going. In the meantime, low prices will hurt some higher-cost projects, though rock-bottom prices for oil, a significant input, will cushion the blow. This will affect smaller producers first, given the healthy balance sheets of big miners. Still, operations like Rio’s Pacific Aluminium, or pricey U.S. copper mines, look vulnerable.Demand was the first part of an unprecedented crunch for the global commodities industry. The second act is only beginning. This 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.
Anglo American said on Friday it would cut the number of workers at its operations in countries such as Chile to contain the spread of coronavirus but added there would be no material disruption on production. The global miner, which produces copper in Chile, said its supply chains were functioning well at the moment as a result of engagement with suppliers. Anglo said on Thursday it would reduce operations at its Los Bronces copper mine in Chile and said production losses would be minimal.
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Anglo American Platinum's full-year production of platinum group metals will be at the lower end of its previous outlook, it said on Thursday, sending its shares down 10%. The world's second-biggest platinum group metals producer, known as Amplats, declared force majeure and cut its production outlook on March 6 after it shut a converter plant following an explosion. Amplats said repairs at its processing facilities would cost 650 million to 800 million rand ($37 million to $46 million) and that it ws reviewing its capital spending plans for 2020.
Global miner Anglo American on Tuesday said it is slowing down the construction work of the Quellaveco copper project in Peru, following a 15-day national quarantine to curb the spread of the coronavirus outbreak. The Quellaveco project is expected to start production in 2022, with an expected capital cost of $5 billion to 5.3 billion, Anglo said.
(Bloomberg Opinion) -- Oil majors and big miners have been falling over themselves to promise better behavior when it comes to greenhouse gases. A significant number now say they are targeting zero emissions. Unfortunately, not everyone agrees on exactly what that means. It leaves investors clear on good intentions, but far less so on how to price transition risk, compare strategies and judge success.The real trouble sits with the widest and most significant category of emissions — those that don’t come directly from operating a well or mine, but are produced indirectly when oil, gas, iron ore or coal is burned or processed by customers. For outfits like BP Plc and BHP Group, these so-called Scope 3 emissions can add up to as much as 90% of their total footprint. They’re also far harder to control, as they aren’t produced by the reporting companies themselves.Resources giants, even poorly performing oil majors, have the scale and financial clout to manage a transition to a carbon-light economy — should they choose to. The rapid destruction of value in segments of the coal sector has left few in doubt of how quickly they could be left behind if they ignore such downstream emissions. This week's collapse in oil prices is another memento mori for carbon-intensive businesses.That doesn’t mean everyone has embraced the idea of targeting Scope 3 emissions. Rio Tinto Group, for one, has said it can’t set targets for its clients, though it will engage in as yet unspecified projects with the likes of China Baowu Steel Group Corp. BHP will produce numbers later this year. Others, like BP, have promised to eliminate Scope 3 emissions where they’ve drilled the oil, but won’t commit to doing the same if they’re only doing the refining. Spain’s Repsol SA is among the few to be promising an absolute zero target for all three sets of emissions.In this flurry of green activity, what should investors be demanding?The first thing should be transparency. Many of the biggest emitters have yet to make full Scope 3 disclosures, including such pillars of developed-market stock indexes as Exxon Mobil Corp., Anglo American Plc, and Fortescue Metals Group Ltd. At this point, that decision is almost churlish: It isn’t hard for investors to do their own calculations. Those that don’t face up to the reality of decarbonization will increasingly be treated like any other business that’s careless about its medium- and long-term liabilities.A second point is comparability. Although the overwhelming majority of Scope 3 emissions for resources companies come from the processing and combustion of their products, the standard incorporates a range of other activities such as waste disposal, product distribution, and even business travel and staff commuting.To add to that complexity, companies can replace the standardized emissions factors used to produce the figures with bespoke ones if their customers operate particularly efficient plants. Without full transparency about where those savings come in, companies could reduce their footprint by leaning on overly generous assumptions, and claim credit that more rigorous competitors would miss out on.There is also the unsolved question of how to manage double-counting, when, for example, coking coal and iron ore are sold to a producer that will use both in making steel.Investors should demand the means to measure progress, and success. Laying out ambitions for emissions 30 years hence is all but meaningless unless you’re also describing a path to get there. If investors are to take these numbers seriously, they’ll want to see plans for the steps along the way.That won’t be easy. For oil majors, it will require nothing less than a reinvention of their entire businesses, moving into industries that have historically produced lower returns than fossil fuels, as former BP Chief Executive Officer Bob Dudley has pointed out.Mining giants that have depended on revenues from high-volume bulk commodities such as coal and iron ore will have to either push their customers to switch to new technologies such as hydrogen-reduced steel, or depend on less lucrative base metals, specialty commodities and agricultural inputs.Providing too much detail about the road ahead risks disclosing a company’s business strategy, too, or tilting the market. How much of the reductions will come, as with Glencore Plc, from allowing mines and wells to deplete naturally as their reserve base is used up? How much will depend on selling assets, such as BP’s near-20% stake in Rosneft? How much will rely on technology that exists, but is not yet used on a wide scale, like carbon capture and storage?The last point on fund manager wish lists should be consistency. Investors will benchmark talk of long-term ambitions against performance on actual, shorter-term activity.Gabriel Wilson-Otto, head of stewardship, Asia Pacific, at BNP Paribas Asset Management, suggests that will mean keeping an eye on capital spending: Projects that generate downstream emissions decades into the future should be attracting more scrutiny. Similarly, corporate lobbying will be monitored for evidence it is allowing organisations to flash up green ambitions but still campaign against action on climate.None of this should be a burden on good governance. The CDP, a nonprofit research group that pushes for greenhouse disclosure, found in 2014 that the return on investment for companies that do so was 67% higher than for those that didn’t.The winds of decarbonization are blowing through the commodities industry. Companies that don’t bend in the face of these changes will break. To contact the authors of this story: Clara Ferreira Marques at firstname.lastname@example.orgDavid 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 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.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/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Unfortunately for some shareholders, the Anglo American (LON:AAL) share price has dived 40% in the last thirty days...
Thursday is arguably the day the impact became tangible, as a slew of UK companies warned coronavirus was hurting their business.
Anglo American has signed a 15-year contract in Brazil to buy 70 MW of solar power from Atlas Renewable Energy as of 2022 for its operation in Minas Gerais, the mining company said in a statement on Tuesday. Atlas will invest 881 million reais ($190 million) in a solar farm in Minas Gerais state to cover the Anglo American contract, the mining company said. Anglo aims to be using 100% renewable energy by 2022.
With coronavirus hammering global stock markets, these share prices have been hit hard and Andy Ross thinks they now look too cheap. The post These shares plunged in a single day. I think they could now be buys appeared first on The Motley Fool UK.
Cerrejon, one of Colombia's biggest coal producers, and its largest workers union on Friday concluded contract negotiations without reaching an agreement, the parties said. Union members will now vote on whether to strike or to go to arbitration with the company. "Negotiations remain ongoing," Cerrejon said in a message, which is owned equally by BHP Group, Anglo American and Glencore.
A Brazilian state environmental authority on Thursday defended granting a license to miner Anglo American PLC to expand an iron ore facility, including a mining waste dam, following a lawsuit by public prosecutors seeking to block the project. Minas Gerais, a major mining state, passed a law instituting new safety measures for miners last year following the collapse of a tailings dam at a Vale SA mine that killed more than 270 people. State public prosecutors contend that Anglo's environmental license for the Minas-Rio facility expansion should be blocked and no further licenses should be granted, at least until three communities downstream from the dam are guaranteed the right to be resettled.
Does the acceptance of an offer by Sirius Minerals now make Anglo American a buy?The post The Sirius Minerals share price jumped 17%. Should I now buy Anglo American shares? appeared first on The Motley Fool UK.