Anglo American Share Discussion Threads

[waldron] 10/12/2021 17:40

Mining giant Anglo American declares major changes to former Sirius Minerals project in Yorkshire

Polyhalite is a mineral that is highly valued for its ability to fertilise crops

Anglo American plans to invest c.$700m next year on the Woodsmith project

Tom Culley is to become the next CEO of Anglo American's Crop Nutrients arm

By Harry Wise For This Is Money

Published: 17:10 GMT, 10 December 2021 | Updated: 17:20 GMT, 10 December 2021



Mining giant Anglo American has announced a series of leadership and developmental changes to the former Sirius Minerals project in North East England.

The firm said it has nearly completed a review into the Woodsmith polyhalite project, which is being overseen by its Crop Nutrients business and has identified specific measures that are needed to enhance the site's safety and economic value.

These include the sinking of two mine shafts, and the development of the underground mining area to make room for expanded production capacity and the use of continuous miner machines.

Gigantic project: The Woodsmith Mine has the largest known deposit of polyhalite in the world and could potentially provide £100billion of economic benefit to the UK over a 50-year period


It plans to invest around $700million next year on the project, which was formerly run by Sirius Minerals until Anglo American bought the cash-strapped company in a £405million deal in March 2020.

The FTSE 100 multinational also revealed today that Tom Culley, the head of its Peruvian division, will oversee the project as he is to replace Chris Fraser as the chief executive of Crop Nutrients from the start of January.

Polyhalite is a mineral containing multiple nutrients such as potassium, calcium and sulphate that is not just highly valued for its ability to fertilise crops but for being a naturally-occurring product with a low-carbon footprint.


Yorkshire-based Woodsmith has the largest known deposit of polyhalite in the world and could potentially provide £100billion of economic benefit to the UK over a 50-year period.

Outgoing Anglo American chief executive Mark Cutifani said: 'This is a very long-life asset, and we are going to take the necessary time to get every aspect of the design right to match our long term vision and value aspirations.

'We have said from the outset that we expect to make improvements and that we will execute certain elements of the construction differently and with a more conservative schedule.


'We expect to have completed our design engineering, capital budget and schedule at the end of 2022, with a fully optimised value case that recognises the upside potential we see in Woodsmith, and we will then submit the full project to the Board.'

Alongside the announcement about Woodsmith, Anglo American confirmed its guidance for 2021 following a solid performance by the group.

Production is to rise by 7 per cent and unit costs are to increase by 10 per cent this year, while capital expenditure will decline $5.2billion on the back of issues with its supply chain and delays caused by the coronavirus.

Next year, meanwhile, it estimates unit costs to grow by 4 per cent and capital spending of between $6.2billion and $6.7billion, partly as a result of spending related to deferrals and the Woodsmith project.

Beyond that, the FTSE 100 miner, which is the globe's largest platinum producer and owns the well-known De Beers diamonds company, said it expected to deliver 35 per cent growth over the next decade at margins of 50 per cent.

It forecast a stronger performance in 2022, while planning to harness early copper production from Quellaveco, a $5billion project in one of the world's largest untapped copper resources.

The project in world's second copper producer is due to start up amid change in Peru, where a new leftist administration led by President Pedro Castillo has pledged to overhaul the mining industry and redistribute mineral wealth.

Shares in Anglo American closed trading 1.9 per cent lower at £29.16 on Friday, but their value is still up by about 14 per cent since the beginning of the year.

[waldron] 10/12/2021 17:30

Anglo American PLC on Friday downgraded its production outlook for platinum group metals, iron ore, metallurgical coal and nickel.

As part of a presentation to investors, the miner provided detailed guidance for 2021-24. Taking the mid-points of the guidance ranges provided, platinum group metals production is expected to stay at 4.3 million ounces a year until at least 2024. This represents a downgrade from previous expectations of 4.4 million ounces for both 2022 and 2023.

As for iron ore, production is expected to total 194.5 million metric tons in 2021-23, down from previous expectations of 199.5 million tons. In 2024 Anglo American expects it to rise to 67 million-71 million tons.

Meanwhile, metallurgical coal output is expected to increase more slowly than expected. The outlook for this year was reaffirmed at 15 million tons. However, the company now forecasts production to total 44 million tons over 2022 and 2023, down from 47 million tons previously. Annual coal output would then rise to 24 million-26 million tons in 2024.

Nickel guidance has been reduced to 125,000 tons in 2021-23 from the previous 134,000 tons, before reaching 42,000-44,000 tons in 2024.

Finally, copper production guidance has been narrowed down for 2022 and raised for 2023, whilst the outlook for diamonds stays unchanged.

Shares at 1138 GMT were down 0.9% at 2,946 pence.



Write to Jaime Llinares Taboada at [e-mail]; @JaimeLlinaresT



(END) Dow Jones Newswires

December 10, 2021 07:07 ET (12:07 GMT)

[grupo guitarlumber] 10/12/2021 08:57

proactive


John Harrington

08:10 Fri 10 Dec 2021

)
Anglo American upgrades scope of former Sirius Minerals potash mine

"As we move towards full project execution, it is a natural time for Chris [Fraser] to step into a new role and I'm pleased that we will benefit from his experience as he works with us on a number of strategic projects"


Anglo American PLC (LSE:AAL) upgraded the scope of the Woodsmith project, the once headline-grabbing North Yorkshire Moors polyhalite fertiliser project developed by Sirius Minerals.

The FTSE100 mining giant took control of Woodsmith in April 2020 when it acquired Sirius Minerals for £460mln. It has now largely completed a detailed technical review of the project that confirmed the findings of the company’s due diligence.

The review identified elements of the project’s design that would benefit from modification to bring it up to Anglo American's safety and operating integrity standards and to optimise the value of the asset for the long term, Anglo said in a stock market announcement.

Anglo American is also making a change to the leadership of the project following its integration into Anglo American and ahead of the full project execution phase. Tom McCulley, who has led the development of the Quellaveco copper project in Peru, will take over from Chris Fraser as chief executive officer (CEO) of Crop Nutrients. After 12 years of driving the project from inception to its position today, Chris Fraser, the former CEO of Sirius Minerals, will step aside and take on a role focused on strategic projects.

"We are very happy with the high quality and exciting potential of Woodsmith, with the scale and quality of the polyhalite orebody pointing to a Q1 [first-quarter] operating cost position and strong margins. This is a very long-life asset and we are going to take the necessary time to get every aspect of the design right to match our long term vision and value aspirations,” Mark Cutifani, the CEO of Anglo American said.

"We have said from the outset that we expect to make improvements and that we will execute certain elements of the construction differently and with a more conservative schedule. We expect to have completed our design engineering, capital budget and schedule at the end of 2022, with a fully optimised value case that recognises the upside potential we see in Woodsmith, and we will then submit the full project to the board,” he added.

[waldron] 10/12/2021 08:02

Anglo American PLC said Friday that a review of its Woodsmith polyhalite fertilizer project in England confirmed that its design would benefit from modifications.

The mining company has now appointed Tom McCulley to lead the project, and said that those proposed changes would bring Woodsmith up to Anglo American's safety and operating integrity standards, and would also help optimize the value of the project for the long term.

Anglo American said these changes will result in a different and enhanced configuration, and therefore a different construction and production ramp-up schedule.

The company expects to have completed a design engineering, capital budget and schedule at the end of 2022.

"In the meantime, construction of the major critical path elements of the project, principally the two main shafts and the mineral transport tunnel, is progressing, with approximately $0.7 billion of capital expected to be invested in 2022," Chief Executive Mark Cutifani said.



Write to Jaime Llinares Taboada at [e-mail]; @JaimeLlinaresT



(END) Dow Jones Newswires

December 10, 2021 02:44 ET (07:44 GMT)

[waldron] 10/12/2021 07:53

(MT Newswires) -- Anglo American's (AAL.L, AAM.SW) overall production in 2021 climbed 7% year over year and it expects the performance to improve further in 2022.

The diversified miner said Friday the increase was driven by strong performance in the platinum group metals segment and an increase in demand for rough diamonds. The unit costs climbed 10% in the year and are expected to increase 4% in 2022.

The company expects a capital expenditure of $6.2 billion to $6.7 billion in 2022.

[capitol2] 07/12/2021 15:54

Wording in gdr share rns previous Monday on new high speed covid test next news expected with in days

[coxsmn] 07/12/2021 07:09

https://www.proactiveinvestors.co.uk/companies/news/968339/five-at-five-copper-buzz-for-2022-cryptos-hit-by-the-grinch-how-to-bet-on-bt-and-house-builders-oh-and-the-ftse-968339.html

[adrian j boris] 06/12/2021 16:40

Proactive

16:03 Mon 06 Dec 2021

How does JP Morgan's view on the iron ore price affect its valuations of Rio Tinto, Glencore and Anglo American?

The Wall Street bank has cut its forecast for the iron price


JP Morgan has taken out the red pen to forecasts for the iron price based on subdued demand from China, the world’s largest consumer of iron and steel.

“We expect a second-half hangover from the weakest China property activity in more than 10 years to persist into 2022,” the influential Wall Street bank said in a note to clients.

“We expect weaker downstream steel demand to be compounded by a regime-shift that is imposing greater regulatory control over the property sector and emissions-intensive industries.”

Iron is the main component of rebar used to support the huge concrete structures popping up across the country, while the girders for such buildings are steel. So, a downturn in the Chinese property market will hurt the major excavators of raw materials.

JPM sees the iron price for 2022 and 2023 in the order of US$92 and US$90 per tonne respectively, down from US$105 and US$100.

Looking at the stock-specific implications, the bank has cut its price target for Rio Tinto to £49.50 a share from £60 and has downgraded the stock to ‘neutral’;.

Anglo American, already ‘neutral’;, is worth £26, down from £28, while the Glencore (‘overweight recommendation) valuation moves to £4.80 a share from £4.20.

[philanderer] 03/12/2021 13:59

MORGAN STANLEY CUTS ANGLO AMERICAN TARGET TO 2,960 (3,010) PENCE - 'EQUAL-WEIGHT'

[philanderer] 02/12/2021 00:16

Anglo American plans to dismiss unvaccinated workers

FTSE 100 mining giant's vaccine demands will apply to all of its 95,000 employees worldwide and take effect early next year

[waldron] 26/11/2021 19:41

Rio Tinto
4,542.5 -2.69%


Bhp
1,962 -2.39%


Anglo American
2,635 -7.40%


Glencore
352 -5.50%


Vale seems unaffected

[Brazil] VALE S.A. (VALE3)

End-of-day quote. End-of-day quote Bolsa de Valores de Sao Paulo - 11/25

70.5 BRL -0.68%

[cheshire pete] 26/11/2021 09:27

After fall this morning, looks a big ask for next 5 weeks dave but next 12 months possible. Broker consensus would suggest so.

[philanderer] 26/11/2021 00:45

Thanks pete.

[hopefuldave] 26/11/2021 00:43

Honestly,do you think the share price will make it to30+, this year???

[cheshire pete] 25/11/2021 22:00

philanderer

official stance in Peru softens:

[kreature] 23/11/2021 23:35

I still think Woodsmith will end up as an underground passenger service to Teeside and not a mine. Hence two years later digging of the production shaft still not started as of July 2021 interims? A mine just makes no sense to me, whereas Whitby desperately needs a fast link to Teeside , imo

[philanderer] 23/11/2021 11:05

DEUTSCHE BANK CUTS ANGLO AMERICAN PRICE TARGET TO 3,400 (3,600) PENCE - 'BUY'

[philanderer] 22/11/2021 14:07

'Hochschild shares drop by a third after Peru seeks to shut mines'

..... “This further increases the  geopolitical risk for miners operating in Peru,” said JPMorgan analyst Patrick Jones. “This presents negative read-across for Anglo American, whose flagship Quellaveco copper project is located in Peru.”