Anglo American Share Discussion Threads

[vas007] 23/6/2023 14:22

Thanks for your comments??

[philanderer] 23/6/2023 13:55

Markets looking for recession. Demand from China dropping.

[vas007] 23/6/2023 13:40

Can someone please explain why metals are so heavily trashed all this week?

[vas007] 21/6/2023 08:41

???Yes Div's are coming in Aug23

[tuftymatt] 21/6/2023 08:19

Yeah not good news on the diamond front today and with the recent bounce in miners dipping, AAL falls to circa 2350 as it stands.

Stay holding for the recovery which will come and if you hold as part of a diverse portfolio then enjoy the divi as long term today's share price is not a concern.

Good luck all 👍🏻

[vas007] 21/6/2023 07:36

Mean't-Tufty sorry -auto spell .

[vas007] 21/6/2023 07:33

Fufty- AAL ,taking a dip now , but I am confident it will fly high again.

[florenceorbis] 21/6/2023 06:40

TOP NEWS: Anglo American rough diamond sales fall amid cautious market

Wed, 21st Jun 2023 07:33


(Alliance News) - Anglo American PLC on Wednesday said rough diamond sales at its De Beers arm declined due to ongoing global macroeconomic challenges.

The London-based mining company said provisional rough diamond sales value for the fifth sales cycle of 2023 was down 6.1% to USD450 million, from USD479 million in the fourth cycle. Sales slumped by nearly one third from USD657 million in the fifth cycle of last year.

The provisional rough diamond sales figure quoted for cycle five represents the expected sales value from June 5 and June 20 and remains subject to adjustment based on final completed sales.

Cycle four actual sales value represents sales between the dates of May 1 and May 16.

"Following the JCK Show, and with ongoing global macroeconomic challenges continuing to impact end-client sentiment, the diamond industry remains cautious heading into summer," De Beers Chief Executive Al Cook said.

JCK is the jewellery industry trade event that takes place in Las Vegas.

"Reflecting this, we saw demand for De Beers rough diamonds during the fifth sales cycle of the year slightly softer than in the fourth cycle," Cook said.

Anglo American owns 85% of diamond miner and dealer De Beers.

By Artwell Dlamini, Alliance News reporter

Comments and questions to [e-mail]

[tuftymatt] 13/6/2023 10:00

China stimulus talk helping AAL and the mining sector today 👍🏻

I think 2400 is a crazy number and am confident that adding here will see a decent return for the patient when we get back to 3000+

[philanderer] 13/6/2023 09:18

Oddo BHF cuts Anglo American to 'underperform' - price target 2,400 pence

[tuftymatt] 06/6/2023 10:00

While that's a positive it would only see the share price back at where it was 2 months ago.

I am hopeful we can see the 3000's again but in this market holding 2400 is priority number one as that stability is the first step.

Good luck all 👍🏻

[philanderer] 06/6/2023 09:50

RBC raises Anglo American to 'outperform' (sector perform) - price target 2,700 (2,500) pence

[tempted] 05/6/2023 12:18

Investing.com sending incorrect notifications on AAL

[fuji99] 26/5/2023 09:12

You're welcome EBB.

[eggbaconandbubble] 26/5/2023 08:45

Thanks Fuji, Good article. Not unusual for projects to encounter unexpected issues and costs. Expect more but in the long run this will be a supersized cash cow.

[fuji99] 26/5/2023 08:16

Here it is -
.

Anglo American takes $1.7bn writedown on Yorkshire fertiliser mine
Mining group extends cost and timeframe estimates for bringing Woodsmith project into production by 2027

Harry Dempsey in London FEBRUARY 23 2023
19
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Anglo American has taken a $1.7bn impairment on the North Yorkshire fertiliser project it saved from collapse three years ago, as the group announced a higher budget and extended schedule for the UK’s largest new mining development in decades.

The FTSE 100 group recorded the writedown after estimating that it would cost $1bn a year to bring the Woodsmith mine into production by 2027, both higher expenditure and a longer timeframe than previously expected.

Anglo rescued Woodsmith’s parent Sirius Minerals, which had been struggling to raise the billions of dollars needed to build the mine by 2024, for £405mn in 2020.

Woodsmith is a complex project involving the sinking of two 1.6km shafts to access a deposit of polyhalite — a mineral that can be used as fertiliser but is not yet commercially proved — and the construction of a 37km tunnel to transport material to a port on Teesside.

Anglo has earmarked $6.1bn of capital expenditure for the fertiliser project — with $1.35bn already spent and a further $4.8bn planned by the end of 2027 — on top of the $1.4bn Sirius spent on the project.

The company in December flagged a potential writedown on the carrying value of Woodsmith, which has now been reduced to $900mn, as it seeks to produce larger volumes of material.

Anglo aims to produce 5mn tonnes of polyhalite by 2030 but has increased the design capacity for the mine from 10mn tonnes a year to 13mn, with a possible mine life exceeding 50 years.

The company could reach maximum production capacity in the early 2030s if demand for its product is strong enough. The capital expenditure intensity for that stage is expected to be a third of what it will take to get to 5mn tonnes.

“We have taken a writedown on it now as the timeline and budget have been extended,” said Anglo’s chief executive Duncan Wanblad. “Be in no doubt we are setting Woodsmith up to generate cash flows for many, many decades.”

Tobias Wagner, senior credit officer at Moody’s Investors Services, said the “meaningful investment” in Woodsmith adds to “already significant investment plans” at Anglo but the company’s balance sheet would remain solid.

Even though polyhalite is a new product to the fertiliser market, Wanblad said it was modelling the project economics on a price of $190 a tonne versus more than $300 a tonne for similar products on the market.

Alex Pearce, analyst at BMO, said the writedown was not a huge surprise but “there are still a number of uncertainties that need to be addressed, including the eventual market for the product, to lower the risk profile of the asset going forward”.

Wanblad told the Financial Times the company had secured supply agreements with mainly US and Brazilian customers covering future polyhalite production of more than 5mn tonnes a year and that there were also “big opportunities in China and India”.

“It’s not a traditional fertiliser today,” he said. “But it has all the traditional components of a fertiliser with four of the six core nutrients that crops need.”

Anglo on Thursday reported a 30 per cent fall in full-year underlying earnings before interest, tax, depreciation and amortisation to $14.5bn on revenues of $35.1bn, driven by lower production, as well as inflation and higher energy costs.

Its South African platinum and iron ore businesses have been roiled by the country’s energy and logistics crisis, while copper production in Chile was hit by lower water availability.

Christopher LaFemina, analyst at Jefferies, described the writedown as “unhelpfulR21;.

“Anglo had not expected the challenges it has encountered in designing this project,” he said. “It is important that the company gets this project right from this point forward.”

Spending on the project will be approved by the board annually and it would be “another two or three years” before a feasibility study is put to the board for final approval, according to Wanblad.

[eggbaconandbubble] 26/5/2023 08:13

Please can you copy and paste the article. Thanks.

[fuji99] 26/5/2023 07:42

Could be the Woodsmith write-down that took effect coupled with the diamond lower sale and of course the negativity surrounding all miners.

[fuji99] 24/5/2023 09:31

US debt ceiling may be the main cause for all markets to drop:
AAL is a class stock to own in any portfolio.
.

[tuftymatt] 24/5/2023 08:38

I know what you mean VAS!!

To be honest I think today is all about UK inflation dropping but not by as much as expected. Added with the US debt ceiling / China soft growth it equals down for here and most of UK listed companies.

For me companies like AAL are long term holds that pay a divi higher than you can get in cash. I never buy big to start with and drip feed in / average down when required to do so in order not to find myself in a massive hole. That said this is almost 20% off my average right now but I will add further once the US debt ceiling has some sort of clarity.

Hang in there as the world still needs what the likes of ALL pull from the ground and over 3000 will be seen again one day 👍🏻

[vas007] 24/5/2023 07:25

Tuffy -when are we going to get off this rollercoaster ride.

[fuji99] 17/5/2023 08:09

As expected hard times are showing everywhere, particularly in luxury businesses.

"Anglo American said Wednesday that the value of rough diamond sales for De Beers' fourth sales cycle of 2023 fell to $480 million from $604 million in the prior-year's fourth cycle."

[tuftymatt] 12/5/2023 09:02

Yeah I agree it's worth north of 3200 but having chased it down a few times already I am holding back right now.

Happy to pay a bit more if sentiment shifts in favour of the sector but also happy to keep my powder dry for a better price.

Good luck all 👍🏻

[csmwssk12hu] 12/5/2023 08:47

Just checked the forward eps estimate for these and it’s £3.32 per share putting these at seven times forward earnings, so me this is now a screaming buy, historically it’s traded at 9.8 times forward earnings which leaves 40% upside to get to its average pe obviously there are times when it’s above and below that but with the average 40% above todays price which would make it 32.83 I can’t help but have a dabble

[tuftymatt] 05/5/2023 12:22

It's a positive I guess and we need as many of them as we can get right now!!