Anglo American is a global mining company operating in Africa, Australia, South America, North America, and Europe. Anglo American has a diverse portfolio of mining assets, including diamonds, copper, platinum group metals, iron ore, coal, and nickel, as well as zinc and lead as by-products. Anglo American operates via several subsidiaries, including two publicly traded companies – iron ore producer Kumba Iron Ore and PGM producer Anglo American Platinum. Anglo American is the world’s third-largest exporter of steelmaking coal servicing clients in Asia, Europe, and South America. Assets include the Morabah and Grosvenor (both 88% ownership) in Queensland, Australia. De Beers, a diamond mining subsidiary of Anglo American, is a producer of one-third of rough diamonds globally. Anglo American Platinum, a PGM subsidiary of Anglo American is the largest global producer of platinum group meta... Anglo American is a global mining company operating in Africa, Australia, South America, North America, and Europe. Anglo American has a diverse portfolio of mining assets, including diamonds, copper, platinum group metals, iron ore, coal, and nickel, as well as zinc and lead as by-products. Anglo American operates via several subsidiaries, including two publicly traded companies – iron ore producer Kumba Iron Ore and PGM producer Anglo American Platinum. Anglo American is the world’s third-largest exporter of steelmaking coal servicing clients in Asia, Europe, and South America. Assets include the Morabah and Grosvenor (both 88% ownership) in Queensland, Australia. De Beers, a diamond mining subsidiary of Anglo American, is a producer of one-third of rough diamonds globally. Anglo American Platinum, a PGM subsidiary of Anglo American is the largest global producer of platinum group metals, including 5E and gold. Anglo American generates 30% of its EBITDA from PGM segment, 24% from iron ore sales, 19% from coal sales in 2022.
Anglo American PLC is a UK-based mining company. The company has a portfolio of mining operations with a focus on diamonds, copper, platinum group metals, iron ore, coal, nickel, and manganese. The company's segments include De Beers, Copper, Platinum Group Metals (PGMs), Iron Ore, Metallurgical Coal, Nickel, Manganese and Crop Nutrients, and Corporate. De Beers is engaged in the diamond business, which offers rough and polished diamonds. PGMs segment includes platinum, palladium, rhodium, iridium, ruthenium, and osmium. Iron Ore operations provide customers with iron content ore through assets in Brazil and South Africa. Metallurgical Coal is an exporter of metallurgical coal for steelmakin... Anglo American PLC is a UK-based mining company. The company has a portfolio of mining operations with a focus on diamonds, copper, platinum group metals, iron ore, coal, nickel, and manganese. The company's segments include De Beers, Copper, Platinum Group Metals (PGMs), Iron Ore, Metallurgical Coal, Nickel, Manganese and Crop Nutrients, and Corporate. De Beers is engaged in the diamond business, which offers rough and polished diamonds. PGMs segment includes platinum, palladium, rhodium, iridium, ruthenium, and osmium. Iron Ore operations provide customers with iron content ore through assets in Brazil and South Africa. Metallurgical Coal is an exporter of metallurgical coal for steelmaking and serves customers throughout Asia, Europe, and South America. The company is managing operations in Chile, Peru, Brazil, South Africa, Botswana & Namibia, Australia, and others. Copper is the largest segment in terms of copper equivalent production volume, followed by PGM, steelmaking coal, iron ore, diamonds, and nickel.
The demand for PGM is expected to grow in 2023. The autocatalyst demand for PGM may rise by 3-5% as light vehicle production constraints continue to ease, and non-PGM battery-electric vehicle production will show moderate growth. Automotive catalysts account for 65% of the global PGM demand. Loadings will rise at a modest rate driven by greater hybridization, mostly around 2025 when vehicle emission standards become tougher with Euro 7 introduced globally. The platinum demand will be supported by the substitution for palladium in gasoline catalysts.According to World Platinum Investment Council, the platinum market is forecast to move to a material deficit in 2023 after two years of surpluses. The surplus was 776koz in 2022 while the deficit may reach 556koz in 2023 as the mining and recycling supply is weak. The demand is expected to increase by 24% in 2023 mainly coming from platinum for palladium substitution in automotive applications, robust bar and coin demand, and glass capacity additions.
- Anglo American has a world-class resource base supporting its production growth profile
- The large scale of iron ore and copper operations, as well as PGM, helps the company to maintain a relatively good cash curve position vs peers
- Anglo American exited the thermal coal business to focuses on sustainable products
- The company declared a dividend policy with a 40% payout ratio, with higher dividends paid when the industry is high in the cycle.
- The company benefits from a stable financial position and relatively high margins through the cycle.
- The company is exposed to volitive base metals and iron ore prices
- Steelmaking business was weak in 2022 due to lockdowns and slow real estate business performance in China
- The company has production in Latin America and Africa, where the political and regulatory situation may be unstable, and exposed to FX risk in countries of presence
- Social and environmental problems in producing regions may cause financial losses
- Growing inflation and soaring production costs negatively affect the margin
- Geopolitical risks
- Mining risks
- Risk of failure to replace a depleted resource base
- High product price volatility
- Social instability risks in emerging markets where the company has a presence
| Company | RIC | Market Capitalization, $mn | Last reporting year | P/E Fwd 1Y | P/E Fwd 2Y | EV/EBITDA 1Y fwd | EV/EBITDA 2Y fwd | EV/Revenues 1y fwd | EV/Revenues 2y fwd |
|---|---|---|---|---|---|---|---|---|---|
| Anglo American PLC | AAL.L | 34,535 | 2022-12-31 | 9.4 | 8.4 | 4.5 | 4.2 | 1.5 | 1.5 |
| Rio Tinto PLC | RIO.L | 104,584 | 2022-12-31 | 9.2 | 9.4 | 4.9 | 4.8 | 2.1 | 2.2 |
| Glencore PLC | GLEN.L | 67,105 | 2022-12-31 | 9.7 | 9.5 | 5.1 | 5.2 | 0.4 | 0.4 |
| BHP Group Ltd | BHP.AX | 141,079 | 2023-06-30 | 11.7 | 11.7 | 5.9 | 5.7 | 2.9 | 2.9 |
| Antofagasta PLC | ANTO.L | 18,548 | 2022-12-31 | 26.5 | 22.7 | 7.7 | 6.5 | 3.7 | 3.4 |
| Boliden AB | BOL.ST | 7,371 | 2022-12-31 | 13.6 | 11.4 | 6.5 | 5.8 | 1.2 | 1.2 |
| 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | |
|---|---|---|---|---|---|---|---|---|---|
| Revenue | 26,243 | 27,610 | 29,870 | 25,447 | 41,554 | 35,118 | 34,980 | 36,092 | 37,192 |
| Growth | 5% | 8% | -15% | 63% | -15% | 0% | 3% | 3% | |
| EBITDA | 7,717 | 7,997 | 9,389 | 9,457 | 17,354 | 13,430 | 13,456 | 13,708 | 14,358 |
| EBITDA margin | 29.4% | 29.0% | 31.4% | 37.2% | 41.8% | 38.2% | 38.5% | 38.0% | 38.6% |
| Net income | 3,166 | 3,549 | 3,547 | 2,089 | 8,562 | 4,514 | 4,786 | 4,612 | 4,938 |
| Net margin | 12.1% | 12.9% | 11.9% | 8.2% | 20.6% | 12.9% | 13.7% | 12.8% | 13.3% |
| Net debt | 4,171 | 2,404 | 4,389 | 6,347 | 4,474 | 6,428 | 6,428 | 6,428 | 6,428 |
| MktCap | 39,185 | 44,004 | 55,050 | 52,528 | 52,528 | 52,528 | 52,528 |
Historical Multiples
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | |
|---|---|---|---|---|---|---|---|
| EV/Revenue | 1.5 | 2.0 | 1.4 | 1.7 | 1.7 | 1.6 | 1.6 |
| EV/EBITDA | 4.6 | 5.3 | 3.4 | 4.4 | 4.4 | 4.3 | 4.1 |
| P/E | 11.0 | 21.1 | 6.4 | 11.6 | 11.0 | 11.4 | 10.6 |
