Anglo American is a global mining company with operations across Africa, Australia, South America, North America, and Europe. Its diverse portfolio includes diamonds, copper, platinum group metals (PGMs), iron ore, coal, nickel, and by-products such as zinc and lead. The company operates through several subsidiaries. Its two subsidiaries, Kumba Iron Ore and Anglo American Platinum, are publicly traded entities. Kumba Iron Ore: Anglo American holds a 63.4% stake in Kumba Iron Ore, a leading supplier of high-quality iron ore to the global steel industry. Anglo American Platinum: As the world's largest primary producer of PGMs, Anglo American Platinum operates extensive mining and processing facilities in South Africa's Bushveld Complex and Zimbabwe's Great Dyke. Steelmaking Coal Operations: Anglo American was among the top exporters of steelmaking coal, serving clients in Asia, Europe, a... Anglo American is a global mining company with operations across Africa, Australia, South America, North America, and Europe. Its diverse portfolio includes diamonds, copper, platinum group metals (PGMs), iron ore, coal, nickel, and by-products such as zinc and lead. The company operates through several subsidiaries. Its two subsidiaries, Kumba Iron Ore and Anglo American Platinum, are publicly traded entities. Kumba Iron Ore: Anglo American holds a 63.4% stake in Kumba Iron Ore, a leading supplier of high-quality iron ore to the global steel industry. Anglo American Platinum: As the world's largest primary producer of PGMs, Anglo American Platinum operates extensive mining and processing facilities in South Africa's Bushveld Complex and Zimbabwe's Great Dyke. Steelmaking Coal Operations: Anglo American was among the top exporters of steelmaking coal, serving clients in Asia, Europe, and South America. Its assets included the Moranbah North and Grosvenor mines in Queensland, Australia, each with an 88% ownership stake. De Beers: A subsidiary of Anglo American, De Beers is responsible for approximately one-third of global rough diamond production. Anglo American's strategic restructuring reflects its commitment to focusing on core commodities and adapting to evolving market dynamics. AAL targets 1mtps of copper production by 2030.
Anglo American PLC is a UK-based mining company with a diverse portfolio of operations focused on diamonds, copper, platinum group metals (PGMs), iron ore, coal, nickel, manganese, and crop nutrients. The company’s business is organized into several segments, including De Beers, Copper, Platinum Group Metals (PGMs), Iron Ore, Metallurgical Coal, Nickel, Manganese and Crop Nutrients, and Corporate. The De Beers segment specializes in the diamond business, offering both rough and polished diamonds. The PGMs segment includes a range of platinum group metals: platinum, palladium, rhodium, iridium, ruthenium, and osmium. The Iron Ore segment supplies high-grade iron ore from assets in Brazil and... Anglo American PLC is a UK-based mining company with a diverse portfolio of operations focused on diamonds, copper, platinum group metals (PGMs), iron ore, coal, nickel, manganese, and crop nutrients. The company’s business is organized into several segments, including De Beers, Copper, Platinum Group Metals (PGMs), Iron Ore, Metallurgical Coal, Nickel, Manganese and Crop Nutrients, and Corporate. The De Beers segment specializes in the diamond business, offering both rough and polished diamonds. The PGMs segment includes a range of platinum group metals: platinum, palladium, rhodium, iridium, ruthenium, and osmium. The Iron Ore segment supplies high-grade iron ore from assets in Brazil and South Africa. Metallurgical Coal focuses on exporting coal for steelmaking, serving customers across Asia, Europe, and South America. Anglo American operates in multiple countries, including Chile, Peru, Brazil, South Africa, Botswana, Namibia, and Australia, among others. Copper represents the largest segment in terms of copper-equivalent production volume, followed by PGMs, steelmaking coal, iron ore, diamonds, and nickel.
The demand for platinum group metals (PGMs) remained relatively stable in 2023. Looking ahead to 2025-2026, automotive catalyst demand for PGMs is projected to increase by 3-5% annually. This growth is attributed to the easing of light vehicle production constraints and the moderate expansion of non-PGM battery-electric vehicle production. Automotive catalysts currently account for approximately 65% of global PGM demand. The introduction of stricter vehicle emission standards, such as Euro 7, is expected to drive a modest increase in PGM loadings, particularly around 2025. These regulations will necessitate enhanced emission control technologies, thereby boosting PGM usage in catalytic converters. Additionally, the substitution of platinum for palladium in gasoline catalysts is anticipated to support platinum demand, as manufacturers seek cost-effective alternatives. While the automotive sector continues to be a significant driver of PGM demand, the evolving regulatory landscape and technological advancements will play crucial roles in shaping future demand dynamics.
- Anglo American plc is a leading global mining company with a robust resource base that underpins its production growth. The company's large-scale operations in iron ore, copper, and platinum group metals (PGMs) position it favorably on the cash cost curve relative to its peers.
- In line with its commitment to sustainability, Anglo American has strategically exited the thermal coal sector.
- Anglo American maintains a dividend policy with a payout ratio of 40% of underlying earnings. The company has a history of supplementing this base dividend with additional returns to shareholders during periods of strong financial performance.
- The company's diversified portfolio and operational efficiency contribute to a stable financial position, enabling it to sustain relatively high margins throughout market cycles. This financial resilience supports ongoing investments in growth and shareholder returns.
- Anglo American's strategic focus on core commodities, commitment to sustainability, and disciplined financial management underpin its strong position in the global mining industry.
- The company is exposed to the volatility of base metal and iron ore prices.
- The steelmaking business was weak in 2022 due to lockdowns and a slowdown in the real estate sector in China.
- The company operates in Latin America and Africa, where political and regulatory environments may be unstable, exposing it to foreign exchange (FX) risks in these regions.
- Social and environmental challenges in production areas may result in financial losses.
- Rising inflation and increasing production costs have negatively impacted profit margins.
- Geopolitical Risks: The company faces challenges arising from political instability and geopolitical tensions in the regions where it operates.
- Mining Risks: Operational hazards, such as accidents, equipment failure, and geological uncertainties, pose significant risks to the company’s mining activities.
- Resource Base Depletion: There is a risk of failing to replace depleted resources, which could impact long-term production and profitability.
- High Product Price Volatility: Fluctuations in commodity prices can significantly affect the company’s revenue and margins.
- Social Instability Risks: Operating in emerging markets exposes the company to risks associated with social unrest, labor strikes, and local conflicts, which may disrupt operations.
| 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 | 42,495 | 2023-12-31 | 17.6 | 16.6 | 6.6 | 6.3 | 2.1 | 2.3 |
| Rio Tinto PLC | RIO.L | 108,382 | 2023-12-31 | 9.4 | 9.4 | 4.9 | 4.8 | 2.2 | 2.2 |
| Glencore PLC | GLEN.L | 58,463 | 2023-12-31 | 15.0 | 11.6 | 5.6 | 4.7 | 0.3 | 0.3 |
| BHP Group Ltd | BHP.AX | 135,030 | 2024-06-30 | 11.4 | 11.6 | 5.4 | 5.4 | 2.8 | 2.8 |
| Antofagasta PLC | ANTO.L | 21,853 | 2023-12-31 | 29.9 | 22.6 | 7.5 | 6.4 | 3.8 | 3.5 |
| Boliden AB | BOL.ST | 8,439 | 2023-12-31 | 10.0 | 11.6 | 5.8 | 5.9 | 1.2 | 1.2 |
| 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | 26,243 | 27,610 | 29,870 | 25,447 | 41,547 | 35,127 | 32,502 | 28,128 | 27,831 | 29,189 |
| Growth | 5% | 8% | -15% | 63% | -15% | -7% | -13% | -1% | 5% | |
| EBITDA | 7,717 | 7,997 | 9,389 | 9,457 | 20,199 | 14,495 | 9,958 | 9,103 | 9,569 | 10,688 |
| EBITDA margin | 29.4% | 29.0% | 31.4% | 37.2% | 48.6% | 41.3% | 30.6% | 32.4% | 34.4% | 36.6% |
| Net income | 3,166 | 3,549 | 3,547 | 2,089 | 8,562 | 4,514 | 283 | 2,015 | 2,508 | 3,346 |
| Net margin | 12.1% | 12.9% | 11.9% | 8.2% | 20.6% | 12.9% | 0.9% | 7.2% | 9.0% | 11.5% |
| Net debt | 4,171 | 2,404 | 4,389 | 6,347 | 4,474 | 6,428 | 10,824 | 6,428 | 6,428 | 6,428 |
| MktCap | 39,185 | 44,004 | 55,050 | 52,528 | 52,528 | 52,528 | 52,528 | 52,528 |
Historical Multiples
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | |
|---|---|---|---|---|---|---|---|---|
| EV/Revenue | 1.5 | 2.0 | 1.4 | 1.7 | 1.9 | 2.1 | 2.1 | 2.0 |
| EV/EBITDA | 4.6 | 5.3 | 2.9 | 4.1 | 6.4 | 6.5 | 6.2 | 5.5 |
| P/E | 11.0 | 21.1 | 6.4 | 11.6 | 185.6 | 26.1 | 20.9 | 15.7 |
