American (AAL) Date Broker Rating Old Target New Target Change 04-Dec-13 Deutsche Buy 1,780.00 1,780.00 Reiteration
21 Oct '13
Positive Points: Record quarterly copper production of 207,300 tonnes was reported, an increase of 32% and driven by improved operating performance and grades at its Los Bronces and Collahuasi operations. Nickel production increased by 7% to 9,600 tonnes. Metallurgical coal production increased by 9%. A number of self-help initiatives and improved financial targets have been outlined by the new Chief Executive. A review of the group’s business portfolio remains ongoing. Adjustments were made under the previous CEO including the August 2012 acquisition of a 40% shareholding in De Beers and the sale of a 25.4% shareholding in Anglo American Sur to a Codelco. The interim dividend payment was maintained at 32 US cents per share. Foreign currency fluctuations, particularly in relation to the South African Rand and the US dollar, have worked in the group's favour. Speculation regarding a potential takeover has previously been rumoured. China remains the world’s biggest consumer of commodities. The world's second-largest economy grew by 7.8% in the third quarter of 2013 from a year earlier. The latest expansion was the strongest since the 7.9% growth reported for the fourth quarter of 2012.
21 Oct '13
Negative Points: Iron Ore production fell by 24%. Production at its Sishen mine was impacted by ongoing pit constraints and safety stoppages. Thermal coal production in South Africa decreased by 1%. As of its half year results, underlying or adjusted operating profit fell by 15% to $3.3 billion. Unadjusted profit for the half year attributable to equity shareholders declined by 68%. Business returns - attributable Return On Capital Employed (ROCE) – declined from 14% in H1 2012 to 11% in H1 2013. Group labour relations remained strained. Write-downs or impairments against the value of previous investments were taken as of the group’s 2012 full year results. A $4 billion post-tax impairment was taken against its Minas-Rio iron-ore project in Brazil, with expenditure on the project continuing to rise. A $0.6 billion post tax impairment was also taken against platinum projects. Given broad uncertainty over the outlook for the global economy, commodity prices remain volatile. For the first nine months of the year, the Chinese economy grew by 7.7%, keeping it on track to achieve the government's growth target of 7.5% this year, but still the worst performance for China in 23 years. Industry-wide cost pressures remain a concern. Industry-specific risks include government actions, such as controls on imports, exports and prices. Also, new forms or rates of taxation and royalties, and increased government regulation overshadow.
21 Oct '13
Third quarter production update: The miner reported mixed production output, with the share price falling by over 3% in early stockmarket trading. Iron Ore production fell by 24%. Production at its Sishen mine was impacted by ongoing pit constraints and safety stoppages. However, a plan to address the current pit constraints and a longer term operational strategy is expected to be presented by the end of the year. Export sales volumes decreased by 5%. More positively, record quarterly copper production of 207,300 tonnes was reported, an increase of 32% and driven by improved operating performance and grades at its Los Bronces and Collahuasi operations. In all, despite ongoing operational issues and uncertainty over global economic health, the relatively new CEO has announced initiatives to improve performance,
19 Oct '13
Anglo American (LON:AAL) said third-quarter copper production went up by nearly a third compared to the same period last year, reaching a quarterly record mainly thanks to improved performance at its Chile’s Collahuasi mine, a partnership with Glencore Xstrata (LON:GLEN). Production of copper, the second-most important contributor to Anglo’s balance sheet after iron ore, rose 32% to 207,300 tonnes in the three months to September, above analysts’ expectations. Collahuasi, located in Chile’s north, about 4,800 meters above sea level, more than doubled output to 63,600 tonnes in the three months. Iron ore, however, came in significantly below expectations, putting Anglo at a disadvantage when compared to Rio Tinto’s (ASX, LON: RIO) record levels reported on Tuesday. Platinum remained about the same, at 623,000 ounces, despite the recent strike affecting Anglo American Platinum (Amplats). Diamonds, meanwhile, saw production jump by more than a fifth to 7.7 million carats, as operations at Anglo's Jwaneng mine in Botswana were fully restored after a slope collapse last year. The company's mines in Canada, Snap Lake and Victor, also helped lift output thanks to their higher performance in the quarter. CEO Mark Cutifani, who took over in April as Anglo’s head, has promised to increase the miner’s returns, as the company has underperformed compared to other major mining groups.
11 Oct '13
Anglo American Platinum announces resolution of the strike action associated with the restructuring of the business..
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