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Anglo American PLC AAL

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Anglo American Basking in the Glow of High Commodity Prices, but Shares Overvalued

Mathew Hodge, CFA Regional Director

Analyst Note

| Mathew Hodge, CFA |

Anglo American’s first-half 2021 result was powered mainly by buoyant iron ore and platinum group metals prices. Near-record copper prices and a strong recovery in diamond profitability also helped. Adjusted net profit after tax of USD 5.3 billion was up substantially from USD 0.9 billion in first-half 2020 but was in line with our expectations. Our full-year 2021 net profit forecast is little changed at USD 9.2 billion. At the segment level, EBITDA nearly quadrupled to USD 12.1 billion from USD 3.4 billion a year ago. Iron ore and platinum were the heavy lifters, contributing USD 8.3 billion combined versus just USD 2.4 billion last year. Copper also nearly tripled EBITDA to USD 1.9 billion while diamonds increased to USD 0.6 billion from a break-even level last year.

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Company Profile

Business Description

Anglo American's mining portfolio spans many commodities and continents. Like fellow large diversified miners, Anglo has significant exposure to copper, coal, and iron ore, but it is unique in its significant platinum output. The company accounts for about one third of the world’s platinum supply and just over 20% of palladium supply. Anglo also owns 85% of De Beers, in most years the world's largest supplier and marketer of rough gem diamonds.

Contact
20 Carlton House Terrace
London, SW1Y 5AN, United Kingdom
T +44 2079688888
Sector Basic Materials
Industry Other Industrial Metals & Mining
Most Recent Earnings
Fiscal Year End Dec 31, 2021
Stock Type
Employees 64,000

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