Anglo American (AAL)

Sector:

Mining

Index:

FTSE 100

2,912.00p
   
  • Change Today:
      32.50p
  • 52 Week High: 3,444.00
  • 52 Week Low: 1,796.40
  • Currency: UK Pounds
  • Shares Issued: 1,352.13m
  • Volume: 2,857,386
  • Market Cap: £39,374m
  • RiskGrade: 209

Jefferies stays at 'buy' on Anglo American despite headwinds from Chinese housing

By Alexander Bueso

Date: Friday 17 Sep 2021

LONDON (ShareCast) - (Sharecast News) - Analysts at Jefferies reiterated their 'buy' recommendation for shares of Anglo American following investor meetings with the miner's boss, Mark Cutifani, its finance director, Stephen Pearce, and its head of investor relations, Paul Galloway.
"The overall message from Anglo is that the company is operating well and is on track to deliver its key growth projects on time," they said.

So despite recent headwinds from a collapse in iron ore and precious group metals' prices and a weaker economy in China, they expected the shares would recover through 2022.

They also stood by their 4,000.0p target price on the stock, implying 40% potential upside on a 12-month horizon.

According to Anglo's management, the economic environment in China was much like in 2015, with the housing market in decline as Beijing tried to rebalance the economy.

But now, as in 2015, more accomodative policies were likely to follow in order to avoid social unrest, although this time around Anglo belived that would take time.

Hence the company's forecasts for a rebound in metals' prices in the front half of 2022.

Worth noting in that regard, historically housing had been a good lead indicator for later-cycle commodities like base metals.

Regarding Cutifani's succession plans, he reportedly said that a "logical" time to retire would be after the Quellaveco greenfield copper project ramped up, likely in the second quarter of 2022.

Jefferies expected his replacement to take over in the front half of 2022 if he was an internal pick, or by the end of 2022 if he was an external one.

"Lack of clarity on succession is a modest overhang on these shares, in our view," they added.

"Anglo has a very strong balance sheet and is well positioned to weather the storm if markets weaken more than expected.

"If warranted, some spending on Woodsmith could be deferred, but the company has flexibility to manage cash flows and could even be opportunistically acquisitive if valuations materially decline (although the company believes copper assets won't be available at an implied copper price of less than $5/lb, even in a deeper downturn)."

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Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

Note 2: RiskGrade figures are provided by RiskMetrics.

 

Anglo American Market Data

Currency UK Pounds
Share Price 2,912.00p
Change Today 32.50p
% Change 1.13 %
52 Week High 3,444.00
52 Week Low 1,796.40
Volume 2,857,386
Shares Issued 1,352.13m
Market Cap £39,374m
RiskGrade 209

Anglo American Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
99.37% above the market average99.37% above the market average99.37% above the market average99.37% above the market average99.37% above the market average
100.00% above the sector average100.00% above the sector average100.00% above the sector average100.00% above the sector average100.00% above the sector average
Price Trend
30.42% above the market average30.42% above the market average30.42% above the market average30.42% above the market average30.42% above the market average
48.09% above the sector average48.09% above the sector average48.09% above the sector average48.09% above the sector average48.09% above the sector average
Income
93.04% above the market average93.04% above the market average93.04% above the market average93.04% above the market average93.04% above the market average
73.91% above the sector average73.91% above the sector average73.91% above the sector average73.91% above the sector average73.91% above the sector average
Growth
12.33% above the market average12.33% above the market average12.33% above the market average12.33% above the market average12.33% above the market average
70.49% below the sector average70.49% below the sector average70.49% below the sector average70.49% below the sector average70.49% below the sector average

What The Brokers Say

Strong Buy 12
Buy 2
Neutral 5
Sell 0
Strong Sell 2
Total 21
buy
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

Anglo American Dividends

  Latest Previous
  Special Interim
Ex-Div 19-Aug-21 19-Aug-21
Paid 24-Sep-21 24-Sep-21
Amount 80.00¢ 171.00¢

Trades for 15-Oct-2021

Time Volume / Share Price
16:39 1,000 @ 2,912.00p
16:39 2,000 @ 2,912.00p
16:37 952 @ 2,912.00p
16:35 1,651 @ 2,912.00p
16:35 349 @ 2,912.00p

Anglo American Key Personnel

CEO Mark Cutifani
Finance Director Stephen Pearce
Chair Stuart J Chambers

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