Santiago Domingo Cebrián of Magallanes Value Investors presented his thesis on Anglo American (UK: AAL) at European Investing Summit 2024, held from October 29-31.
Thesis Summary
Anglo American is a global diversified mining company with South African roots. It is active in copper, PGMs, iron ore, met coal, diamonds, nickel and manganese, and crop nutrients projects, with best-in-class assets.
Anglo’s copper assets are located in the best jurisdictions, have some of the lowest cash costs, and long mine lives. In iron ore, Anglo owns 70% of South Africa-listed Kumba, which operates two open-pit mines and is a low-cost producer; and 100% of Minas-Rio, a tier-one open-pit mine and one of the largest iron ore mines in Brazil. Anglo is tranforming the portfolio toward three assets–copper, iron ore, and crop nutrients.
The company has a reasonable net debt position of 1x EBITDA. BHP’s proposal to acquire Anglo, while rejected by the company, hints at potential value realization from M&A or via other strategic options.
Slide Presentation
Augmented Transcript
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