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Anglo American PLC NGLOY

Rating as of

Morningstar’s Analysis

Valuation
Currency in USD
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1-Star Price

PREMIUM

5-Star Price

PREMIUM

Economic Moat

PREMIUM

Capital Allocation

PREMIUM

Iron Ore and Copper Miners in Hog Heaven but a few Pockets of Value Remain

Analyst Note

| Mathew Hodge, CFA |

Mining stocks largely traded sideways in the first quarter of 2021 with the S&P/ASX200 resources index adding just 0.2% versus 3.1% for the broader ASX 200 index. Our coverage moves from an average 25% premium to our fair value estimates in our last quarterly update to a 10% premium now. The change primarily reflects fair value increases given ongoing near-term commodity price strength, especially for iron ore and copper. Only thermal coal-exposed firms New Hope and Whitehaven are still trading in 4-star territory although Glencore, Iluka Resources, Newcrest and South32 are at modest discounts. Undervaluation from COVID-19 is a distant memory, thanks to Chinese government stimulus and lending. Iron ore and copper have benefited most.

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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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