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Anglo American PLC AAL

Rating as of

Morningstar’s Analysis

Valuation
Currency in GBX
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1-Star Price

PREMIUM

5-Star Price

PREMIUM

Economic Moat

PREMIUM

Stewardship

PREMIUM

Balance Sheets for the Miners Generally Looking Solid Heading into the Downturn

Analyst Note

| Mathew Hodge, CFA |

In response to the disruption in markets and the significant sell-off in equity prices, we now see the Australian and major global mining stocks we cover as being generally undervalued. Based on the prices at close on March 17, our coverage is nearly 20% undervalued on average. This compares with our last sector update in January when we saw our coverage as being about 10% overvalued on average, based on share prices from Jan. 15. The coal and base metals-focused miners are generally most undervalued. We still see overvaluation among the iron ore-exposed miners, namely Fortescue and Rio Tinto, given the iron ore price remains elevated.

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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, 2020
Stock Type
Employees 63,000