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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

Capital Allocation

PREMIUM

Elevated Copper, Iron Ore Prices See Anglo American Materially Overvalued; GBX 1,920 FVE Retained

Analyst Note

| Mathew Hodge, CFA |

No-moat Anglo American’s adjusted net profit fell 10% to USD 3.1 billion, or USD 2.50 per share, but was in line with our expectations. Adjusted EBITDA of USD 9.8 billion was down 2% on last year. Stronger results from platinum group metals and iron ore, where adjusted EBITDA collectively grew 32% to USD 7.1 billion thanks to higher prices, was offset mainly by the decline in earnings from coal, which sagged with lower prices. Coal's EBITDA declined to almost zero in 2020 from USD 1.8 billion last year. Earnings from the rest of the business were flat overall.

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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