- Adjusted profit for Anglo American in the first half of 2024 reached $1.29 billion, surpassing the estimate of $1.07 billion.
- Adjusted earnings per share (EPS) came in at $1.06, beating the estimate of 90 cents.
- Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) was $4.98 billion, higher than the estimate of $4.51 billion.
- Total revenue reported was $14.46 billion, exceeding the expected $14.02 billion.
- Free cash flow amounted to $506 million.
- The interim dividend per share declared was 42 cents.
- Underlying EBITDA for the half year rose to $5.0 billion at a 33% EBITDA margin, despite a 10% lower product basket price, partially offset by a 4% improvement in unit costs.
- Production volumes remained broadly flat.
- There was a $1.6 billion impairment on the Woodsmith crop nutrients project due to a decision to temporarily slow down the project and delay its production timing.
- Analyst recommendations on the company’s stock: 9 buys, 11 holds, and 1 sell.
Anglo American on Smartkarma
Analyst coverage of Anglo American on Smartkarma has been extensive, with insights provided by notable analysts. Charlotte van Tiddens, CFA discussed the market’s reaction to a potential deal with BHP falling through, highlighting a 10% drop in Anglo’s share price and the extension of talks. Meanwhile, Jesus Rodriguez Aguilar noted Anglo’s rejection of BHP’s final offer, citing concerns over execution risks and value impacts. He updated his sum-of-the-parts valuation and highlighted a significant gap between BHP’s offer and the market’s implied value.
Additionally, Charlotte van Tiddens, CFA delved into the potential effects of Anglo’s restructuring or takeover by BHP on the JSE Index if Amplats and Kumba were unbundled. On the other hand, David Blennerhassett discussed BHP’s unsolicited offer for Anglo, focusing on copper assets amid rising demand for electric vehicles and renewable energy. The proposal was viewed as opportunistic by some, with uncertainties around the value of Anglo’s copper mines. Expectations are for Anglo to reject terms but stay engaged in the process.
A look at Anglo American Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 4 | |
| Growth | 2 | |
| Resilience | 3 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.2 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Anglo American PLC, a global mining company with operations across multiple continents, has been assessed using Smartkarma Smart Scores. The scores indicate the company’s overall outlook across various factors critical for investors. With a solid Dividend score of 4 and Momentum score of 4, Anglo American demonstrates strength in providing returns to shareholders and maintaining positive market momentum. However, areas such as Growth and Value score lower at 2 and 3 respectively, suggesting potential challenges in these aspects. Despite this, the company’s Resilience score of 3 implies a moderate ability to weather market fluctuations.
Looking ahead, investors should keep a close eye on Anglo American‘s strategies to improve growth and value propositions while capitalizing on its strong dividend and momentum performance. As a key player in the mining industry, Anglo American‘s diversified portfolio spanning bulk commodities, base metals, and precious metals positions it for long-term success, provided it can effectively navigate the dynamic market conditions and capitalize on growth opportunities in various regions.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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