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Highlights

  • Anglo American owns a portfolio of mining operations, processing facilities and undeveloped resources
  • In FY23, the company recorded more than 12% YoY decline in revenue and over 31% YoY dip in underlying EBITDA
  • On 3 April 2024, AAL shares closed 54% higher at GBX 2,048 apiece

Anglo American PLC (LSE: AAL) is a mining firm listed on the FTSE 100 index. The company owns a portfolio of mining operations, processing facilities and undeveloped resources.

In the financial year 2023 (FY23) ended 31 December 2023, the company recorded a 12.72% YoY fall in revenue to USD 30,652 million and a 31.30% YoY decline in underlying EBITDA to USD 9,958 million.

This decline was primarily due to lower sales attributed to contracted industrial performance from 2022-23. In FY23, total sales volume of Rough Diamond decreased by 19% to 24.7 million carats. Additionally, unit costs increased up to 71/ct due to lower production volumes from Venetia, leading to a lower average realised price.

Recent business update

On 29 February 2024, the company informed that its jointly owned renewable energy venture – EDF Renewables had completed project financing for wind and solar projects in South Africa. This development makes AAL an electricity supplier in the region.

In another update on 22 February 2024,  the company announced its collboration with Vale SA to acquire and integrate the high-quality iron ore deposit, Serpentina. Anglo American is expected to be involved in any future operations and expansions associated with Serpentina.

Outlook

From 2024 to 2026, AAL aims to reduce annual costs by approximately USD 1 billion and capital expenditures by USD 1.6 billion. The company also targets mining ~ 25,000 tonnes of copper over the next five years.

Share performance of AAL

AAL shares closed 1.54% higher at GBX 2,048 apiece on 3 April 2024. Over the past year, AAL’s share price has dropped by nearly 20.34%, while in the last three months, it has gained 11.01%.

The 52-week high for AAL is GBX 2,815.50, recorded on 18 April 2023, while the 52-week low is GBX 1,630, recorded on 8 December 2023.

AAL, Daily Technical price Chart, Source: EODHD/Others; Analysis: Kalkine Group

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is April 03, 2024. The reference data in this report has been partly sourced from EODHD/Others.