Anglo American plc is one of the worlds largest mining and natural resource groups. With its subsidiaries, joint ventures and associates, it is a global leader in platinum group metals, gold and diamonds, with significant interests in coal, base and ferrous metals, industrial minerals and paper and packaging. The group is geographically diverse, with operations in Africa, Europe, South and North America, Australia and Asia.

            Red = 25 day moving average.           Green = 200 day moving average.

SALES PER ACTIVITY (Data as of 31/12/2005)

Packaging and Paper: 23%
Ferrous metals:         20.5%
Industrial minerals:    14%
Platinum:                 12.5%
Nonferrous metals:    12%
Coal:                       9%
Gold:                       9%

Public Investment Corp, the South African pension fund manager, raises its stake to more than 11%, buying circa 8m shares in AAL.

JP Morgan Cazenove today reaffirms its underweight investment rating on Anglo American PLC (LON:AAL) and raised its price target to 450p (from 250p).

Global miner Anglo American suspended mining activities at its flagship Los Bronces copper mine and the smaller El Soldado deposit for security reasons.

StockMarketWire.com
Anglo American's production guidance for 2016 remains unchanged after solid progress in the first quarter.

Diamond production decreased by 10% to 6.9 million carats, reflecting the decision to reduce production in response to trading conditions in 2015.

Platinum production (expressed as metal in concentrate) increased by 4% to 567,000 ounces driven primarily by increases at Amandelbult and Mogalakwena. Refined platinum production decreased by 52% due to a planned stocktake and a Section 54 safety stoppage at the Precious Metals Refinery (PMR) for 12 days.

Copper production from the retained operations (excluding the AA Norte assets that were sold effective 1 September 2015) was in line with Q1 2015. Overall production decreased by 15%.

Nickel production increased by 67% to 11,200 tonnes following the successful completion of the Barro Alto furnace rebuilds.

Iron ore production from Kumba decreased by 27% to 8.9 million tonnes as Sishen is being transitioned to a lower cost pit configuration.

Iron ore production from Minas-Rio increased to 3.3 million tonnes (wet basis) as the operation continues to ramp-up. Production increased by 3% vs. Q4 2015.

Export metallurgical coal production decreased by 9% to 4.5 million tonnes due to planned longwall moves taking place at both Moranbah and Grasstree, partially offset by improved operational performance at Dawson and development coal production at Grosvenor.

Export thermal coal production decreased by 13% to 7.7 million tonnes due to planned production cuts at Cerrejon as a result of market conditions and a change in mix at Landau to higher margin domestic sales.

Chief executive Mark Cutifani said "The Q1 2016 operating results are in line with the equivalent period of 2015 on a copper equivalent basis and reflect the major restructuring programme under way and our ongoing efficiency and cost reduction strategy. They also demonstrate the market discipline we continue to show in our key markets, particularly diamonds and platinum, and are consistent with our restructuring plans as we focus on lower cost and higher margin assets.

"We are encouraged that the actions we have taken in diamonds are continuing to have a positive effect, while operational productivity continues on an upward trajectory. As a consequence of our solid progress, our production guidance for 2016 remains unchanged."

Deutsche Bank today reaffirms its hold investment rating on Anglo American PLC (LON:AAL) and raised its price target to 690p (from 515p).

AAL is retreating... I feel it has gone up too fast without much good news at all.
Fundamentals still bleak and demand for commodities has not improve.
Now 680p.

hlyeo.....I think all of the miners have gone up a little too fast. The brokers are convinced that they are overvalued atm. Not sure if they are right, as some of their price targets are way off, imo. I am trying to keep most of the miner boards up to date as they have been pretty decent investments over the last five months. Just a matter of deciding if they have hit bottom and the cycle is changing.

Sell AAL now... crashing fast.

Share price downgraded to sell by Liberum Capital to 400p

I think it's time to sell AAL at 570p now

StockMarketWire.com
Anglo American says the value of rough diamond sales for De Beers's fifth sales cycle of 2016, amounted to $560 million, compared with $636 million value of the fourth sales cycle of 2016.

De Beers Group chief executive Philippe Mellier said: "Sales in the fifth cycle of the year were somewhat lower than in the fourth cycle, in line with our expectations and typical seasonal demand patterns. Rough diamond demand and polished diamond prices remain stable, reflecting steady consumer demand, but we maintain a cautious outlook."

Credit Suisse today reaffirms its neutral investment rating on Anglo American PLC (LON:AAL) and raised its price target to 700p (from 630p).

StockMarketWire.com
Anglo American (AAL) said diamond production decreased by 19% to 6.4 million carats, reflecting the decision to reduce production in response to prevailing trading conditions in H2 2015.

Platinum production (expressed as metal in concentrate) increased by 1% to 585,700 ounces, whilst refined platinum production increased by 33% to 747,600 ounces.

This reflected the recovery at the Precious Metals Refinery after a planned stocktake and safety stoppage in Q1 2016.

HIGHLIGHTS:
- Copper production from the retained operations (excluding the AA Norte assets sold effective 1 September 2015) decreased by 8% to 144,200 tonnes. Expected lower grades and significant snowfall impacted operations at Los Bronces, albeit partly offset by plant stability improvements at Collahuasi.

- Nickel production increased by 76% to 11,100 tonnes following the successful completion of the Barro Alto furnace rebuilds in 2015.

- Iron ore production from Kumba decreased by 15% to 8.9 million tonnes as Sishen restructured (downsized) and transitioned the operations to a lower cost pit configuration.

- Iron ore production from Minas-Rio increased by 91% to 3.5 million tonnes (wet basis) as the operation continues its ramp-up.

- Export metallurgical coal production increased by 4% to 5.5 million tonnes due to first longwall production at Grosvenor in May and a longwall move at Grasstree in the prior year, partially offset by ramp-up at Moranbah after the completion of the longwall move in the prior quarter.

- Export thermal coal production decreased by 6% to 8.1 million tonnes due to ramping down production at Drayton where mining activities will cease in late 2016 and planned production cuts at Cerrejon, partly offset by higher production at most South African Export operations.

Anglo American chief executive Mark Cutifani said "The Q2 2016 operating results are in line with the equivalent period of 2015 on a copper equivalent basis.

"We are building upon the improving operational trend from the first quarter as we recover refined platinum production and continue to ramp-up Minas-Rio, Grosvenor and Barro Alto.

"We also continue to demonstrate discipline in our key markets, particularly diamonds and platinum, in line with our focus on higher margin and lower cost assets.

"The decisive actions taken by De Beers last year led to more normal trading conditions in the first half of 2016 with sales volumes increasing as a result, but we maintain a cautious outlook."

StockMarketWire.com
Anglo American reported net debt at 30 June 2016 decreased to $11.7 billion (vs. $12.9 billion as at 31 December 2015) through cost discipline and working capital and capex reductions.

HIGHLIGHTS
- Attributable free cash flow of $1.1 billion (vs. $0.2 billion in H1 2015)

- Disposal proceeds of $1.5 billion agreed and expect to be completed in H2 2016

- Group underlying EBIT(1) of $1.4 billion, a 27% decrease, due to lower commodity prices ($1.2 billion underlying EBIT impact), partially offset by weaker producer country currencies ($0.9 billion underlying EBIT benefit) and incremental cost reductions

Operating performance and associated cost and capex reductions mitigating headwinds:
- Unit costs decreased by 19% (vs. H1 2015) in US dollar terms

- Expect to deliver $1.6 billion of cost and volume improvements in 2016

- $1.9 billion target included $300 million now reclassified as capex and working capital reduction

- $0.3 billion of cost and volume improvements delivered in H1 2016

- Commodity price-driven impairment of $1.2 billion relating to Moranbah and Grosvenor coal assets contributing to a loss before tax of $364 million

RBC note today:
"Our view: With the balance sheet striding towards rehabilitation and volume improvements in H2, Anglo’s rating likely to improve. Further, divestments provide catalysts for the shares. We upgrade to Outperform, with a £10/sh Price Target.
Key points: Upgrading on positive pointers from H1: We have adjusted our forecasts post the H1 figures; this and good progress on debt, costs, capex and productivity, has led us to increase our Price Target to £10/sh. Our recommendation is upgraded to Outperform. Risks remain commodity prices, South Africa and the impact of any GBP strength on the share price.
Good H1 results: H1 results came in above consensus and our forecasts despite disappointing production from Copper (Los Bronces). Across the group there was a strong effort to control or reduce costs (helped by currencies) and capex was controlled. In H2 there should be a greater benefit on costs from volumes, productivity and cost cutting (including headcount). While there will be lower activity in diamonds for seasonality reasons, volumes in Copper, Coal and Iron Ore should improve and Anglo expects to achieve its $1.6bn annual cost reduction; it could even do better.
Balance sheet starts to look respectable: The higher level of net debt is being reeled in with $1.1bn of free cash flow in H1 contributing to the reduction from $12.9bn at end-December 2015 to $11.7m at end-June. The target remains below $10bn for the year (we calculate $9.5bn), which seems certain given after-tax proceeds of ~$1.4bn from the May sale of Phosphates & Niobium and additional internal cash generation despite the likely non-recurence of the $500m working inflow in H1 as De Beers and Kumba have no surplus inventory now. As important as the net debt target is that Anglo moved below the 2.5x goal in terms of net debt:EBITDA after adjusting for the sale of Phosphates & Niobium.
Assets sales continue: Anglo faced many questions from analysts on whether it still needed to dispose of assets given an improving balance sheet. The company reiterated its target of being only invested in Copper, Diamonds and PGMs, but did acknowledge that achieving value for assets could influence the disposal timeline. We believe the next assets likely to be sold will be the Australian metcoal mines for a price of up to $1.5bn.
Dividend returns by end-FY17: At the end of next year Anglo targets resuming dividend payments, based on a payout ratio rather than the previous “progressive” policy. We conservatively assume a payout of $0.25/sh for FY18 though success on asset sales could make our timing conservative. The message is that Anglo is confident the balance sheet and debt rating will justify resuming dividends. This is a positive message which should help mitigate Anglo’s elevated exposure to South Africa."

StockMarketWire.com
Anglo American has completed the sale of its 70% interest in the Foxleigh metallurgical coal mine in Queensland, Australia, to a consortium led by Taurus Fund Management, following the announcement of the sale and purchase agreement on 4 April.

Foxleigh is an open cut coal operation which produces high quality pulverised coal injection (PCI) coal, located in Queensland's Bowen Basin, 12 kilometres southwest of Middlemount.

Anglo American's attributable share of Foxleigh's saleable production was 1.86 million tonnes in 2015. Story

StockMarketWire.com
Anglo American says operational improvements continue across the portfolio, delivering a 4% production increase on a copper equivalent basis in the third quarter, and a 12% increase compared to Q2 2016.

Chief executive Mark Cutifani said: "The latter increase is largely due to the strong recovery at Kumba's Sishen mine, a 46% production increase, following the successful completion of its restructuring.

"In our diamond and platinum businesses we continue to maintain discipline on volumes by mining to demand, whilst the ramp-ups at Minas-Rio and Grosvenor are progressing well, and Barro Alto has now reached nameplate capacity. The modestly higher production at De Beers is reflective of improved market conditions relative to Q3 2015, but we maintain a cautious outlook."

- Diamond production increased by 4% to 6.3 million carats compared with Q3 2015 when production was reduced in response to the prevailing trading conditions.

- Platinum production (expressed as metal in concentrate) was broadly unchanged, increasing by 1% to 619,000 ounces. Refined platinum production increased by 14% to 694,700 ounces, following recovery at the Precious Metals Refinery.

- Copper production from the retained operations decreased by 9% to 139,800 tonnes. Expected lower grades at Los Bronces and the impact of strikes at Los Bronces and El Soldado, were partly offset by strong plant performance and higher grades at Collahuasi.

- Nickel production increased by 66% to 11,300 tonnes following the successful completion of the Barro Alto furnace rebuilds in 2015. - Iron ore production from Kumba increased by 3% (33% vs. Q2 2016) to 11.8 million tonnes due to productivity improvements at Sishen following its restructuring.

- Iron ore production from Minas-Rio increased by 53% to 4.5 million tonnes (wet basis) as the operation continues to ramp-up.

- Export metallurgical coal production was broadly unchanged, increasing by 1% to 5.5 million tonnes due to the ramp-up at Grosvenor and a longwall move at Moranbah in Q3 2015, offsetting geological issues at Grasstree and the sale of Foxleigh, which completed on 30 August 2016. - Export thermal coal production remained flat at 8.8 million tonnes. An increase in production at Cerrejan was offset by a ramp-down at Drayton where mining activities will cease in Q4 2016.

Macquarie today reaffirms its neutral investment rating on Anglo American PLC (LON:AAL) and set its price target at 880p.

01/12/16 - Exane BNP Paribas today upgrades its investment rating on Anglo American PLC (LON:AAL) to neutral (from underperform) and set its price target at 1250p

Credit Suisse today (07/12/16) reaffirms its neutral investment rating on Anglo American PLC (LON:AAL) and raised its price target to 1400p (from 1300p).

StockMarketWire.com
Anglo American has announced the value of rough diamond sales for De Beers's tenth sales cycle of 2016, amounting to $418 million, compared with the $476 million value of the ninth sales cycle.

De Beers chief executive Bruce Cleaver said: "We continued to see good demand for De Beers rough diamonds in our latest sales cycle. While the trade in lower value rough diamonds is experiencing a temporary slowdown as a result of the demonetisation programme in India, demand across the rest of the product mix continued to be healthy and overall sales remained in line with seasonal expectations. Pleasingly, sales were also significantly higher than those for the equivalent cycle in 2015."