Earnings Alerts

Anglo American (AAL) Earnings: Copper Production Steady with Updated 2025 Forecasts

By February 6, 2025 No Comments
  • Anglo American maintains its 2025 copper production forecast, estimating output between 690,000 and 750,000 tons.
  • Diamond production guidance has been revised to 20 million to 23 million carats, down from a previous forecast of 30 million to 33 million carats.
  • Iron ore production outlook remains steady at 57 million to 61 million metric tonnes.
  • Steelmaking coal production for 2025 is forecasted at 10 million to 12 million tons, down from earlier estimates of 17 million to 19 million tons.
  • In the fourth quarter, diamond production was 5.83 million carats, exceeding the estimate of 4.63 million carats.
  • Copper production in the fourth quarter reached 197,500 tons, surpassing the estimate of 191,414 tons.
  • Platinum Group Metals production for the fourth quarter was slightly below expectations at 876,000 ounces, against an estimate of 877,104 ounces.
  • The company expects growth in copper production by 2026, driven by higher grades in Chile.
  • Anglo American is making significant progress in simplifying its portfolio, with the nickel business sale process advancing well.
  • Preparations are ongoing for the potential separation of the De Beers business.
  • De Beers has reduced its diamond production guidance for 2025 and 2026 to focus on value, working capital efficiency, and cash generation amid challenging market conditions.
  • Analyst ratings for Anglo American are balanced with 8 ‘buy’ recommendations, 8 ‘hold’, and 5 ‘sell’.

Anglo American on Smartkarma

Analyst coverage on Smartkarma by Charlotte van Tiddens, CFA, sheds light on the upcoming JSE Sep24 rebalance affecting companies like Anglo American. In the report titled “JSE Sep24 Rebal: Foreign Inward Listings Amongst Top Sells, PPH to Enter Top 40, AMS to Be Deleted,” the sentiment leans bearish. The research outlines the top buys and sells anticipated for the JSE September rebalance, with Anglo American potentially facing changes due to a decline in the local free float. The report also mentions PPH’s entry into the Top 40 index and AMS’s potential removal from the list, indicating significant movements in the market.

Charlotte’s insights provide a detailed overview of the impending rebalance, including shifts in the ALSI index with additions like PHP & PMR and exclusions like THA & TCP. The report also highlights the impact on indices like Naspers and Prosus, with hedgers and passives expected to take different positions based on the index they are tracking. This informed analysis by Charlotte van Tiddens, CFA, offers valuable perspectives for investors looking to navigate the upcoming changes in the market affecting companies such as Anglo American.


A look at Anglo American Smart Scores

FactorScoreMagnitude
Value3
Dividend3
Growth2
Resilience3
Momentum3
OVERALL SMART SCORE2.8

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

Analysts using Smartkarma Smart Scores have assessed Anglo American PLC’s long-term outlook based on factors like Value, Dividend, Growth, Resilience, and Momentum. With balanced scores in Value, Dividend, Resilience, and Momentum, Anglo American seems positioned steadily for the future. The company’s diversified mining portfolio including bulk commodities, base metals, and precious metals across various continents provides a robust foundation for growth and resilience.

However, the lower score in Growth may indicate potential challenges in expanding operations in the near future for Anglo American. Despite this, the company’s established presence in key mining regions and its consistent dividend payouts suggest a stable investment with a promising outlook overall.


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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