ANGLO AMERICAN: The world is "devouring" copper...!

...and the restructuring measures of the commodities group ANGLO AMERICAN are flourishing in exemplary fashion. The sale of ANGLO AMERICAN's coal assets to the US group Peabody Energy, for example, can be described as transformative (fundamental qualitative change). The deal is expected to be completed in mid-2025 and will bring in a total of USD 3.8 billion. However, the payment will be staggered: an upfront payment of USD 1.695 billion in cash, followed by a further USD 625 million spread over four years, plus up to USD 1 billion in contingent payments, which are dependent on favorable future developments. And separately, USD 455 million from the sale of the Dawson Mine is still due. ANGLO-AMERICAN CEO Duncan Wanblad will also have spun off the platinum segment by around the middle of next year. Finally, the diamond business will be separated under the subsidiary De Beers. The bottom line is that the Group will focus primarily on copper, which the world is "devouring" in vast quantities. Copper is not a rare metal per se and traces of copper can be found in almost all rocks. There are still plenty of copper deposits in the world's oceans and of course on land, but much of it is only theoretically recoverable. According to forecasts - please take this with a grain of salt - copper demand is expected to be around 50 million tons per year by 2035; however, "only" around 20 million tons are currently being mined. The importance of recycling therefore remains high. "What will the world do when there are no more raw materials one day?"

The share is currently being upgraded by most investment firms because the added value of the restructuring is being recognized and because operating performance is also likely to improve. ANGLO AMERICAN is currently estimated to have a P/E ratio of 12.7x and the sum-of-the-parts (SoTP) analysis points to higher prices, although a new offer from BHP has not yet been made. Target price is GBP 31.50!