Driven by across the board price tailwinds, Anglo American has achieved its best operating profits since 2013. Consequently, net debt reduced significantly (-41% vs. 2016-end). However, higher unit costs and sombre production levels in 2018 are likely to cap further gains and an earnings correction should get underway (2019 onwards) as prices revert to normalised levels. Remember, the recent earnings improvements were to a great extent driven by coal and iron ore – where the markets rem
10 Apr 2018
Healthy results, but optimism seems overdone
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Healthy results, but optimism seems overdone
Anglo American plc (AAL:LON) | 2,145 697 1.5% | Mkt Cap: 28,688m
- Published:
10 Apr 2018 -
Author:
Varun Sikka -
Pages:
4
Driven by across the board price tailwinds, Anglo American has achieved its best operating profits since 2013. Consequently, net debt reduced significantly (-41% vs. 2016-end). However, higher unit costs and sombre production levels in 2018 are likely to cap further gains and an earnings correction should get underway (2019 onwards) as prices revert to normalised levels. Remember, the recent earnings improvements were to a great extent driven by coal and iron ore – where the markets rem