Santiago Domingo Cebrián of Magallanes Value Investors presented his thesis on Anglo American (UK: AAL) at European Investing Summit 2024.
Thesis summary:
Anglo American is a global diversified mining company with South African roots. It is active in copper, PGMs, iron ore, met coal, diamonds, nickel and manganese, and crop nutrients projects, with best-in-class assets.
Anglo’s copper assets are located in the best jurisdictions, have some of the lowest cash costs, and long mine lives. In iron ore, Anglo owns 70% of South Africa-listed Kumba, which operates two open-pit mines and is a low-cost producer; and 100% of Minas-Rio, a tier-one open-pit mine and one of the largest iron ore mines in Brazil. Anglo is tranforming the portfolio toward three assets–copper, iron ore, and crop nutrients.
The company has a reasonable net debt position of 1x EBITDA. BHP’s proposal to acquire Anglo, while rejected by the company, hints at potential value realization from M&A or via other strategic options.
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About the instructor:
Santiago Domingo is an investment analyst at Magallanes Value Investors. Magallanes is an independent equity-only asset management firm, following value investment philosophy and controlled by its founders. Magallanes’ aim is to preserve and increase its clients’ capital by outperforming the market in the long term. Prior to Magallanes, Santiago worked as an equity portfolio manager for Solventis Asset Management, as an analyst for a start-up called OralSurgeryTube and in Endesa’s finance department. Santiago holds a Bachelor’s degree in Finance and Accounting from University of Zaragoza and a Master’s degree in Institutions and Financial Markets from CUNEF. He is a CFA charterholder.
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