Rising Copper Prices, Portfolio Review Make Underperforming Anglo American Stock A Potential Bargain: Report
Diversified miner Anglo American (OTC:NGLOY) could be a promising buy as copper prices rise and the company looks to transform itself, financial magazine Barron’s said in an article.
The company has been underperforming competitors BHP Group Ltd (NYSE:BHP), Rio Tinto (NYSE:RIO) and Glencore ADR (OTC:GLNCY) because of operational problems, a disappointing production outlook and a slump in diamond and platinum-group markets, according to the article, which ran on Friday.
Anglo said it is reviewing its assets, with CEO Duncan Wanblad saying in a conference call that “nothing is off the table” in the asset review.
Anglo’s exposure to South Africa, via stakes in platinum and iron ore operations, helped depress its stock price because of the nation’s problems with the economy, crime and power outages, Barron’s said. Meanwhile, analysts aren’t thrilled about the company’s expensive fertilizer project in England.
The company’s platinum and iron ore stakes could be spun off while it would be bullish for the stock if Anglo can bring in a partner on the fertilizer project. The article also speculated that the entire company could be sold to …
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