Ore and More

Anglo has 194 million ounces of proven and probable PGM resources in the ground. At $1320 per ounce for platimum, this asset has in situ value of at least $200b USD. They have another 500 million ounces-plus of inferred resources. So on an in situ asset base of almost $1 trillion, they are making $2.5b [...]

So many people do really detailed models on the trees and simply miss the forest. I am going to do a 3-4 hour job on Kumba.
Anglo has stranded Kumba, because it only owns 65% of it and not all of it. When Anglo did the deal with MMX in Brazil it was done directly, without [...]

Anglo owns 45% of deBeers through an interesting holding structure, and what is amazing is how little money they make off of it. DeBeers’ market is around 50 m carats of stones per year, and makes on an EBITA basis $1.2b in margin each year. Rather a small profit on such a legendary business.
After looking [...]

Companies have value when they have control of a market, or when demand for their product or service exceeds supply. When both happen, like now, some companies get rich. I want to focus on control.
With Anglo Platinum, if they shut down their production, most modern emission control systems could not be produced. They represent Ford’s, [...]

Everyone is hunting for the elusive great white whale that will get taken out of the market, and Rio Tinto has laid down the gauntlet with Alcan. But I think the better target is Anglo.
Mining is about two things: market concentration, and market concentration. Anglo offers that in spades. It owns two businesses, platinum and [...]