Insight
BHP eyes Anglo American for copper growth
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*Please note that this report only includes an Excel data file if this is indicated in "What's included" below
Report summary
This document analyses the potential combination of BHP and Anglo American – including valuation, strategic rationale and synergies. All these factors will be crucial in determining whether this ambitious merger becomes a reality, potentially reshaping the landscape of the global mining sector.
Table of contents
- Potential rationalisation candidates
- Anglo American’s valuation has had a series of hits over the past year
- Production outlook curtailed amongst capital constraints
- Anglo American is trading at the highest premium to our base NAV of the Diversified Miners
- 1. BHP’s price deck is above broker consensus, while Wood Mackenzie is below
- 2. Operational synergies in copper and metallurgical coal
- 3. Unlocking PGM, diamond and metallurgical coal value through M&A
- 4. Development opportunities focussed on copper and iron ore
- BHP’s valuation is supported by the copper pipeline
- The current market valuation is close to the highest ratio of Anglo American to BHP
- Dusting off the M&A playbook
- No sacred cows
Tables and charts
This report includes the following images and tables:
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EBITDA margin (%)Capital intensity (‘000 US$/t CuEq)Timeline of company results and guidance changes
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EV /EBITDAEV / NAV premiumConsensus pricing vs Wood Mackenzie - Copper (US$/t)Consensus pricing vs Wood Mackenzie - Iron ore (US$/t)Anglo American yet-to-approve copper projectsUpside to Wood Mackenzie Base Case Valuation (US$ billion)Ratio of BHP to Anglo American enterprise value
What's included
This report contains:
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