Anglo American: A Diversified Commodities Play With Platinum Exposure

By Global Value Investor:This article introduces two companies in the commodity field that are undervalued based on market metrics. The first company, BP (BP), is a multinational oil and gas firm that has worldwide operations in profitable business segments, such as exploration, production, petrochemicals and distribution.

Anglo American (OTCPK:AAUKY) H1 2014 Earnings Call July 25, 2014 4:00 am ET Executives Mark Cutifani - Chief Executive Officer, Executive Director and Member of Safety & Sustainable Development Committee René Médori - Finance Director, Executive Director and Chairman of Investment Committee Duncan Graham Wanblad - Chief Executive Officer of Base Metals and Minerals

By Stephen Simpson, CFA:These are not particularly easy times for Anglo American plc (OTCPK:AAUKY). Copper prices have been holding up, but iron ore has been weak, met coal remains weak, and the company's platinum business has been hit by a major strike. Even so, Anglo's share price is within 10% of its 52-week high due in part to optimism regarding the long-term potential of the company's restructuring efforts.

DETROIT — General Motors Co posted a weaker-than-expected fourth-quarter profit on Thursday as results in North America, Asia and South America disappointed, sending shares down more than 3% in premarket trading. GM Chief Financial Officer Chuck Stevens said the miss occurred because analysts did not fully account for restructuring relating to plans to close the Bochum, Germany plant later in the year, as well as a higher-than-expected tax rate.

Anglo American plc (ADR) (AAUKY.PK) H1 2013 Earnings Call July 26, 2013 4:00 am ET Executives Mark Cutifani - Chief Executive and Director René Médori - Finance Director, Executive Director and Chairman of Investment Committee Analysts Des Kilalea - RBC Capital Markets, LLC, Research Division Jason Fairclough - BofA Merrill Lynch, Research Division Anthony Robson - BMO Capital Markets Canada

MELBOURNE— Rio Tinto rejected a merger approach from smaller rival Glencore Plc to create a $160 billion mining and trading giant in August just as the price of its most profitable product, iron ore, hit a five-year low. The miner said on Tuesday Glencore had contacted it about a potential merger in July, adding that it turned Glencore down in August and there had been no further contact between the companies on a deal. A merger would have created the world’s biggest miner, supplanting BHP Billiton.

Shares of Anglo American Plc. (ADR)(AAUKY) jumped 3.69% to $13.94 on Friday, July 25, when its CEO, Mark Cutifani, showed faith in the company’s recent turnaround strategies, which will deliver positive results over the next two years despite depressed commodity prices.