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.

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-Australian mining giant BHP Billiton on Tuesday raised its iron ore production forecast after operations in Western Australia achieved record output in July-September. The world's biggest diversified miner said overall production for all commodities had increased 11 percent year on year in the three months to September 30. The upbeat numbers sent BHP's share price up 2.35 percent to close at Aus$37.05.

Bankers trying to move a mountain of mining assets for sale are being tested to the limit by unreliable buyers, stubborn sellers and a widening gap between them that has already caused billions of dollars’ worth of deals to be shelved.

Goldman Sachs said it was focusing on single-stock buying opportunities in the mining sector as it does not see any strong catalyst for a sector-wide turnaround at a time when commodity prices are languishing. Goldman Sachs said its negative outlook on the mining sector was reinforced by expectations of a weaker Chinese economy and lower iron ore and copper prices.

Trefis submits: Cliffs Natural Resources (NYSE:CLF) holds the distinction of being the largest producer of iron ore pellets in North America – a position it reinforced with the acquisition of Consolidated Thompson Iron Mines recently.