| What Is Anglo American’s Strategy on Operational Discipline? | |
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Anglo American's New Survival Strategy: What Do Investors Think? (Continued from Prior Part) Operational discipline
To weather the depressed commodity price environment, Anglo American (AAUKY) embarked on cost and productivity improvements starting in 2013. The company had set a target of $3.7 billion for cost improvements from 2013 to 2017, out of which $1.6 billion was delivered up to the end of 2015.
Anglo American will focus on achieving further $2.1 billion in improvements in 2016 and 2017.
Key focus points
For 2016, Anglo American has a target of $1.1 billion in improvements, including productivity improvements and cost outs. The $1 billion in improvements targeted for 2017 will mainly be driven by focus on detail.
During a conference call, AAUKY ‘s management elaborated that detail related to granular execution, focus on productivity gains, and ongoing implementation of operating model principles will help to deliver improvements. The opportunities the company is focusing on include the following:
- Equipment efficiency: The management explained that they have the opportunity to reduce the maintenance cost to pack up surplus equipment and thereby to defer capital expenditure. Management gave an example of the lifecycle costing for a large whole truck. By closing the gap between industry best practice and an asset’s current performance, the company could save money.
- Drilling improvement: Management is looking for a strict change in drilling deliveries, This will be a key deliverable in 2017. The company has already started automated drilling trials to this end in 2015.
- Clean fluids: The company will spend $900 million on diesel and other hydrocarbons to ensure that they are clean. This will help it to achieve savings in diesel consumption and component loss. The benefits are estimated at $55 million per year.
Focus on cash flows
The company also maintained that its negative–cash flow assets will either be closed or sold, however, the management clarified that it will not go for a fire sale of the assets. The company has put its Snap Lake mine in Canada on extended care and maintenance and has curtailed the production from its Venetia tailing plant.
These efforts of asset optimization are not unique to Anglo American. Other miners such as Glencore (GLNCY), BHP Billiton (BHP) (BBL), Freeport-McMoran (FCX), and Rio Tinto (RIO) have also been optimizing.
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Anglo American plc
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PRODUCTEUR |
CODE : AAL.L |
ISIN : GB00B1XZS820 |
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ProfilIndicateurs de MarchéVALEUR : Projets & res.Communiqués de PresseRapport annuelRISQUE : Profile actifsContactez la cie |
Anglo American est une société de production minière de nickel et de zinc basée au Royaume-Uni. Anglo American est productrice de nickel, de zinc, d'argent, de chromium, de cuivre, de manganese, de molybdène, d'or, de platine, d'uranium et de zircon au Bresil, au Canada, au Chili, au Perou, au Venezuela, en Australie, en Afrique Du Sud et en Namibie, en développement de projets de charbon, de cuivre, de molybdène et d'or en Afrique Du Sud, et détient divers projets d'exploration au Bresil. Ses principaux projets en production sont RUSTENBURG SECTION, MAMATWAN, MPONENG (WESTERN DEEP NO. 1 SHAFT), TAUTONA (WESTERN DEEP NO.3 SHAFT), MARIKANA, WESSELS et PALABORA MINE AND SMELTER en Afrique Du Sud, COLLAHUASI MINE, MANTOS BLANCOS et MARICUNGA au Chili, CODEMIN au Bresil, NAVACHAB MINE et SKORPION MINE en Namibie, LOMA DE NIQUEL au Venezuela, GEMCO en Australie, QUELLAVECO au Perou et CALLINAN MINE au Canada, ses principaux projets en développement sont ZONDAGSFONTEIN et PEBBLE en Afrique Du Sud et ses principaux projets en exploration sont LISHEEN et RATHDOWNEY TREND / MOATE en Irlande, SAN FERNANDO et PINABETE au Mexique, 777 PROJECT, BAY PAINE, NUVILIK, MUSKOX, RIVER VALLEY, RAGLAN / BELANGER et WEST RAGLAN au Canada, BOYONGAN (NORTH) aux Philippines, RAKKURIJARVI en Suede, ATASPACA et ANTAY au Perou, KOLWEZI en Republique Democratique Du Congo, SALOBO et ARIPUANA / AREX au Bresil, PLATREEF et SPITZKOP ZINC en Afrique Du Sud et ZAMBEZI en Zambie. Anglo American est cotée au Royaume-Uni, aux Etats-Unis D'Amerique et en Allemagne. Sa capitalisation boursière aujourd'hui est 3 066,7 milliards GBX (3 585,6 milliards US$, 3 364,0 milliards €). La valeur de son action a atteint son plus bas niveau récent le 12 mai 2017 à 1 001,00 GBX, et son plus haut niveau récent le 18 avril 2024 à 2 182,00 GBX. Anglo American possède 1 405 465 000 actions en circulation. |