Blackwattle Investment Partners’ Post

Out of all the year ends in AGA that I have been apart of, this one was the most interesting of all. It had many firsts, the best and not so best, but in the end I found that there is a lot more to be proud of. I want to reflect on the milestones achieved that affect my role: 1. I had my very own section in one of the reports done by yours truly for the first time. 😊 2. We prepared fully designed reports on our reporting tool from start to finish for the first time, achieving a higher level of automation, collaboration and the most important of all version control that we didn't have before across our annual suite of reports. 3. We prepared an advanced UK annual report for the first time, which I believe will set a trend for many others to follow. (PS: This may be quite ambitious but a girl can dream right.) This wouldn't have been possible without the great team behind these reports both internal and external. A big thanks for making this process a successful one! #WellDone! 💯

Anglo American Accelerates Delivery of Strategy 🤔And so as expected the story of the changing fortunes of @AngloAmerican and those affiliated with the company continues. No doubt recognizing that a good offense is a better defense and EXCO preempts the company’s fate. Ironically the company is doing essentially what @BHP sought to do all be it for reasons of self-preservation. @BWGovernment is a minority stockholder in @debeersgroup and so while @AngloAmerican does not have a blank cheque, it’s clearly in the lead. Botswana might consider going on the offensive in relation to the future of De Beers like Anglo shareholders. The point being as a sovereign Botswana’s interests and considerations are vastly different from those of EXCO, South African institutional shareholders and those in the public. Just because the strategy works at corporate level does not mean it serves national economic development level. https://lnkd.in/dKJnkRjY

📢 Exciting news! Anglo American has decided to take a further £1.2bn writedown on the Yorkshire fertiliser mine. This decision shows our commitment to responsible financial management and our dedication to transparent reporting. We remain focused on long-term sustainable value creation for all our stakeholders. Read more about our journey in The Guardian article. #AngloAmerican #FinancialTransparency #SustainableValueCreation https://ift.tt/xVzlG9g

Major changes coming in from Anglo American with plans to demerge Amplats, divest or demerge from De Beers, divest from steelmaking coal and Nickel business. This will leave the company with a portfolio made up of copper, premium iron ore and crop nutrients. According to the CEO, Duncan Wanblad, Anglo "expects that a radically simpler business will deliver sustainable incremental value creation through a step change in operational performance and cost reduction". The all share proposal by BHP has really made it clear that Anglo-American needed a reshape and a relook to its businesses making up its portfolio. From an SA perspective, it will be interesting to see who the front runners will be to buy Amplats given its leadership position in the world's pgm business. https://lnkd.in/dP652RAd

Here’s How Anglo American (JSE: AGL) Makes Money💰 In April, BHP launched a takeover bid for Anglo American, offering 0.7097 BHP shares for each Anglo share. But Anglo wasn't sold. They dug in their heels, rejecting the deal and sparking a six-week public duel.⚔️ BHP sweetened the deal twice, but Anglo's shareholders remained unconvinced. In the end, Anglo emerged victorious, with CEO Duncan Wanblad's own strategy to unbundle Amplats & De Beers. As well as pulling back from a UK fertiliser minerals project & cutting net debt by selling Anglo’s coal assets in Australia. In line with the UK “put up or shut up” takeover rule, it looks like BHP has opted to shut up for the time being. This leaves them on the sidelines for six months, giving Anglo breathing room to push forward with their restructuring plans. However, this window might also present an opportunity for another player to jump in and make a surprise bid for Anglo. Will Anglo's strategy prevail or will we see a bidding war for a leaner Anglo?⛏️ Only time will tell. Designed & Written by Marvin Matabane Curious about the forces shaping South Africa's economy & financial markets⚡? Follow us at University of Johannesburg Investment Society (UJInvest) for more insights!💡 Let us know which JSE listed company you would like to see next 👇 #finance #markets #stockmarket #economy #southafrica #jse #investments #earnings #mining #angloamerican #bhp #takeover #acquisition #minerals

As widely reported, BHP Group (US$150bn market cap) recently made an all-share offer for peer, Anglo American (US$36bn market cap). In this Daily Investor article, Sameer Singh, Research Analyst at Private Clients by Old Mutual Wealth, shares his view on the rationale for the deal and while Anglo subsequently rejected the offer, Sameer believes that we are likely to see increasing interest in Anglo American from other potential suitors. Read more: https://lnkd.in/d4NdPDH7 #oldmutualwealth #privateclient #curatedwealth #beyondwealth #PrivateClientsbyOldMutualWealth

PIC MEDIA RELEASE PIC PREFERENCE ON THE PROPOSED BHP OFFER FOR ANGLO AMERICAN. PRETORIA 22 May 2024 – As a shareholder in both entities, the Public Investment Corporation (PIC) believes offers from BHP should reflect both the embedded value of existing Anglo assets and the future optionality and benefits that BHP can derive, specifically from Anglo’s unlisted assets. “This would require a meaningful revision of the current BHP proposal that should take into consideration the material risks that current shareholders of both Anglo and its subsidiaries would have to assume over an extended time frame,” Mr. Abel Sithole, PIC CEO explained. “In addition, there has to be future and perpetual participation by South African shareholders in the acquired assets through the JSE,” Mr. Sithole said. The PIC recognises the positive impact of Anglo American in the South African economy and the region at large, and the company’s role in this regard should not be diminished as a result of the proposed offer by BHP. The PIC will continue to engage both companies. Issued by PIC Corporate Affairs Media Enquiries: media@pic.gov.za

No copper, no transition; no pressure, no diamonds; and generally no value w/o strategic focus and execution excellence. AAL strategic re-focus (it was high time) is predicated on delivering more value than BHP offer: that's a lot of a value gap £39bn offer vs. today's market cap of £29bn. Sense of urgency, execution focus and market conditions will be of the essence (they won't maximise value, they'll merely optimise a set of criteria incl. timing, clean carve-out, political interference and value). The simplified portfolio is excellent (maybe apart from Woodsmith) but remains sub-scale, and must indeed generate significant efficiencies (not sure how it'd be more than what BHP would have done, but clearly AAL management know their asset base better and they've been there before). Optionality in the portfolio was there before and not valued by the market. Equity re-rating will require results within six months and a higher performance than peers. In the meantime, credit story ought to be challenged given execution risks and perceived reduced diversification (although I don't share that perception). The fact of the matter is that AAL is in play (been for 15 years in fact, but under-performance and copper supply shortfall are the triggers for it to be on the open) and the fundamentals remain: scale matters in particular in copper and iron ore, and mining companies are too small on the former. However, the discipline that BHP is showing will be demonstrated by others, across the entire capital allocation framework. Plus BHP, RIO, GLEN have options beyond AAL, as have other pure plays. Still, AAL remains the prize, and other names incl. from China and Middle-East will be watching (not necessarily miners).

Recent changes at Rio Tinto, highlighted in this AFR article, demonstrate a strategic shift in the mining giant's approach to executive compensation, with a new emphasis on #decarbonisation. This change introduces significant bonuses tied to reducing #carbonemissions, a move that not only aims to meet #environmental targets but also reflects growing investor pressure for #sustainable practices.   This week Hexagon Energy Materials announced the potential development of a low-emissions #ammonia bunkering business at Dampier, in the Pilbara region of Western Australia. The low-emissions ammonia project could provide low-emission fuel for iron ore carriers, helping to #decarbonise Australia’s largest export. As major industry players like Rio Tinto intensify efforts to reduce their environmental footprints, initiatives such as Hexagon’s present a timely advancement in sustainable maritime operations, resonating with broader shifts towards environmental responsibility in the sector.   Via The Australian Financial Review: https://lnkd.in/d-iC5T-u Oceania Marine Energy  

Wael Sawan at Shell wants to move from the London Stock Exchange to NY to get the price of the Shell stock up again. Is it me or does the value of a stock reflects future earnings and as such isn't the current value a reflection of a business with a core product that in the next decades will be illegal to be used by most of its existing customers? Shell has core competencies in drilling, chemical distillery, global transport, local sales,... If its stock value is too low, perhaps reapplying these skills to generate new growing businesses is probably the more enduring solution to stock market success. Do you agree? https://lnkd.in/e5msr9Uu