The company financials are strong and positive earnings are prodcued YoY. Though, fundamentals are currently showing a neutral approach.

Overview

Anglo American plc is a British mining company. It is the world’s largest producer of platinum with around 40% of world output, as well as being a major producer of copper, diamonds, nickel, iron ore and steelmaking coal. Its headquarters is based in London, England.

Financials

In this instance comparing 2021 financials to 2020. Revenue grew to $41,554bn in 2021 versus $25,447bn in 2020, with operating profit of $17,629bn before tax versus $5,464bn. Earnings per share went up by 4.2x to $6.93, with equity shareholders of the company totalling at $8,562bn compared to $2,089bn in 2020. Looking at its assets to liabilities, total assets for the year came in at $65,985bn (up $3,451bn YoY) and liabilities were reported at ($31,215bn) against ($29,768bn). Up $1,447bn. However, the increase in assets offsets the liabilities and more. Calculating the total equity of the company at $34,770bn for the year in 2021 against $32,766bn in 2020.      

Technicals

From a technical aspect, its shares are currently trading at $28.66 a share. Applying the Fibonacci retracement to the chart, resistance sits at $28.87 then at $29.20 (just above the 23.6% Fib) than a major resistance level at $30.59. A break above this major resistance level could see the stock begin to make some recovery after the losses since April this year. Towards the downside, support levels sit at $28.26 then at $27.70 then at $26.38. A break below the $26.38 support may see the stock slide towards the major support level at $24.86. Looking at the indicators, MACD is neutral and so is RSI as it reads 48.

Summary

On the basis of the financials, the company is making strong improvements year-on-year with a big jump in revenue and profit. Earnings per share quadrupled in 2021 from 2020, and the total equity has risen by over $2bn as the total assets offset liabilities and more. Hence, supporting the solid performance levels which are clearly highlighted YoY. Based on the technicals, a strong support base is established and a breakthrough the major resistance level could gain momentum in the long-term. Of course this is dependent on the financial performance of the firm in the future.