Anglo management has previously targeted $US3-4 billion ($A3.9-5.2 billion) of proceeds from asset disposals in the 2015 and 2016 fiscal years.
“Specific asset candidates include: a 50% stake in Lafarge-Tarmac [UK building materials company] with $1.36 billion due to be received in H2'15, South African Eskom coal mines, Australian domestic coal mines, Rustenburg and Union platinum mines ($1.2bn book value), Mantos Blancos and Mantoverde Chilean copper mines and the Kimberley diamond mine,” the broker summarised in client note on Friday.
“Each of these assets are low margin within their respective markets, most are mature mines and lack of progress to date is supportive of our view that these assets are not highly coveted.”
JP Morgan does not expect any possible “hidden value” to emerge from a South32 like breakup scenario for Anglo assets either.
“In the case of the platinum assets, which are critical to the credibility of the broader restructuring strategy, a sale or spin-out is complicated by these assets being cash loss making at current platinum-group metals prices and the resistance of labour unions to operational restructuring,” JPM said.
“In our view, Anglo will struggle to realise book value for its slated disposals in 2015/16 and we expect it to fall short of its $3-4 billion target.”
In January Anglo confirmed its portfolio was under review in response to press speculation that it aimed to sell four Australian coal mines under a $US3 billion ($A3.7 billion) divestment plan.
At the time, London’s Financial Times claimed that Anglo’s Dawson and Foxleigh mines in Queensland were being primed for a possible sale, with Bank of America Merrill Lynch involved in the process.
In December, Anglo revealed plans to sell the power station-feeding Callide open cut coal mine in Queensland and the closed Dartbrook underground coal mine in the Hunter Valley of New South Wales – taking the potential sales pool to four mines.
