...Relatively Weaker Cost Position: Anglo American plc's cost position is weaker than its key global peers, Vale S.A, Rio Tinto Plc/Ltd, and BHP Billiton Plc/Limited. A majority of Anglo America's iron ore production comes from South Africa, where its mine cost position for iron ore is higher than the other main iron producers and sits mainly in the second quartile/third quartile. Minas Rio (Anglo American's Brazilian iron ore mine) started production in 2015, and sits in the second/third quartile on the cost curve. The cost position of Anglo American's copper mines are also mixed with Collahuasi sitting in second quartile on the copper cost curve whilst Los Bronces operates in the third quartile. Stronger Financial Profile: Anglo American's funds from operations (FFO) adjusted gross leverage fell to 3.0x at end-2016 from 5.4x at end-2015. Gross debt was cut to USD13.6 billion at 30 June 2017 from USD19.8 billion at end-2015. During this period FCF was boosted by the recovery in commodity...
