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ArcelorMittal (MT) – High debt, weak steel margins.
HOLD (Wait for Better Opportunity)
Anglo American (AAL) – Decent but not great.
Teck Resources (TECK) – Good but high debt.
Impala Platinum (IMP) – Platinum recovery needed.
Best for:
Safe Investors: Barrick Gold & BHP.
Value Hunters: African Rainbow & Norilsk Nickel.
Avoid: Vedanta (debt trap), Sibanye (PGM risks).
Piotroski F Score Analysis of Africa’s Best Mining Companies Shares :
Company
Score (0-9)
Interpretation
Barrick Gold
8
Excellent Financials
BHP Billiton
7
Very Strong
African Rainbow Min.
7
High Profitability
Norilsk Nickel
7
Efficient but Risky
Anglo American
6
Moderately Healthy
Exxaro Resources
6
Stable but Coal-Exposed
Impala Platinum
5
Neutral
Teck Resources
5
Debt Concerns
AngloGold Ashanti
5
Average
Sibanye Stillwater
4
Weak
ArcelorMittal
3
Struggling
Vedanta Resources
2
High Risk
Vedanta Zinc Intl.
2
Very High Risk
Key Takeaways
Best Piotroski Scores (7-9) – Strong Buys
Barrick Gold (8) – Best in class, strong cash flow & profitability.
BHP (7) – Solid fundamentals, but slightly leveraged.
African Rainbow (7) – Low debt, but smaller liquidity.
Norilsk Nickel (7) – High efficiency, but Russia exposure is a risk.
Medium Scores (4-6) – Hold or Cautious
Exxaro (6) – Good but coal-dependent.
Anglo American (6) – Decent, but not outstanding.
Teck (5) – Debt concerns despite copper upside.
Worst Scores (0-3) – Avoid
Vedanta (2) – Debt crisis, weak cash flow.
ArcelorMittal (3) – Steel industry struggles.
Sibanye (4) – Leverage and PGM risks.
Final Verdict
Best for Value Investors: Barrick Gold, BHP, African Rainbow.
Avoid: Vedanta, ArcelorMittal, Sibanye.
Watchlist: Anglo American (if commodity mix improves).
Credit Rating Analysis of Best African Mining Stocks :
Company
S&P Rating
Moody’s Rating
Fitch Rating
Anglo American plc
BBB
Baa2
BBB
Sibanye Stillwater
B+
B2
B+
Harmony Gold Mining
BB-
Ba3
BB-
African Rainbow Minerals
BB+
Ba1
BB+
Impala Platinum (Implats)
BB
Ba2
BB
Barrick Gold Corporation
BBB+
Baa1
BBB
Teck Resources
BB+
Ba1
BB+
AngloGold Ashanti
BB
Ba2
BB
Vedanta Resources
B-
Caa1
CCC+
Kaz Minerals
BB-
Ba3
BB-
Exxaro Resources
BBB-
Baa3
BBB-
BHP Billiton
A-
A3
A-
ArcelorMittal
BB
Ba2
BB
Vedanta Zinc International
CCC+
Caa2
CCC
De Beers Group
A-
A3
A-
Norilsk Nickel
BB+
Ba1
BB+
Final Words : Future Investment Analysis for Africa’s Best Mining Stocks
Future Prospects & Financial Strength
Company
Future Prospects
Financial Strength
Barrick Gold
Good
Excellent
BHP Billiton
Good
Very Strong
African Rainbow Min.
Good
High Profitability
Norilsk Nickel
Fair
Efficient but Risky
Anglo American
Fair
Moderately Healthy
Exxaro Resources
Fair
Stable but Coal-Exposed
Impala Platinum
Fair
Neutral
Teck Resources
Fair
Debt Concerns
AngloGold Ashanti
Fair
Average
Sibanye Stillwater
Poor
Weak
ArcelorMittal
Poor
Struggling
Vedanta Resources
Poor
High Risk
Vedanta Zinc Intl.
Poor
Very High Risk
Investment Possibilities (Long Term & Short Term)
Company
Long Term Investment
Short Term Investment
Barrick Gold
Good
Good
BHP Billiton
Good
Good
African Rainbow Min.
Good
Fair
Norilsk Nickel
Fair
Fair
Anglo American
Fair
Fair
Exxaro Resources
Fair
Poor
Impala Platinum
Fair
Fair
Teck Resources
Fair
Poor
AngloGold Ashanti
Fair
Poor
Sibanye Stillwater
Poor
Poor
ArcelorMittal
Poor
Poor
Vedanta Resources
Poor
Very Poor
Vedanta Zinc Intl.
Poor
Very Poor
Top Picks (Based on Financials and Future Prospects):
Barrick Gold
Strong long-term and short-term prospects, with excellent financials.
A solid pick for both conservative and growth-oriented investors.
BHP Billiton
Very strong financials with good future prospects.
A top-tier investment in both the long term and short term.
African Rainbow Minerals
High profitability and solid future prospects.
A good choice for long-term investors, though short-term might be more moderate.
Norilsk Nickel
Efficient operations but carries risks.
Suitable for both long-term and short-term investors, but with caution.
Anglo American
Moderately healthy financials with fair future prospects.
Stable for long-term investment but watch for short-term fluctuations.
So this was it for Best Mining Stocks of Africa. You can read many fundamentals like Piotroski Analysis etc from this article which would be helpful in selecting the best companies for you. Best of luck.