Stock pick of the week: Anglo American (mining)
Published 02/08/2011 | 13:32
International mining giant Anglo American has an industry-leading pipeline of projects with plans to double its production by 2020 – 50pc of this should be realised by 2015.
Its portfolio consists of platinum group metals and diamonds (c18pc of earnings), copper (30pc), iron ore (35pc), coal (15pc) and other (2pc).
Anglo is more likely than many of its peers to become an acquisition target.
In summary, considering the groups unique commodity mix, above sector average organic growth rate and potential predatory interest or South African restructuring it is a core stock holding.
Other pluses include a superior free cash yield of above 11pc.
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