Tuesday 12 December 2017

Stock pick of the week: Anglo American (mining)

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.

Independent.ie stock picks are not explicit or implicit recommendations to buy or sell the shares mentioned, under the Market Abuse Regulations 2005. Merrion Stockbrokers may be corporate adviser to some of the shares chosen.

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