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Transcript:

Andrew Newell: I’m going with Anglo American one of the “big daddys” of the stock exchange. Our thinking with Anglo American is the company for some time has lagged its contemporaries in the resources sector. If you look at cyclically adjusted earnings - which is a more sensible way to value a business in this cluster - it stands out very clearly against certainly its big peers and some of its smaller competitors as well. There is also the investment that they have in Anglo Platinum where 75% or 80% is owned by Anglo American. The platinum story is quite an interesting one. It isn’t a home run by any stretch but it covers many bases in the uncertainty of the world. If growth does pick up and materialise globally platinum will play an important role in that and that obviously trickles through to Anglo American. Equally if the wheels fall off and we start getting into an inflationary environment it offers similar inflation protection to gold but platinum does have that fall-back of industrial applications as well.

Broker:
Andrew Newell, Cannon Asset Managers

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