Anglo Sees `Slightly More Positive' Economic Signs (Update2)
(Adds analyst in sixth paragraph, BHP forecast in fifth.)
London, May 10 (Bloomberg) -- Anglo American Plc, the world's
second-largest mining company, said it sees ``slightly more
positive'' signs of an economic recovery led by the U.S. that will
boost prices for its minerals.
Prices for both precious metals such as platinum and gold and
industrial metals including nickel, copper and zinc have risen
this year, while diamond sales have been higher than forecast,
Anglo said. The company's shares have gained 12 percent on the
year as investors anticipate an economic rebound.
Anglo's forecast came even as a rally in metals prices that
started in November shows signs of stalling. Copper has dipped 3.7
percent since April 1, while platinum's down 5.1 percent from a
peak three weeks ago. Bigger rival BHP Billiton said last week it
didn't see signs of improvement.
``Anglo wasn't as gloomy as BHP Billiton,'' said Robin Bhar,
a metals analyst at Standard Bank. ``Sentiment is better than it
was six months ago. What we are not seeing is that sentiment being
turned into full-blown buying'' of raw materials.
Second-half 2001 profit slumped by a third at Anglo as
recession in the U.S. helped push copper prices to a 14-year low
and platinum down 15 percent. The world's biggest economy is
healing now, Chief Executive Tony Trahar said.
``Whilst almost every week brings conflicting signals about
the state of the world economy the economic signs, particularly in
the U.S.A., are slightly more positive,'' he said in a statement
to the Regulatory News Service, reporting comments made at Anglo's
Annual General Meeting.
Cost Cuts
Anglo will keep cutting costs even as revenue rebounds,
looking to save more than $150 million this year, Trahar said. The
company is looking to buy more large mines producing so-called
base metals, he said. Last week Anglo agreed to pay $1.3 billion
for a Chilean copper mine owned by Exxon Mobil Corp.
``We are continuing to review our base metals portfolio,'' he
said. ``We will seek further opportunities to acquire world-class
assets.''
Anglo has cut investment in smaller mines. Yesterday it
announced it would sell its half of Brazil's Saloba Metais SA
copper deposit for $51 million. Last week it disposed of nickel-
mining interests in Botswana.
Anglo shares rose 8 pence, or 0.7 percent, to 1169p in
London. They've gained for five of the last six days.
--Jonathan Rosenthal in Johannesburg on 27-11-286-1931 or
jrosenthal1@bloomberg.net Editor: Mellow |
