Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Spekulatius who wrote (34800)	6/24/2009 7:14:21 PM
From: E_K_S	Read Replies (1) \| Respond to of 78632

Hi Spekulatius - Any merger for AAUK is not really that good but the interest by Xstrata might spark other companies to look under the hood. China's state-run Chinalco might be quite interested in AAUK's iron ore and platinum holdings. As a shareholder, I want to see my under valued company continue to grow and maximize it's returns on company owned assets. Fair value (based on AAUK's assets) for this shareholder is around $30.00/share. Anything less in a merger is a giveaway to the buyer. Chinalco could buy a minority ownership position as a long term investment providing AAUK additional capital to buy some Canadian nickle and/or zinc mines. This would help diversify their iron ore, platinum, coal and copper holdings. At current prices ($14.86/share) AAUK is still under valued. My last sale was a few shares around $33.75/share (6/27/2008). My last buy was around $10.00/share (01/13/2009). I think you picked up some shares below $9.00/share! There recent acquisitions have worked out quite well but IMO are not at all fully valued especially their iron ore assets. On August 5, 2008, the Company acquired a 63.3% shareholding in Anglo Ferrous Brazil SA, which holds a 51% interest in the Minas-Rio iron ore project (Minas-Rio) and a 70% interest in the Amapa iron ore system (Amapa). Anglo American acquired an effective 69.2% interest in the Amapa project during 2008. On January 26, 2008 the Company acquired the remaining 50% shareholding in United Marine Holdings. In March 2009, the Company sold its remaining 11.3% stake in AngloGold Ashanti Limited to investment funds managed by Paulson & Co In With a long term threat of much higher inflation and a US $ that is debasing, AAUK provides an excellent hedge against inflation and continues to be a core portfolio position for me (currently makes up 6.6% of the portfolio). I like it when other companies see the same long term value as I do and are willing to pay big $'s. Hopefully, no sale but an investment by a large silent partner. AAUK should continue to move much higher. EKS Anglo American Plays Hard to Get By Christopher Barker June 24, 2009 fool.com