Listed Mining Companies
With platinum-group metals prices in rands having fallen 25% since September 21, London platinum-share watcher Liberum Capital has warned investors to expect Anglo American to underperform in relation to the big-five diversified miners. Anglo is exposed to platinum through its 70% shareholding in American Platinum (Amplats). Liberum also exhorted investors to shed their Lonmin shares and refrain from buying more Aquarius shares. Liberum forecasts that Amplats’ 2012 net earnings will fall and its free cash flow will decline. Given platinum’s contribution to South Africa’s foreign exchange position, a prolonged platinum slump would deliver a major blow to the already contracting South African economy.
