Anglo American sells Tarmac, stock near multi year lows

Resources bore the brunt of the selling again yesterday, down a percent as Anglo closed in on territory last seen in October of 2009. There was a brief swoon down to 233.75 at the beginning of September, unfortunately we are close to that now. Prior to the period of great pity in 2008 when the stock was absolutely crushed along with all other equities globally, these levels are the same as 7 odd years ago in London. The stock first crossed 17 pounds sterling in September of 2005. We are now at 1699 pence. Sad face. Year to date however Anglo is down nearly 29 percent in London, whilst the FTSE is barely higher, nearly 2 percent up in a very tough year. In the same market, over five years, the FTSE is down 10 percent whilst Anglo American has lost 51.5 percent of their value.


BHP Billiton is up a rather pitiful 16.7 percent over the same time, but hey, you would take that any day of the next year, not so? Especially when you look at their peers. Rio Tinto is down 46 percent over the last five years, so the Anglo problems are not unique. Xstrata are down 72 percent over the last half a decade, that has caused the biggest stink. So BHP Billiton wins, as a result of their geographical diversity and portfolio quality. Now you know why they, BHP Billiton always talk about their tier 1 assets.


Locally we see the Anglo American Platinum staff return to work, there was a press release: Anglo American update re. Anglo American Platinum which spelt out the details. I spoke to a very good friend of mine in Rustenburg yesterday, he works for one of the heavy duty equipment suppliers in the area and he says that activity on his front has been very low recently. Very low, everyone is differing purchases of heavy equipment and they are in a wait and see mode. And the obvious question that I asked him, what about mechanisation was met with a yes definitely reply. And looking at different ways to make sure that the businesses stay afloat in this tough environment. What he did say to me however was that if "things" came back to some level of normalisation quickly, there would be pent up buying. I hope that he is right! There is the mere matter of Anglo American Platinum to complete their platinum review you know! That would be coming in the next few weeks I would think.


In news just out this morning, Anglo American and Lafarge announce the sale of a portfolio of Tarmac and Lafarge construction materials operations in the UK to Mittal Investments generating cash of up to £285 million. Of up to 285 million Pounds. This is part of the continued divestment away from the non-core assets to the big expensive projects. No, that was not fair. Or maybe it is. Not too sure, all we know is that we are not buying them now.