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Sirius Minerals is “quality” investment, repeats Anglo American

Next week Sirius shareholders are scheduled to vote on the £400mln deal

Anglo American plc - Sirius Minerals is “quality” investment, repeats Anglo American

Anglo American PLC (LON:AAL) has repeated Sirius Minerals PLC (LON:SXX) is a “quality” investment that will “fit well” into the FTSE 100 group’s strategy.

The platinum giant said Sirius’s project in North Yorkshire is attractive in terms of scale, resource life and operating cost profile.

READ: Sirius Minerals: Hedge fund Odey says Anglo "would pay a lot more"

Next week, Sirius shareholders are scheduled to vote on Anglo’s £405mln takeover deal, which the board has been pushing for.

On Wednesday, hedge fund manager Odey Asset Management hammered the offer, claiming it “does not represent fair value for shareholders” in Sirius, as Anglo American “would be willing to bid substantially more”.

Odey manager Henry Steel noted that the mining giant has not declared its 5.5p per share offer for Sirius as a “final” offer deliberately because the deal may either collapse or a third party could join in, allowing Anglo to place a counter bid.

Anglo American's performance

In the year to 31 December, Anglo American posted 8% higher revenue at U$29bn, for underlying earnings (EBITDA) up 9% to US$10bn.

Net debt stretched 40% to US$4.6bn, while total dividend went up 9% to US$1.09 per share.

Production inched up 1%, driven by higher coal and iron ore and offset by lower diamond production at De Beers as expected, due to works at the Venetia mine in South Africa.

The platinum price dipped 2% in the year but has been recovering in the second half thanks to "strong investor demand".

Platinum production is expected to be 2.0-2.2mln ounces in the new year.

Shares rose 1% to 2,118.5p on Thursday at the opening bell.

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Quick facts: Anglo American PLC

Price: 2911.418 GBX

Market: LSE
Market Cap: £399.17 m

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