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 The Sharenet Daily 
Thursday, 19 December 2013 - 20:00
Top News
SA Business
Company News
Company Results
World Markets (Spot Prices)
JSE Today
JSE Trading Statistics
Major Moves
Index Summary
Latest Consensus Changes / Results Expected
Recent Dividends / Ex Div
Upcoming AGMs
Stock Exchange News Service (SENS)

Seed Weekly - Anglo American plc ? Investor day outlines opportunities


Anglo American is one of the largest diversified mining companies in the world, with operations spanning bulk commodities, base metals and precious metals across the globe. The company is synonymous with mining in South Africa, and can trace its roots back to 1917 when it was founded by Ernest Oppenheimer with £1 million in capital from UK and US sources.

In 1926 Anglo became the largest single shareholder in the De Beers diamond company, kicking off a long period of expansion and acquisitions. In 1961 Anglo made its first major investment outside Southern Africa by investing in the Hudson Bay Mining and Smelting Company in Canada. The group entered the steel industry in 1967 with the acquisition of Scaw Metals, and established the Mondi Group in the same year to ensure exposure to the paper and pulp industry.

In 1999 Anglo merged with its Luxembourg-based affiliate Minorco to form Anglo American plc, with its primary listing and headquarters in London and secondary listings in Johannesburg, Switzerland, Botswana and Namibia. The group has since focused on streamlining its assets and concentrating on its core mining portfolio. Measures taken include the demerger of the Mondi Group and the sale of Anglo’s shareholdings in AngloGold Ashanti, Highveld Steel and Vanadium, Namakwa Sands, Tongaat Hulett and Hulamin.

Investor day

At a recent investor day, Anglo has outlined the current context in which it operates, presented their asset reviews and operational priorities and put forward a strategy to improve its Return on Capital Employed (ROCE).

Operational Context

In the six years up to 2012, the estimated industry ROCE has dropped significantly from 24% to 10%. Anglo attributed the decline to the following factors:

• Commodity prices dropped from 10 year highs
• Companies over capitalised their assets in pursuing growth at any cost
• Takeovers “at any price” driven by desire to dominate markets
• Operating costs increasing reflecting(1)Deeper operations and lower mining grades; (2) Lack of planning and execution discipline and (3) Lack of control on discretionary spending.
• Projects overspent and behind schedule as detail lost in “need for speed”

Anglo believes its diversified and high quality commodity portfolio is a distinct competitive advantage that makes it the only truly diversified miner. In the graph below, Anglo’s 2012 Earnings Before Interest, Tax, Dividends and Appreciation (EBITDA) is split by the various underlying commodities and compared to 4 industry peers.

Over the last four years, the average capital employed by geography have moved slightly
from South Africa towards Australia and South America, a trend that is expected to continue as future growth is expected in the latter regions.

Asset Review

Anglo has reviewed all its operating assets across the globe in an attempt to identify key risks faced by each asset and to determine each asset’s full potential. A “Pathway to Value” methodology was proposed whereby each asset is first improved from an operational perspective and then from the management side.

The contribution to Anglo’s 2012 earnings is skewed heavily towards 13 of the group’s 57 assets, with Kumba being the largest contributor. The challenge ahead is to improve the contribution of the “Wave 3” assets in the graph below.

Return on Capital Employed

In its 2013 interim results presentation, Anglo has set out a strategy for improving its attributable ROCE from 8% to 15% or more by 2016. Management has identified ongoing capital expenditure and operational risks as possible detractors, and their current projects and further operational improvements as future positives.

In the latest presentation, Finance Director René Médori has reiterated that the target is realistic and that optimal capital expenditure, reduced overheads and unlocking of supply chain benefits will be key to achieving success.

Seed believes that the turnaround of the struggling giant under new CEO Mark Cutifani and his quality management team is well under way, and we hold Anglo’s at a 2.5% weight in the Seed Model Share Portfolio.

Kind regards,
Cor van Deventer

Seed would like to use this opportunity to wish all our faithful readers a very blessed Christmas.

021 914 4966

Thu, 19 Dec 2013
Top News
South Africa's rand fell over 1 percent on Thursday against a dollar bolstered by the U.S. Federal Reserve's decision to start paring back its bond-buying in January.  Full story

South African stocks ended higher on Thursday in line with major global markets after a modest stimulus cut by the U.S. central bank, but faltering commodity prices hit mining shares.  Full story
President Vladimir Putin is to pardon one of his best known opponents, oil tycoon Mikhail Khodorkovsky, after a decade in jail in what may be a gesture to critics of his human rights record before Russia hosts the Winter Olympics.  Full story
The U.S. attorney in Manhattan defended on Wednesday the treatment of an Indian diplomat who was strip-searched after her arrest last week on charges of underpaying her nanny, a case that has strained U.S.-Indian relations.  Full story
Brazil awarded a $4.5 billion contract to Saab AB on Wednesday to replace its aging fleet of fighter jets, a surprise coup for the Swedish company after news of U.S. spying on Brazilians helped derail Boeing's chances for the deal.  Full story
European shares posted their biggest one-day gain in three months on Thursday after the U.S. Federal Reserve unveiled plans to phase out its. . .  Full story
U.S. stocks fell on Thursday, a day after the Dow and the S&P 500 indexes closed at record highs as investors digested a. . .  Full story
Gold slid nearly 2 percent on Thursday to its lowest since late June as the U.S. Federal Reserve took its first step in. . .  Full story
Britain's main share index rose to a two-week high on Thursday, helped by gains in pharmaceutical stocks and by a pledge from the. . .  Full story

U.S. government bonds sold off sharply on Thursday, one day after the Federal Reserve started winding down its crisis-era stimulus, while major U.S. equity. . .  Full story
U.S. stocks hit session lows on Thursday following a mixed set of data, including existing homes sales which fell to their lowest in. . .  Full story
U.S. stocks fell at the open on Thursday following data showing a rise in jobless claims, having hit record highs a day earlier. . .  Full story
Britain's main equity index rose on Thursday to its highest level in around 2 weeks, after the U.S. Federal Reserve sugar-coated a surprise. . .  Full story
SA Business
Cameroon's farmers sold 21,518 tonnes of cocoa beans for grinding by the end of November since the start of the season in August, up slightly from the same period last season, National Cocoa and Coffee Board (NCCB) data showed.. . .  Full story
South Africa's top financial daily weighed in on the acrimonious battle between the state pension fund and Chile's CFR Pharmaceuticals on Thursday, accusing the asset manager of "hostility to foreign investment".. . .  Full story

Elections in all the "fragile five" emerging economies next year, along with the thorny topics of Syria and Iran, will make life tricky for investors trying to steer through political risks in developing markets after a hairy 2013.. . .  Full story
Elections in all the "fragile five" emerging economies next year, along with the thorny topics of Syria and Iran, will make life tricky for investors trying to steer through political risks in developing markets after a hairy 2013.. . .  Full story
World Markets (Spot Prices)
NameTimeRPMove% Move
JSE Overall17:0044327.84402.460.92%
JSE Top 4017:0039607.30402.261.03%
JSE Gold17:00975.96-43.43-4.26%
JSE Financial17:0032462.74463.321.45%
JSE Industrial17:0059430.19658.261.12%
JSE Indust 2517:0052189.13653.141.27%
JSE Resource17:0048236.7767.350.14%
DJ Futures19:0214089.67-2017.33-12.52%
DJ Ind19:5816167.30-0.67-0.00%
SP 50019:581807.67-2.98-0.16%
FTSE 10018:356584.7092.621.43%
All Ords07:385202.00102.702.01%
NZSE 5006:484707.0631.180.67%
NameTimeRPMove% Move
Gold $19:591195.86-21.08-1.73%
Gold R19:5912403.56-334.74-2.63%
Gold R/kg19:58398833-10025-2.45%
Silver $19:5919.2200-.4140-2.11%
Platinum $19:591318.60-12.40-0.93%
Palladium $19:59693.60-1.90-0.27%
Brent Crude19:58110.37-.04-0.04%
Rand / Dollar19:5910.37260.02720.26%
Rand / Pound19:5516.95640.03610.21%
Rand / Euro19:5514.16810.01730.12%
Rand / NZD19:598.4737-0.0034-0.04%
Rand / AUD19:559.19290.04640.51%
Yen / Dollar19:59104.1130-0.1440-0.14%
Euro / Dollar19:590.73190.00570.78%
Dollar / Euro19:591.3664-0.0010-0.07%
Pound / Dollar19:550.61050.00030.05%

Click here for the Sharenet Spot Price page
The JSE Today

Trading Statistics
* Includes all listed instruments on the JSE
Major Moves Up
SharenameSaleMove% MoveVolume
1 EFFICIENT  3059948.06.%256
2 CADIZ  1101212.24.%119982
3 INTEWASTE  11798.33.%2158
4 DIGICOR  170116.92.%50327
5 ATLATSA  600305.26.%10575
6 REMGRO  201219214.80.%2683851
7 CALGRO  650294.67.%269303
8 TRNSHEX  408184.62.%54860
9 PREMIUM  1770704.12.%28196
10 WOOLIES  74992743.79.%5596445
11 HYPROP  76252743.73.%689216
12 WITSGOLD  1088383.62.%101797
13 TIGBRANDS  260718713.46.%1428791
14 MIXTEL  495163.34.%160724
15 CBH  320103.23.%1000
16 HOSP-A  1640503.14.%12148
17 INVLTD  71812093.00.%1851577
18 INVPLC  72202103.00.%3625488
19 ROCKCASTL  1426412.96.%105450
20 CITYLDG  138833932.91.%41759

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Major Moves Down
SharenameSaleMove% MoveVolume
1 WCC  162-38-19.00.%145
2 ELLIES   560-60-9.68.%3315685
3 MARSHALL  755-68-8.26.%148
4 SIBANYE  1143-73-6.00.%2927706
5 DRDGOLD  375-19-4.82.%4038292
6 NUWORLD  2000-100-4.76.%300
7 COAL  110-5-4.35.%369900
8 METROFILE  440-20-4.35.%2585719
9 GFIELDS  3231-144-4.27.%6513540
10 ANGGOLD  11680-520-4.26.%2408130
11 HARMONY  2461-106-4.13.%1080447
12 AVENG  2783-117-4.03.%1144398
13 LITHA  240-9-3.61.%25767
14 ARGENT  520-18-3.35.%21606
15 FONEWORX  232-8-3.33.%10000
16 BLUETEL  825-23-2.71.%622764
17 TRANSCAP  730-20-2.67.%22700
18 AFRIMAT  1211-29-2.34.%11161
19 AQUARIUS  650-15-2.26.%265614
20 FORTRESSB  900-20-2.17.%13000

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New Highs
SharenameSaleHighMove% MoveVolume
1 EFFICIENT  3053059948.06.%256
2 ATLATSA  600600305.26.%10575
3 STEINHOFF  43894443791.83.%12123506
4 GRINDROD  28112866361.30.%888166
5 METAIR  39004199431.11.%296299
6 MRPRICE  15700161091230.79.%606443
7 RIPLC  90491040.44.%97253
8 ACCELERAT  52056520.39.%414283
9 NAMPAK  39653980150.38.%647531
10 GRANPRADE  4754800.450139

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New Lows
SharenameSaleLowMove% MoveVolume
1 ELLIES   560550-60-9.68.%3315685
2 GFIELDS  32313183-144-4.27.%6513540
3 HARMONY  24612416-106-4.13.%1080447
4 BUILDMX  268151-2-0.74.%48500
5 B-AFRICA  12755125001050.83.%3384501
6 OCTODEC  18201790201.11.%570423

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Index Summary
Index NameRPMove% Move
Top 4039,607.30402.261.03%
Mid Cap58,688.63265.760.45%
Small Cap48,958.48-73.12-0.15%
Resource 2048,236.7767.350.14%
Industrial 2552,189.13653.141.27%
Financial 1512,280.92195.811.62%
Financial & Ind. 3055,021.98754.661.39%
All Share44,327.84402.460.92%
Oil & Gas 37,383.23164.210.44%
Mining 28,753.12-2.78-0.01%
Gold Mining975.96-43.43-4.26%
Platinum Mining45.32.340.76%
GENERAL MINING8,474.8729.360.35%
Oil & Gas Producers 20,100.2788.290.44%
Basic Materials 25,661.3916.870.07%
Chemicals 22,996.45-6.66-0.03%
Forestry & Paper 27,569.25379.791.40%
Industrial Metals 23,106.66-235.00-1.01%
Industrials 43,380.73492.501.15%
General Industrials 132.842.842.18%
Consumer Goods 54,577.42343.450.63%
Automobiles & Parts 8,831.3997.371.11%
Household Goods298.3351.83%
Health Care 76,514.80152.070.20%
Beverages 175.841.620.93%
Index NameRPMove% Move
Food Producers 66,469.26780.841.19%
Personal Goods 993.97.200.02%
Consumer Services 10,631.58205.261.97%
General Retailers 61,279.96861.021.43%
Travel & Leisure 5,452.1826.020.48%
Media 225.905.152.33%
Support Services 2,448.16-53.33-2.13%
Telecommunications 9,687.83179.761.89%
Financials 32,462.74463.321.45%
Banks 55,468.60972.901.79%
Non-life Insurance 46,894.50-321.58-0.68%
Life Insurance 31,299.49392.111.27%
General Financial 3,134.0737.041.20%
Technology 44,475.77232.550.53%
SHARIAH TOP40 3,683.60200.56%
FTSE/JSE SHARIAH ALL3,814.20180.47%
COAL MINING18,093.00-276-1.50%
FTSE JSE Fledgling 6,229.28-0-0.00%
FTSE/JSE Alt X 1,116.36171.53%
RESOURCE 26,296.31190.07%
DIVIDEND PLUS213.1920.86%
FTSE/JSE RAFI 408,685.25820.95%
Capped Top 4020,944.282181.05%
Capped All Share22,446.642050.92%
JSE TABACO 6,929.26450.65%

Click here for the Sharenet Index Summary page
Latest Consensus Changes**
CodeCompany NameStatusUpdated
Results Expected**
ExpectedCompany NameFin. Date
20/12/2013CULINAN5.5September 2013 (Final)
20/12/2013CULINANPRSeptember 2013 (Final)
20/12/2013CULLINANSeptember 2013 (Final)
20/12/2013CULPREF3September 2013 (Final)
20/12/2013MARSHALLSeptember 2013 (Final)

Recent Dividends**
Share NameDec-DateLDTPay-DateAmount
AF-OVR 6%PP13/12/1303/01/1413/01/14ZAR 0.0600
AF-OVR 6%PP13/12/1303/01/1413/01/14ZAR 0.5400
REX TRUE6%13/12/1303/01/1413/01/14ZAR 0.0600
INDEQTY09/12/1324/12/1306/01/14ZAR 0.1750
NAMPAK 6.506/12/1317/01/1427/01/14ZAR 0.0650
Ex Div**
Share NameDec-DateLDTPay-DateAmount
SABVEST03/12/1318/12/1330/12/13ZAR 1.0000
SABVEST-N03/12/1318/12/1330/12/13ZAR 1.0000
TRANSCAP26/11/1312/12/1323/12/13ZAR 0.1200
AMECOR02/12/1318/12/1330/12/13ZAR 0.0650
LIBHOLD1102/12/1318/12/1330/12/13ZAR 0.0550

Upcoming AGMs**
CodeCompany NameDateStatus

Stock Exchange News Service
19/12/201317:44BONATLA PROPERTY HOLDINGS LIMITED - Appointment of Independent Non-Executive Dir...
19/12/201317:27JSE LIMITED - Index Change Advice - 20131224 Palabora Mining Deletion
19/12/201317:10NAMPAK LIMITED - Dealings In Securities By Directors, The Company Secretary And ...
19/12/201317:06FOUNTAINHEAD PROPERTY TRUST - Financial effects of Pareto disposals and withdraw...
19/12/201316:48THE SPAR GROUP LIMITED - Dealings in securities by director
19/12/201316:47NAMPAK LIMITED - Settlement And Allotment Of Shares To Directors, The Company Se...
19/12/201316:38NAMPAK LIMITED - Settlement And Allotment Of Matching Shares To Directors, The C...
19/12/201316:00CLICKS GROUP LIMITED - Posting Of Circular, Notice Of General Meeting And Notice...
19/12/201315:58PIONEER FOOD GROUP LIMITED - No Change Statement, Posting Of Abridged Annual Rep...
19/12/201315:55ORION REAL ESTATE LIMITED - Notice of Third Distribution to Linked Unitholders
19/12/201315:36SECUREDATA HOLDINGS LIMITED - Posting of Circular and Notice Convening the Gener...
19/12/201315:35SECUREDATA HOLDINGS LIMITED - CANCELLATION OF S340127 Posting of Circular and No...
19/12/201315:35OCTODEC INVESTMENTS LIMITED - Posting of Octodec's annual report and details of ...
19/12/201315:33METROFILE HOLDINGS LIMITED - Dealings in securities
19/12/201315:00ATLATSA RESOURCES CORPORATION - Bokoni Platinum Mine Concludes Wage Agreement
19/12/201315:00MAS REAL ESTATE INC - Issue of listing particulars n respect of the Karoo Transa...
19/12/201314:45SAPPI LIMITED - Dealing In Securities By Directors
19/12/201314:40GRAND PARADE INVESTMENTS LIMITED - Dealing in securities by the Grand Parade Sha...
19/12/201314:23ARGENT INDUSTRIAL LIMITED - Changes to the functions of directors
19/12/201314:00BAUBA PLATINUM LIMITED - Renewal of Cautionary Announcement
19/12/201311:21SECUREDATA HOLDINGS LIMITED - Posting of Circular and Notice Convening the Gener...
19/12/201311:06JSE LIMITED - GEN - The Standard Bank of South Africa Limited De-listing of Fina...
19/12/201310:48THE WATERBERG COAL COMPANY LTD - Appendix 3Y - X6 - Change of Directors Interest...
19/12/201310:45VUKILE PROPERTY FUND LIMITED - Dealings in securities by directors and company s...
19/12/201310:32CHEMICAL SPECIALITIES LIMITED - Notice of General Meeting
19/12/201310:28DISTELL GROUP LIMITED - Dealings in securities by directors
19/12/201310:25THE WATERBERG COAL COMPANY LTD - Change of Share Registry Notification
19/12/201310:21THE WATERBERG COAL COMPANY LTD - Appendix 3B - New issue announcement
19/12/201310:09THE WATERBERG COAL COMPANY LTD - Appendix 3B
19/12/201309:50NEW GOLD ISSUER LIMITED - GLD-Partial De-listing of NewGold Debentures
19/12/201309:45BLACKSTAR GROUP SE - Transaction in own shares
19/12/201309:45ARGENT INDUSTRIAL LIMITED - Dealing in securities by directors
19/12/201309:45EVRAZ HIGHVELD STEEL & VANADIUM LTD - Further Renewal of Existing Cautionary Ann...
19/12/201309:40NEW GOLD ISSUER LIMITED - NGPLT Listing of additional NewGold Platinum Debentur...
19/12/201309:35NEW GOLD ISSUER LIMITED - NGPLT Listing of additional NewGold Platinum Debentur...
19/12/201309:00FERRUM CRESCENT LIMITED - Issue of shares to directors under the provisions of t...
19/12/201309:00GLENCORE XSTRATA PLC - GLN - Increase in indirect equity interest in Mutanda
19/12/201309:00KIBO MINING PLC - Haneti Nickel and Imweru Gold Projects Update
19/12/201309:00SOUTH AFRICAN COAL MINING HLDGS LTD - Further cautionary announcement re BEE tra...
19/12/201308:22BUILDMAX LIMITED - Withdrawal of cautionary announcement and further information...
19/12/201307:05GOLD ONE INTERNATIONAL LIMITED - Appendix 3C: Announcement of buy-back

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