More on Anglo American
De Beers’ H1 Results
The 45% owned associate company of Anglo American PLC, De Beers has reported a 21% drop in headline earnings to $336 million in H1 2005 against the corresponding period of 2004.
De Beers (which dominates the global diamond market) contributes less than 15% of Anglo American’s operating profits. The decline in De Beers’ headline earnings, however, has been largely due to a weaker dollar and squeezed margins resulted from a reduction in stockpile realization.
A comparatively improved performance is expected from Anglo American during the second half of the year in relation to the previous year’s second half given the positive global economic outlook for commodities.
Anglo American shares trade at a prospective PE of 11.7× (1,393p) and it is at the middle of the range for the sector. The 2.9% yield is at the higher end of the range for the sector.
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