Boston, MA 01/30/2014 (wallstreetpr) – Anglo American plc. (LON:AAL) which is the world’s fifth largest diversified miner in terms of market capitalization has recorded an increase of 6% in its stock as a result of strong growth in its Kumba iron ore, coal, copper and other minute metals for its fourth quarter. The good results in the production has been attributed to the absence of prior years’ strike. Anglo American for Q4 recorded iron ore growth of 25% to clock a high of 11.29 million tons compared to last year’s same period of 9.01 million tones for its rumba iron production.
Production in the Sishen mine also grew by 39% to clock a high of 8.4 million tones with production recovering from the unexpected strikes of the fourth quarter. The only downside of the increase in production came from production in Kolomela which recorded a decrease of 2% for the fourth quarter to stand at a low of 2.7 million tones. The mega mining company recorded increased export sales volumes of 6% to a high of 9.5 million tones mainly attributed to the strikes of 2012 which had impacted that year sales volumes. The company’s finished stock pile level for that period decreased by 24%.
The increase in share price has been enhanced by analyst’s belief that Anglo American plc. (LON:AAL)’s commodity mix is more attractive complimented by the improving demand and supply balance for its platinum based metals. The only bad news that the company could be facing in the coming days is the impeding strikes of workers in its South Africans platinum industry over wages. UBS has already upgraded Anglo American stock to a buy after a good round of results from the previous ‘neutral ’status. As a result, its target price has been raised from 1500p to a high of 1580p. The company is currently looking more attractive as a result of sustained underperformance of its share price.
