Market Wrap - Stock Pick — Anglo American

Andile Buthelezi from Sentio Capital chose Anglo American plc as his stock pick of the day.

"Today I'm going with Anglo-American, it's a diversified mining company exposed to PGMs, exposed to iron ore, copper and diamond. Diamond is a concern right now, the diamond business is not doing too well, but the beauty in having a diversified portfolio means that there are other levers that they can pull on in other regions that can help the group as a whole continue to grow. I like the numbers that these guys are producing they are generates high ebitda margins, generating high returns the capital ratios, they are generating a lot of cash which they have committed to returning to shareholders. They've got a very clear different policy and they also recently at the last results announced a share buyback so, all good news - I think yes concerns about global growth do you affect them but I think the share price has fallen quite a bit to justify having a look at it again."​