Anglo boosts Amplats stake

The biggest news during the report period was Anglo American‘s revelation that it had spent US$701 million last year increasing its stake in Anglo American Platinum to 59.6% from 50.1%. The strategic move was contained in the major’s year-end results, which boasted of net earnings of US$3.18 billion in 2001, thanks to net exceptional gains of more than US$1.4 billion. Not counting the one-off items, net profits rose almost 4% to US$1.73 billion even as sales slumped more than 6% to US$19.3 million.

However, Anglo’s decent results were hampered by a US$353-million writedown stemming its aborted attempt to revive Zambia’s moribund copper industry.

Anglo also announced two South African iron ore acquisitions: a 9.6% interest in Kumba Resources and 34.9% of Anglovaal Minerals. Anglo American ended the period off a dime at US$17.23 while Amplats sank $2.47 to US$43.

Anglo’s two global rivals, BHP Billiton and Rio Tinto, reported that their massive, jointly owned Escondida mine in Chile produced 52,279 tonnes of copper in February, down 19% from a year earlier. The fall was partly due to a plan to trim the mine’s production by 80,000 tonnes through June 30 by processing lower-grade ore.

BHP eased up 25 over the period to US$12.55 while Rio fell 34 to US$83.40.

Among the remaining U.S.-listed majors: Phelps Dodge shot up $3.37 to US$41.89; Newmont Mining fell 34 to US$24.21; AngloGold dropped 77 to US$21.89; Gold Fields sank 52 to US$8.06; Freeport-McMoRan Copper & Gold‘s B shares advanced 59 to US$15.78; and Alcoa rose 49 to US$38.92.