Platinum’s rare nature gives it additional value and appeal

Huw Daniel is the CEO of Platinum Guild International, overseeing market development activities in China, Japan, India and the USA, on behalf of the platinum producers of South Africa. Before taking up this role in 2015, Huw ran PGI USA for 12 years...

13 september 2021

Marco Carniello: We want to continue to be the engine boosting the jewellery industry

Italian Exhibition Group (IEG) is a leader in Italy in the organisation of trade fairs and one of the main operators in the trade fair and conference sector at European level, with structures in Rimini and Vicenza, as well as further sites in...

06 september 2021

There is a significant need for smart and technological financial solutions in the diamond industry

MDPS, the Israeli start-up Fintech company from the Mazalit Group is gearing up to enter the diamond industry soon. Zeev Maimon, the CEO of MDPS is also the Founder / CEO of MAZALIT, a B2B payment platform designed and dedicated to the global diamond...

30 august 2021

The future for synthetics lies in that it has become possible to grow a stone you want and make what you want out of it

Alex Popov, President of the Moscow Diamond Exchange and head of the Âme jewelry brand, which uses lab-grown diamonds to produce jewelry, sat for an interview with Rough&Polished sharing his views on the coexistence of natural and man-made diamonds in...

23 august 2021

De Beers’ GemFair ropes in more than 160 Sierra Leone artisanal miners

De Beers inaugurated its GemFair pilot programme in Sierra Leone’s Kono District with 14-member mine sites in 2018 to create a secure route to market for ethically sourced artisanal and small-scale diamonds. GemFair programme manager Ruby Stocklin-Weinberg...

16 august 2021

Underperform for Anglo American Diamond Company – RBC

02 february 2009

RBC Capital market has given the Anglo American diamond miner an Underperform, Average Risk rating, citing structural and strategic challenges facing the company’s management, reported.
“We are initiating coverage on Anglo American with an Underperform, Average Risk rating and £11/share target price,” RBC said in a research note.
“The challenges facing management, besides low commodity prices and high debt, will be to reduce exposure to structurally high costs in certain Anglo Platinum mines and to address structural issues (including diamonds), both of which, we believe, will be an impediment to a re-rating of the shares, RBC said.
“Under CEO Cynthia Carroll, Anglo has continued its strategy of focusing on core materials such as coal, iron ore, and copper. With the ongoing collapse in global credit markets and a dwindling list of buyers, the potential sale of non-core assets is likely on hold for the time being. We believe investors will wait for Anglo to successfully execute its strategy before buying the stock.”
RBC said it expected dividends to be under pressure in 2009.
“With rising debt levels and declining cash flows, it is likely Anglo's dividend policy will come under review in the next 12-18 months. We believe Anglo will make a concerted effort to maintain a $1.24/sh annual dividend through the expected downturn in 2009 and possibly 2010.”
“Anglo has consistently traded at or below the group average on a P/NAV, P/E and P/CF basis over the past five years, leading us to believe it is unlikely that the company will receive premium multiples in the foreseeable future. We rate Anglo American shares Underperform, Average Risk. At the current stock price, there is a -12% total return to our target price,” said RBC.