Deutsche Bank AG Says Anglo American Platinum May Sell Mines

Bloomberg reported yesterday that South African platinum miner Anglo American Platinum (LSE:AAL) could sell its mines next year, and that the sale could increase the company’s stock price, according to Deutsche Bank mining analyst Rob Clifford. Clifford also notes that Sibanye Gold Ltd. (NYSE:SBGL) could be interested in buying, according to Bloomberg.

As quoted in the publication:

Anglo American Platinum Ltd. (AMS), the unit that is the world’s largest producer of the metal, has seen output disrupted by South Africa’s longest and costliest mining strike. Anglo American plans to switch to mechanized open-pit mining from labor-intensive underground excavation, Chief Executive Officer Mark Cutifani said in April. The company is seeking to exit its high-cost, low return mines in Rustenburg in 2015, Clifford said.

Deutsche Bank mining analyst, Rob Clifford, said:

We think this offers Anglo the cleanest exit, minimizing legacy closure and employment obligations.

Click here to read the full Bloomberg article.