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The End Of Heavy Metal?

25 July 2017 by lberuti

The reporting season began a couple of weeks ago, and is now in full swing. Numbers have managed to trigger some price moves, but most were kept in check as surprises have been few and far between. AALLN (Anglo American Plc) will not report before Thursday, but it benefitted today from unexpected good news from one of its subsidiary: Kumba. Kumba is a supplier of high quality iron ore to the global steel industry from its operation in South Africa. It reported its earnings for the first half of 2017, and announced that it will resume paying dividends for the first time since halting payouts in 2015 amid a collapse in ore prices. The 69.7% that AALLN owns in the company will enable it to report $210mln in underlying earnings. It lifted investors’ mood and they sent AALLN’s 5-year risk premium 5bps tighter at 145bps.