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South Africa: The Bottom Line: Keep On Shining

7 August 2007

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Johannesburg — ANGLO American's emphasis at its results presentation last week was clearly more on acquisition than divestment of assets.

Asked by analysts whether diamonds really suited Anglo's portfolio -- a question that harks back to longstanding speculation that the Oppenheimers might be negotiating to buy out Anglo's stake -- CEO Cynthia Carroll said Anglo expected strong growth in the diamond business.

There was "huge" growth potential in China and good potential from Japan and India. She said Anglo also believed there were synergies between its other businesses and De Beers .

Anglo had launched a quarterly performance review in which De Beers would be participating and the two organisations were also examining ways to combine their efforts and capitalise on their presence in various parts of the world, including the Democratic Republic of Congo.

Asked whether Anglo might consider buying out minorities and delisting Anglo Platinum and/or Kumba Iron Ore, and whether such a move would be approved by the South African regulators, Carroll said there were no restrictions on Anglo doing so.

Whether it did was a question of how such an investment would compare with an investment in other assets.

Carroll did not believe that Anglo's decision to exit its 42% stake in AngloGold within the next two years was having any bearing on AngloGold's share price . She said Anglo had a lot to offer AngloGold in the way of mining expertise and in its depth of knowledge of the business.

But there was no question of reconsidering the decision to exit AngloGold.

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