Broker snap: Anglo could lose a 'key growth pillar', says Credit Suisse

13th Oct 2011 12:55

Credit Suisse has reiterated its neutral stance on mining giant Anglo American, saying that if a large share of the Los Bronces project in Chile is sold, then the group could lose part of a "key growth pillar".The broker says that it appears that Codelco could exercise its option to acquire a 49% non-controlling interest in Los Bronces, the open pit copper and molybdenum mine."The price that Anglo will receive is still unknown but will be based on a formula that considers 5 year profitability. The backward looking nature of the calculation (not disclosed) indicates Codelco could potentially capture the volume uplift over the next 2 years without the price reflecting the growth," said analyst Michael Shillaker."Questions over Anglo's growth policy and overall strategy will also likely arise, in our view."The target price stays at 3,500p.By 12:49, shares were trading 4.69% down at 2,306.5p.BC