MARKET TALK: Anglo American 1H Results Neutral - Citi

30th Jul 2010 09:57

0857 GMT [Dow Jones] Anglo American's (AAL.LN) first half results "could have a neutral to positive impact on Anglo's share price, as a positive earnings surprise is offset by more bad news on Minas Rio," says Citigroup. Anglo reported rise in 1H 10 underlying earnings per share to $1.84, beating Citi's forecast of $1.65 by 12%, the bank says. Reinstatement of the dividend "points to a positive outlook" and Anglo says it intends to reinstate its progressive dividend policy, another positive, the bank says. But the company has reported more bad news on Minas Rio. Capex for phase 1 of Minas Rio could go up by $750 million to $4.55 billion with commissioning now pushed out to 3Q13 compared to previous expectations of 4Q12. Citi has a 3600p target price and buy rating on the stock. Anglo American flat at 2540p. ([email protected]) Contact us in London. +44-20-7842-9464 [email protected] (END) Dow Jones Newswires July 30, 2010 04:57 ET (08:57 GMT)