News

January 02, 2008

Anvil Hammers Out Top Profits In The Dark Heart Of Africa

By Our Man In Oz

Life is full of meaningless moments. Last week, Minesite’s Man in Oz had a particularly silly thought about what he calls the “Congo Discount”. It went like this. ASX and TSE listed Anvil Mining, which is well on the way to becoming a globally-important copper producer thanks to a production target of 100,000 tonnes of the stuff by 2010, is unpopular with some of the more sensitive souls in the media, and because of that not well followed by investors in its home country of Australia. In fact, it is so unpopular that when Minesite’s Man suggested to the editor of a rival media outlet that he really ought to take a closer look he was dismissed out of hand because: “isn’t Anvil one of those companies in the Congo?”. Yes, dear editor, it is a company in the Congo. But, it’s also a company with a clean bill of corporate health, unlike some others, three operating copper mines and a list of record-breaking operational and financial achievements as long as your arm.

In fact, a dispassionate look at Anvil and its treatment in Australia leads to a conclusion that its ASX listing might not last forever. European and North American investors have a much greater comfort level with African opportunities, and it’s easy to see ultimate ownership of the stock drifting away from its home base, with a positive effect on the share price which took one of its routine knocks in early November on reports of a Congo Government inquiry into mining contracts. From a price...