Gold bars in a shop window

SA commodity shares look attractive

| Thu, 18 Jun 2009 18:57 In an interview on 702 @ 18.30 on 17 June 2009 [miningmx.com] -- The global commodity crisis will work out worse for the supply side than the demand side, market commentator Paul Theron from Vestact said.

“The consumption side can come back almost immediately once people start spending again, but a lot of expansion plans have been killed,” Theron said on 702 Talk Radio’s The World At Six.

He said all the major commodity company’s shares look attractive at their current levels. “They have softened a bit in the last few days, but I’m not too anxious about that. Commodities have been quite strong overall in the past few weeks,” Theron said.

He dismissed the recent press rumours concerning a potential takeover of Anglo American by Xstrata. “Those are garbage stories. Xstrata is arguably in a bigger pickle than Anglo is at the moment. The quality of their assets are somehow dodgy,” Theron said.

Anglo American has been doing some fund raising over the past few weeks, selling its stock in AngloGold and cutting down its debt. “Anglo isn’t in as tight a spot as it was late last year. It still has some work to do, but it can sweat it out,” Theron said.

“The people who are selling shares based on rumours need to tune out a little bit more, ignore the noise and try focus on the signal,” he added.

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