Ambrian Capital was unsurprised that Anglo American's subsidiary Anglo Platinum announced a rights issue today, so keeps its 'hold' rating on the miner.
Anglo American will subscribe in full to its entitlement to the cash call, costing it $1.3bn, a decision described by the broker as effectively a swap of debt for equity.
More broadly, Ambrian says it favours Anglo's fellow miners Rio Tinto and BHP Billiton due to their greater exposure to iron ore. It thinks Anglo American's exposure to platinum is overvalued.
Ambrian has a 2,900p target price on Anglo shares.
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Broker snap: Ambrian unsurprised by Anglo Plats cash call
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