Avior Capital Markets - SA Diversified Miners | Attractive yields amidst uncertainty

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Avior Capital Markets

Matthew Shields

SA Diversified Miners | Attractive yields amidst uncertainty

We remain cautious over the potential impact that political uncertainties and moderating global growth could have on commodity prices in the short-term. However, Free Cash Flow and shareholder yields remain attractive. In addition, with net debt/cash towards the bottom of management targets, we believe there is increased opportunity for excess cash to be returned to shareholders. Given the recent run in the diversified mining sector (+14% YTD), we would recommend moving from a sector overweight to a sector natural position. EXX is out top pick in the sector while AGL is our top pick amongst the majors.

05/03/2019 33 EN

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Avior Capital Markets

Avior is a globally recognised capital markets research and trading firm, with the broadest research coverage within the region, with 100+ SA and 20+ SSA companies under coverage. Avior services clients from offices in London, Cape Town and Johannesburg.

Our research quality is consistently recognised in local and global surveys, with 18 analysts currently rated in their respective sectors (FM 2017). Value add through in-depth, innovative, high quality and consistent research with comprehensive underlying fundamental modelling supported by regular analyst and roadshow interactions.

Avior has proven that by working closely with our clients we can mutually develop dominant positions in certain sectors, going from strength to strength. Avior has a dedicated ESG team, having been ranked #1 in Corporate Governance research since 2008.

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Analysts

Matthew Shields

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SA Diversified Miners | Attractive yields amidst uncertainty

Tiger Brands | ESG | Pressed to execute

SA Investment Strategy | Review of January 2020 for SA investors: Coronavirus weighs on the ZAR

SA Banks | Low credit risk in commercial property | Time to buy SA banks

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