[cid:image001.png@01CFCCCF.A09D1760] Wednesday, 10 September 2014 [cid:image006.jpg@01CFCCCF.AD303CF0]
Snapshot � Company news highlights: AngloGold Ashanti to spin out NewCo and list it in UK, Wolf Minerals FY14A report, Impala Platinum deaths prompt stoppage and safety meeting, Goldcorp declares monthly dividend � Commodity review highlights: Steel rebar rebounds as record low prices spur restocking, Chinese steel production slowing in late August, Rio Tinto still expecting closures to offset supply from the majors, China gold demand picking up again?, gold at a 3m-low may spur buying amid rates outlook � Other economic news: Double-digit unemployment for Australian mining professionals � African resources update: The conflict over sanctions on conflict minerals, Todays African Proverb
Company news � AngloGold Ashanti (ANG SJ, AGD LN) to spin out and list in UK - corporate restructure and capital raising.

ANG has received approval from the South African Reserve Bank to restructure its international mining operations under a new UK holding company (NewCo), intended to be listed on the main board.

ANG itself will remain a SA domiciled business, holding a 65% controlling interest in NewCo, with the other 35% distributed to its shareholders.

In order to reduce current high debt levels, a $2.1bn rights issue is being considered, subject to shareholder approval, to redeem 35% of the companys 2020 8.5% bonds.

Source: Company Investec view: This explains the companys previous announcement of its intention to delist from the LSE.

Last financial data indicated that international operations generated c.60-65% of its gross profit and made up 75% of assets.

ANG is currently valued at ZAR68bn, US$6.3bn, �4.0bn.

So simplistically the NewCo could be c.�3bn (excluding capital raising adjustments), which would place it neatly in the gap between African Barrick (ABG LN, �1bn), Polymetal (POLY LN, �2bn) and Randgold (RRS LN, �4bn). � Wolf Minerals (WLF LN) FY14A report.

The financials are immaterial given that the company is in construction but in this regard it reports that construction is progressing well - on budget and on schedule.

Site clearing and the haul road have been completed with structural concrete placement well advanced.

The Drakelands Mine is on schedule to commence production by Q3 2015.The company ended the period with cash of A$103m and net payables of A$20m.

Source: Company � Impala Platinum (IMS SJ) deaths prompt stoppage and safety meeting.

The company yesterday held a safety awareness mass meeting with senior members of the company and trade unions after four employees died at its Rustenburg operation since work restarted after the five-month strike.

After the last fatality on Sep 5 the company suspended underground operations for two days to mourn the loss and to "re-double efforts in prioritising" health and safety initiatives.

Work resumes today.

The stoppage is not expected to affect planned production of 250koz of platinum in the 2H14.

Source: MiningWeekly Investec view: We had always expected a difficult startup for the platinum miners, following month of stagnant mining operations and the return of works with rusty safety skills.

However, Implats experience has been shocking and we hope that lessons have been learnt by all. � Goldcorp (GG US) declares monthly dividend.

The company will pay a monthly dividend of 5 US cents per share.

It is trading at $25.50 per share so equates to z 2.4% annualised yield.

Source: Company, SNL
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Commodities news � Steel rebar rebounds as record low prices spur restocking.

Steel reinforcement-bar for Jan delivery on Shanghai Futures Exchange was up as much as 1.6% to 2,812 yuan/mt as some investors stepped in to restock inventories.

The rebar inventory in China fell 1.2% to 5.55mt, the lowest level since Jan10.

It didnt help iron ore though, with spot iron ore at Qingdao Port falling 0.6% to $83.50/t yesterday, the lowest since Sept.

2009.

Source: Bloomberg � Chinese steel production slowing in late August.

According to the China Iron and Steel Association, the countrys major steel mills produced an average of 1.68mt/day of crude steel in late August, down 8.35% from the preceding 10-day period and the lowest average daily production since late March.

Source: SNL � Rio Tinto (RIO LN) still expecting closures to offset supply from the majors.

RIO is anticipating iron ore miners to slash a total of 125mt of capacity globally during the current year as prices drop to a five-year low, Reuters reported.

The cut will be roughly equal the 132mt of new output expected from Australia and Brazil in 2014.

Source: SNL, Reuters Investec view: These three articles provide some idea of the quandary market participants find themselves in amid this time of weakening steel growth and increasing iron ore supply.

There will be a bottom at some stage and a point to keep in mind is that the breakeven prices for major producers, Vale (VALE US) and Fortescue (FMG AU,) have to set a floor somewhere around $70-75/t. � China gold demand picking up again? A recent pick-up in withdrawals from the Shanghai Gold Exchange (SGE) suggests that lower prices may be starting to spur demand again.

Weekly withdrawals from the SGE for the last two weeks in August have been 46t and 42t respectively, a significant jump from earlier levels.

SGE figures may now be the only reliable indicator of demand - Hong Kong figures have dropped off enormously this year as other entry points have become more and more significant.

In the YTD the SGE has reported gold withdrawals (equating to total Chinese wholesale gold demand for the period) of 1,251t and while down 17% YoY this comes off a strong previous period and is not nearly as big a fall as many mainstream media reports, drawing on the HK figures alone, seem to imply.

Source: MineWeb � Gold at a 3m low may spur buying amid rates outlook.

The price decline will encourage purchases as investors assess the strength of the U.S.

economy and the outlook for higher borrowing costs.

The 14-day relative-strength index, or RSI, for gold reached a 3m low of 33.42 on Sept.

8 (a level of 30 suggests prices may be poised to rebound).

Data this week may show US retail sales in August up the most in 4m and first-time applications for unemployment benefits fell in the week to September 6, backing the case for the Federal to increase interest rates for the first time since 2006.

Source: Bloomberg
Other economic news � Double-digit unemployment for Australian miners.

Australian mining professionals are suffering double the national unemployment rate, according to research from the Australasian Institute of Mining and Metallurgy (AusIMM).

A survey conducted across the Institutes 14,000 members, showed unemployment at 12.2%, with geology professionals facing the highest level of unemployment at 15.1% (almost 1 in 6).

The survey indicated that 1 in 10 minerals professionals were made redundant in 2013-14.

AusIMM CEO, Michael Catchpole, has stated that "the Australian government must act to ensure that its skilled migration programs reflect the radically changed minerals employment market".

Source: MiningNews
African resources update � The conflict over sanctions on conflict minerals.

Speakers at a UN Security Council luncheon on the last day of the Africa Down Under conference in Perth acknowledged that UN and US programs running at costs of billions of dollars have failed to curb conflict mineral movements in Africa but that all hope was not lost.

It was accepted that sanctions were not a solution, but just one of many tools that governments can use to apply pressure and effect change.

Australian ambassador for the DRC and Zimbabwe, Matthew Neuhaus, said that "sanctions generally are much more effective in the way of showing righteous indignation at bad behaviour than they are at actually changing that behaviour".

Source: MiningNews � Todays African Proverb.

""A bad dancer blames the drummer"".

Source: BBC
Investec Global Natural Resources Research Team: UK South Africa
Hunter Hillcoat Tel: +44 (0) 20 7597 5182
Albert Minassian Tel: +27 (0) 21 416 1454
Marc Elliott Tel: +44 (0) 20 7597 5189
Investec Global Natural Resources Sales Team: UK Hong Kong South Africa Adam Bidwell Tel: +44 (0) 20 7597 5089
Will Robbins Tel: +852 3187 5098
Hayden Smith Tel: +27 (0) 21 416 1401
USA Thomas Lawrence Tel: +1 212 2595604
Alistair Roberts Tel: +852 3187 5097
Investec Commodity Hedging Team: http://treasury.investec.co.uk/products-and-services/commodities.html UK Callum Macpherson Tel: +44 (0) 20 7597 5070
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