* FY2010 results on Friday —
* Strong recovery — We forecast:
– 24% growth in diamonds recovered to 32.2 million carats
– a 34% increase in rough diamond sales to US$4.8bn, thanks to higher sales volumes and better prices
– a 43% increase in EBITDA to US$1 148m
– Net earnings before once-off items of US$367m, a dramatic improvement on last year’s loss of US$37m.
* BUY Anglo American — Anglo offers attractive production growth and we believe it could sustain margins over the next five years. Continued non-core asset disposals will likely continue to provide positive catalysts. In addition, news on Anglo’s major stumbling block, the Minas Rio iron ore project, has turned more favourable recently. We forecast c.91% EPS growth in FY10 and c.21% in FY2011 as commodity prices and production recover and its restructuring gains traction.