A really big company that perhaps does not get the exposure that it deserves, Assore released a trading update. Why I make that comment is simple, it hardly ever gets talked about, but yet commands a spot inside of the top 40 companies by market capitalisation. In fact it is bigger than ArcelorMittal that gets a whole lot of attention. Mainly because their main asset is a fifty percent interest in Assmang, the other half is owned by African Rainbow Minerals.

The market capitalisation of the business is just shy of 32 billion Rand. The market obviously enjoyed the trading update yesterday and bought the stock up over three percent. Even though the beginning of the message started out glum, the tone improved as you scrolled down. Lines like: “Shareholders … are advised that the European sovereign debt crisis continues to have a negative impact on the demand for the Group’s commodities” Sis. And except for iron ore, all the other prices of the commodities that they produce were lower. But fear not, there was a cushion of the Rand involved, which was weaker through the period. Yes, we remember, the local currency was one of the worst performers last year.

But, notwithstanding all this gloom, the company anticipates that it will earn on a per share basis for the half year in the region of 18.01 to 19.91 ZAR per share. Half year. The stock trades at 228 ZAR. At the close yesterday. Much fewer shares in issue too, the company has been using these big windfalls to buy back stock. Not the most generous dividend payer. The stock is up another 1.75 percent today. We will take a closer look in a couple of weeks when they release results.

Sashar Naryshkine at Vestact

Tags: #Assore, #commodities