By playing the role of would-be acquirer to junior miners, South32 (S32) has won lots of fans at the foot of the sector’s food chain. When the Perth-headquartered diversified group upped its stake in Aldebaran Resources (CA:ALDE) this month, shares in the C$135mn (£79mn) Canadian developer leapt more than 10 per cent.
Tip style
Growth
Risk rating
High
Timescale
Long Term
Bull points
- Consistent earnings and payouts
- Growth portfolio with good US exposure
- Entrepreneurial approach to investing
- Dividends set to rebound next year
Bear points
- Historic returns lag peers
- End-market price volatility
Even if majors buy in at a discount, such actions are the dream of the small-cap mining investor. South32 has also opted for the sainted full-scale buyout several times in recent years, and more consistently than other major miners.