On the rebound
IN THE MIDST of global economic turmoil, one country still shines as a beacon of growth among stagnation – China. This renewed growth was confirmed by the release of HSBC’s PMI data release, which came in at 50.4, above the key 50 level and the first sign of expansion in 13 months. In terms of South African equities, growth in China means one thing, increased demand for natural resources. This leads me to this week’s punt – Assore.
Often overlooked, Assore has offered steadily increasing returns over the years.
Assore is a mining holding company principally engaged in ventures involving base minerals and metals. The group’s principal investment is a 50% interest in Assmang, which it controls jointly with African Rainbow Minerals. Assmang mines manganese, iron and chrome, among others, all highly sought after by the Chinese. As with most resource stocks though, Assore isn’t cheap but with a healthy dividend yield and solid long-term potential, it’s worth a small percentage of your portfolio.