Taking the long view on Anglo American's discount disadvantage

He hopes to hoist its return on capital employed to 15 per cent in the next two years, from just over half that now. He set that target in happier times when commodity prices were higher. Yet for all the stardust he has sprinkled on Anglo, its shares still trade at a discount to BHP Billiton and Rio Tinto - mostly because investors dislike its heavy South African exposure. But geography is not the only reason.

Financial Times