The world's fifth largest miner wants to accelerat

2022-07-28
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The world's fifth largest miner wants to accelerate its exit from the coal and iron ore business

the world's fifth largest miner wants to accelerate its exit from the coal and iron ore business

China Construction Machinery Information

Anglo American PLC's losses more than doubled in 2015 and was forced to disclose a more radical asset sale and cost reduction plan to cope with the sharp decline in commodity prices

the world's fifth largest diversified mining company (by market value) announced that it had a net loss of $5.6 billion in fiscal 2015, compared with a net loss of $2.5 billion in the previous year. The expansion of the loss was due to the asset impairment of $3.8 billion and the decline in commodity prices; The annual revenue was US $23billion, a year-on-year decrease of 26%; Excluding special items, the earnings per share was US $0.64, slightly lower than market expectations

after four consecutive years of losses, Anglo American has stepped up efforts to "reduce expenditure and slim down", striving to achieve positive free cash flow from 2016. The division plans to reduce its debt to less than 10billion US dollars by the end of the year, and sell loss making mines. It aims to divest assets of 6billion US dollars by the end of the year. Previously, it planned to total 4billion US dollars this year and next

the mining giant listed in the UK said that it is now reviewing the Kumba iron ore business in South Africa and may spin it off at an appropriate time; Moranbah and Grosvenor coal mines in Australia are also under consideration, hoping to speed up their exit from the commodity market; The group will also sell its nickel business

"we have many options (referring to Kumba iron ore business), whether we decide to sell it or get some by-products from it," said Marc cutifani, CEO of the company, in an interview with CNBC. He said that Anglo American is only a small player in the iron ore field and hopes to focus on diamonds, platinum and copper. "Objective Jinan experimental machine factory produces short supply in order to focus on bulk commodities based on personal consumption."

according to Reuters, he also said that the company plans to completely withdraw from the coal business to cope with the sharp drop in global commodity prices

shortly before it announced its financial results and this series of restructuring measures, moody's Investors Service became the first credit rating company to downgrade its credit rating from investment grade to junk grade, reflecting the difficulties faced by heavily indebted mining companies in rapidly restructuring their businesses to tide over the continued downturn in commodity prices

if the price of bulk commodities remains depressed or falls further for a longer time, Anglo American will face risks in implementing the restructuring plan and further reducing its net debt. In view of this, Moody's downgraded Anglo American's rating by three notches, from baa3 to ba3, maintaining a negative rating outlook

subsequently, James Wyatt TILBY, a spokesman for Anglo American, issued a statement on stretching, twisting, tightening or pulling the plastic material spline via e-mail, saying that the impact of the downgrade on the operation and financial status was limited. He said Anglo American was taking necessary measures to further strengthen its financial position with a view to regaining a strong investment grade credit rating. The company would release details of these measures on Tuesday

in fact, before the latest asset sale and cost reduction plan was announced, Anglo American announced one of the most drastic restructuring measures among large miners in December: 85000 layoffs, accounting for nearly 2/3 of the total number of employees; The restructuring plan includes the sale of assets, substantial cost cuts and the suspension of dividends

the repeated expansion of asset sales and cost reduction plans shows that Anglo American expects that the cold winter of commodities will be very long. CEO cutifani said at a mining conference last Monday that for the purpose of the mining industry, it is stipulated in the exterior wall insulation building structure (1) that XPS boards are only used for the supply before the first floor. 1. we can only blame ourselves for the excess of hollow materials such as pipes, and do not expect the sharp decline in commodity prices to end soon

he also said that for some producers, it may not make sense to adjust supply to meet the decline in demand growth, because they want to defend market share and drive competitors out of the market. "Overall, this strategy will eventually have a negative impact."

"in addition, we can't expect this round of price slump to end soon. 2016 will be the most challenging year. People hold different opinions on whether the market has hit the bottom."

in this regard, Moody's holds the same view. As the economic downturn may be more serious than previously expected and may last longer, Moody's believes that commodity prices are still facing downward risks under the circumstances of global economic uncertainty and China's economic growth slowdown

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