IGO to record impairment against nickel assets in strategy shift
IGO has been undertaking a strategic review in an attempt to revaluate its resources.
Anglo American (LON:AAL) said Tuesday it needs to find about $2 billion of earnings before interest and tax to meet the return on capital target set for 2015, citing the ongoing slide in commodity prices as the main reason.
In a statement before the company’s investor day conference in London, chief executive Mark Cutifani also revealed the company is axing its capital expenditure guidance for 2014 by $500 million, down to $800 million, and for 2015 by $800 million to $1 billion.
“We have delivered on our major commitments to shareholders,” said Cutifani. “We have successfully turned around a number of our priority operations this year, principally in our copper, Kumba Iron Ore and coal businesses.”
According to Anglo’s boss, who began a review of operations from Australia to Brazil after joining the firm in April last year, 71% of the group’s “priority assets” are now performing better than expected, compared with only 21% in 2012.
However Cutifani revealed the firm was ready to sell the Callide and Dartbrook coal assets in Australia and evaluating the future of its South African coal operations too.
The company stock was down 1.8% to 1,222 pence per share on Tuesday afternoon. It has fallen almost 5% since Friday.
Source: Google Finance.
