IGO to record impairment against nickel assets in strategy shift
IGO has been undertaking a strategic review in an attempt to revaluate its resources.
Sishen mine, located in South Africa’s Northern Cape Province, is Kumba’s flagship operation and one of the largest open-pit mines in the world. (Image by Rogiro, via Flickr Commons)
Shares in Anglo American (LON:AAL) went down the slippery slope Friday after two of its business divisions — Anglo American Platinum (Amplats) and Kumba Iron Ore— warned they expected full-year earnings to shrink more than previously flagged.
The miner shed over 3.7% and was still down in late afternoon trading in London as Amplats said it expected full-year headline earnings to drop up to 55%, a larger decline than the 20% calculated in December, as the platinum unit is still feeling the effects of a five-month strike.
South Africa-based Kumba, which owns Africa’s largest iron ore mine Sishen, said full-year profit fell as much as 31% after the steel-making metal’s price almost halved last year, hurt by slower steel demand in China.
The subsidiary warned its headline earnings per share for 2014 were expected to fall by between 26% and 31%, compared to the 20% it flagged in November last year.
Anglo American is also said to be mulling the sale of a cluster of coal assets in eastern Australia as it struggles to boost shareholder returns during a slump in commodities prices. The company is one of the world’s largest coal producers.
