Anglo changes strategy on planned asset sales
The producer will keep its nickel and metallurgical coal mines, but pushes ahead with the sale of three collieries and New Largo project
Anglo American reversed its strategy of disposing of all but 16 of its mines in three commodities, opting to retain its nickel and metallurgical coal mines and, it would seem, Kumba Iron Ore and its export thermal coal mines in SA. In a major shift in strategy, Anglo CEO Mark Cutifani had to justify the 100-year-old diversified miner’s change in attitude towards its bulk commodity assets in response to repeated and pointed questions from analysts, during Tuesday’s full-year results presentation, wanting to know what had informed the decision, particularly around its assets in SA. Jason Fairclough, an analyst at Bank of America Merrill Lynch, said this was the third strategy Anglo had unveiled in 15 months and wanted to know what investment case could be made for Anglo. Fraser Jamieson of JP Morgan said six months ago Cutifani had defended the sale of iron ore and coal assets despite improving prices of these minerals, arguing long-term supply and demand fundamentals supported Anglo’...
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