Anglo American Plc should cut its interim dividend amid a collapse in commodity prices, according to Investec Plc.
“It would be sensible for Anglo American to cut its dividend,” Investec said in a note Thursday to investors. “At current commodity prices, management has little choice but to focus on balance-sheet preservation in order to navigate a sustained downturn.”
Anglo Chief Executive Officer Mark Cutifani is seeking to cut jobs, sells mines and lower costs as investors fret about Chinese growth. China is set to expand at its slowest pace in a quarter-century, sapping the country’s demand for commodities and crimping mining companies’ profits.
Anglo, which fell to the lowest in 12 years on Tuesday, suspended its dividend in 2009 during the financial crisis.