- Cutifani says price rout eroded $350 million of sales a month
- CEO flags `significant changes' at copper business this year
Anglo American Plc, the worst performer on the U.K.’s FTSE 100 index last year, sees no respite in 2016 as a rout in commodity prices erodes revenues by $350 million a month.
“We can’t rely on a reversal of this price slump any time soon,” Chief Executive Officer Mark Cutifani told investors and other mining executives at an industry conference in Cape Town, South Africa on Monday. “For many of us in the industry, 2016 is already shaping up to be the most challenging yet.”
Cutifani is due next week to outline a plan to overhaul the company to try to turn around its fortunes. In December, the producer told investors it would dispose of more than half of its mines. Mining companies have been forced to scrap dividends and sell shares after taking on too much debt in the years when they could still get high prices for their output.
Anglo fell 3.1 percent to 352.2 pence by 10:31 a.m. in London. The stock is up 18 percent this year after plunging 75 percent in 2015.
“Opinions are divided on whether we have reached the bottom of the cycle,” Cutifani said. “Things may still get worse before they get better. If we don’t adapt, we perish.”
Cutifani also flagged significant technological changes at Anglo’s copper business, to be detailed this year.