Anglo’s New Chief Cutifani to Review Assets, Commodity Portfolio
Mark Cutifani, who today replaced Anglo American Plc (AAL) head Cynthia Carroll, will assess the company’s assets and commodities within the next four months to ensure it’s squeezing the most value from its businesses.
“I’ll look at the portfolio, the commodities we’re in,” Cutifani said in an interview broadcast on the company’s website. “Are they the right commodities for the future?”
Cutifani, 54, was named as chief executive officer three months ago. Carroll quit in October after Anglo lost about $14 billion in value during her tenure and suffered cost blowouts and delays at an $8.8 billion iron-ore project in Brazil. The company also mines coal, copper, precious metals and diamonds.
“The assets: are they competitive?,” Cutifani said today. “Are they as good as they could be? Should we be doing things differently to realize value?”
The new CEO also plans to assess the balance sheet after London-based Anglo swung to a loss last year amid asset writedowns, strikes in South Africa and lower commodity prices. While there’s “always some uncertainty” in commodities markets, global growth will bolster demand, he said.
“In terms of water, energy, commodities, the world is short,” according to Cutifani. “If the world is going to continue to grow at better than 3 percent, we don’t have enough of any of those products to actually support that growth.”
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