ANGLO American will streamline its asset portfolio to De Beers, platinum and copper, holding just 16 assets down from 55, as it tackles the debt it is struggling to reduce in the current weak global market.
Anglo American sold $2.1bn of assets by the end of its 2015 financial year, in which it posted a loss of $5.6bn compared with a loss of $2.5bn the year before.
Anglo outlined plans in December last year to restructure its portfolio to between 20 and 25 assets, down from 55 and cutting its workforce to about 50,000 people, an 85,000 reduction.
It plans to raise between $3bn and $4bn of asset sales to bring net debt to $10bn or less this year.
Revenue fell to $23bn from $31bn.
Anglo reduced its net debt by $600m in the second half of its last financial year. Anglo’s net debt at the end of December stood at $12.9bn.
Anglo would be free cash flow positive this year, said CEO Mark Cutifani.
Ratings agency Moody’s cut Anglo’s credit rating to junk on Monday.
"The company now faces a higher business risk due to deterioration in commodities market conditions, and a longer and more uncertain de-leveraging period than previously expected," Moody’s said in a statement on Monday, adding there was deep concern about Anglo’s ability to raise funds by selling assets in a depressed global commodity market.
A worker walks past a board outside Anglo American offices in Johannesburg. Picture: REUTERS/SIPHIWE SIBEKO
ANGLO American will streamline its asset portfolio to De Beers, platinum and copper, holding just 16 assets down from 55, as it tackles the debt it is struggling to reduce in the current weak global market.
Anglo American sold $2.1bn of assets by the end of its 2015 financial year, in which it posted a loss of $5.6bn compared with a loss of $2.5bn the year before.
Anglo outlined plans in December last year to restructure its portfolio to between 20 and 25 assets, down from 55 and cutting its workforce to about 50,000 people, an 85,000 reduction.
It plans to raise between $3bn and $4bn of asset sales to bring net debt to $10bn or less this year.
Revenue fell to $23bn from $31bn.
Anglo reduced its net debt by $600m in the second half of its last financial year. Anglo’s net debt at the end of December stood at $12.9bn.
Anglo would be free cash flow positive this year, said CEO Mark Cutifani.
Ratings agency Moody’s cut Anglo’s credit rating to junk on Monday.
"The company now faces a higher business risk due to deterioration in commodities market conditions, and a longer and more uncertain de-leveraging period than previously expected," Moody’s said in a statement on Monday, adding there was deep concern about Anglo’s ability to raise funds by selling assets in a depressed global commodity market.
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