Anglo American is finally reacting strongly to the long term decline in resource exports say reports as it prepares to lay off up to 20% of its staff. http://www.mining.com/anglo-american-laying-off-up-to-20-of-its-staff-as-investors-press-for-further-savings/
Some report that unlike its mining peers, this group has not introduced major cuts to capital expenditure, at least not in 2014 as its corporate net debt is expected to peak later this year at up to $14 billion.
When Cutifani took over as chief executive in 2013, he criticized a culture of missed targets and underperformance. Yet more than two years on, he has improved Anglo’s operating capability — but “the company’s value is still in the pits” says one report. The group is worth a bit over US$20 billion as its stock has fallen almost 23% so far this year.
Its investors may have been “somehow patient with the firm’s lack of progress on promised asset sales”… But, …”they are now demanding further initiatives to adjust to a commodity price rout that has hit profits”. “A sense of urgency seems to be lacking.
“You can’t hang on to something forever when everybody knows it’s an unwanted asset,” Ian Woodley, portfolio manager at Old Mutual, a shareholder in Anglo American and Amplats, told Reuters Thursday. “They are quite good at promises. Delivery tends to be slower than you would be happy with.” —————–
And what of the railway and port infrastructure managers that we’re counting on future high export commodity gains in Anglo America’s previous expected traffic forecast? Have they modified their strategic rail and port investment plans?