It had its credit rating lowered by Moody’s to “junk”, and today it just posted a pre-tax loss of a whopping £3.8 billion. However, Anglo American shares were trading higher today, at one stage by 6%. Why? Essentially, they’ve also announced that they are going to sell assets in order to raise up to $4 billion, and they have also suspended their dividend to keep as much cash as possible. If you listen to their passionate CEO, Mark Cutifani, they “never fail” to meet a reduction in debt targets. So is there some light at the end of the tunnel? With the Chinese economy slowing down and metal prices still falling, it could be a long, hard road to recovery for the global mining giant.
As it happens, the share price of the stock has totally reversed since I began writing this article. They are now trading 5% lower at 372p. It seems as if the market is as sceptical as I am that the road to recovery is now on!
Vinay Sharma, Senior Trader
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