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!

Good Luck,

Vinay Sharma, Senior Trader

*******************************

Disclaimer

The views and content expressed above are the views of the author and do not reflect the views of ayondo markets. This service is for information only and should not be interpreted as investment advice or any recommendation to enter into a financial transaction.

« Back to the ayondo Blog