It’s being touted as the worst kept secret in the “city”, but Anglo American announced today that it was scrapping its dividend to shareholders. With this news, it also announced that profits will be at least 20% lower this year as the precious metal producer struggles to cope with the slump in commodity prices, as well as other restructuring costs.
As it stands the stock is down over 8% this morning at 338p, and most of the other mining companies in the FTSE are taking a hit. The question is, will investors now see value in a stock which is down 70% Year to date or will the exodus continue?

Good Luck,

Vinay Sharma, Senior Trader

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