Anglo American's Loss in 2015 Twice The Size of Forecast

Finance and Trade
16/02/2016 10:06

Mining giant Anglo American, which owns 85% of De Beers, has reported a pre-tax loss of $5.5 billion for 2015 – more than double the loss reported in 2014 – as the company wrote off $3.8 billion due to sharply declining commodity prices. Chief executive Mark Cutifani said the state of the global economy left the mining industry facing "significant challenges". In a bid to deal with the financial hurdles facing it, the miner plans to sell assets worth $3 billion to $4 billion to repair its finances.

It is seeking to get rid of 70% of its assets to focus on 16 core assets focused on three core commodities: diamonds, platinum and copper. That compares to the state of its business in 2014 that operated 55 assets across a portfolio of seven different commodities, including bulk commodities such as iron ore and coal.