Tag Archives: Anglo American

Anglo American downgraded to junk

Yesterday, Anglo American’s surged 8.27%, yet, in spite of the strong performance, Moody’s Investors Service became the first credit-ratings agency to downgrade Anglo American’s credit rating, by three notches, to junk status. As it stands, Anglo American now has a credit rating of Ba3 from Moody’s, from Baa3 previously, while the ratings agency has also maintained its negative outlook on the group given the risks associated with executing its restructuring plan and reducing its net debt. It will be a busy day on the market for Anglo, with the group also expected to release results this morning.
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Anglo American: Another Disposal

Most basic resource stocks ended the day sharply lower, following further declines in the oil price and global equity markets. Anglo American ended 7.5% down and was offered no respite, despite releasing a SENS detailing its decision to sell its Callide mine in Australia to Batchfire Resources for an undisclosed amount. Callide, an open pit thermal coal mine, produced 5.6mn tons in the first months of 2015 and is one of the four Australian coal mines that the group plans to sell. This follows on from a major restructuring plan that was announced at the end of last year.
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Anglo American: Down down down

Anglo American experienced another torrid day on the market. On the JSE, the stock fell 7.07% to trade at R88.71, while the group lost 7.7% to £4.122 in London. The declines stem from a report by HSBC, in which the banking group cut its target price for the beleaguered company to £4.10. In addition, the bank anticipates “more near-term pain” and also raised concerns about the group’s cash burn and prospective dividend payout. The mining company is currently seeking to raise $3bn by trimming costs and selling assets, and has thus far raised about $2bn by exiting a variety of operations.
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Stock Focus: Anglo American (AGL)

Anglo American PLC (Anglo American) is one of the worlds largest diversified mining companies. It’s portfolio includes bulk commodities, which consist of iron and manganese, metallurgical and thermal coal; base metals, which consist of copper, nickel and niobium; precious metals and minerals, which include platinum and diamonds. The company operates in Africa, Brazil, Chile, North and South America, Australia, China, India, Japan and Europe.

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