An­glo plans to cut an­nual div­i­dend

CityPress - - Busi­ness -

An­glo Amer­i­can plans to re­duce its an­nual div­i­dend af­ter met­als prices fell to the low­est in about six years, ac­cord­ing to two peo­ple with knowl­edge of the plans.

The pro­ducer may an­nounce the cut as soon as Tues­day, when it hosts an in­vestor day in Lon­don to up­date share­hold­ers on plans to com­bat the China-led com­modi­ties down­turn.

The miner also plans to move its div­i­dend to a ra­tio-based pay­out, which al­lows com­pa­nies to ad­just pay­ments as prof­its rise or fall..

Spec­u­la­tion that An­glo may fol­low Glen­core in cut­ting its div­i­dend has in­creased as the largest min­ing com­pa­nies con­tend with the rout in raw ma­te­rial prices.

An­glo’s stock slid 25% last month on in­vestor con­cerns about its abil­ity to weather the slump in all the com­modi­ties it mines, from iron ore and plat­inum, to cop­per and di­a­monds. An An­glo spokesper­son de­clined to com­ment. An­glo’s big­gest in­vestor, the Public In­vest­ment Cor­po­ra­tion, said in Septem­ber that it would back any ini­tia­tives by the com­pany to en­sure a sus­tain­able fu­ture. An­glo sur­prised in­vestors by main­tain­ing its in­terim div­i­dend in July, when CEO Mark Cu­ti­fani said the an­nual pay­out was un­der re­view.

Cu­ti­fani’s at­tempts to turn around An­glo’s for­tunes have failed to stem the com­pany’s slide – it has tum­bled 67% this year.

An­glo’s net debt to­tals $11.9 bil­lion (R171 bil­lion) and it has a long-term bor­row­ing tar­get of $10 bil­lion to $12 bil­lion. The div­i­dend costs the com­pany more than $1 bil­lion a year.

– Bloomberg

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