🥇 First rule of investing? Know when to save! Up to 55% off InvestingPro before BLACK FRIDAYCLAIM SALE

UPDATE 1-Anglo American names new finance director

Published 23/09/2016, 05:54 pm
© Reuters.  UPDATE 1-Anglo American names new finance director
FMG
-
AAL
-
HG
-
FTNMX551030
-

* New CFO takes office from next April

* Previous CFO had announced retirement last April

* Analysts cite strong track record in cost-cutting (Updates throughout with context, comment, share price)

By Barbara Lewis and Rahul B

LONDON/BENGALURU, Sept 23 (Reuters) - Global mining company Anglo American Plc AAL.L on Friday named a new finance director with a track record in cost-cutting and debt reduction at Australian iron ore giant Fortescue FMG.AX .

Anglo American has been among the companies hardest hit by a deep commodities slide that last year saw miners stack up uncomfortable levels of debt and announce a flurry of asset sales.

Miners and commodity markets have since recovered and Anglo's shares have risen around 200 percent this year. On Friday, they eased around a percent in line with the broader sector. .FTNMX1770

Stephen Pearce, chief financial officer at Fortescue Metals Group Ltd, will join the Anglo American board on Jan. 30 and take up his position as CFO in April, allowing a transition period. predecessor Rene Medori, who leaves Anglo American at the end of next year and will step down from the board next April, announced his retirement in April this year. 52, has been CFO of Fortescue Metals Group since 2010 and has around 30 years experience in mining and energy.

He helped to steer Fortescue through strong growth and also had to address the challenges of last year's slump in iron ore prices, in part through highly competitive cost-cutting. strong relationships with the debt and equity capital markets have proven immensely valuable in his role at Fortescue, as has his work across complex cost and other efficiency performance programmes," Anglo Chief Executive Mark Cutifani said in a statement on Friday.

"Through the portfolio restructuring and business improvement and efficiency programmes, we will create a very different investment proposition for Anglo American's shareholders," Pearce said.

Analysts agreed he was a strong choice.

"The critical issue will be whether he continues the conservative discipline that we have seen take precedence under Rene Medori over last few years," Paul Gait of Bernstein said.

"The general consensus would be that he did a good job at FMG, focussing on cutting costs and paying down debt," Edward Sterck of BMO Capital Markets said.

In response the commodities slump, Anglo American announced plans to slim down to 16 core assets from 45 previously, focusing on diamonds, platinum group metals and copper.

Its most striking asset disposal so far has been the sale of its niobium and phosphate businesses in Brazil to China Molybdenum for $1.5 billion, which analysts said was a big success towards shoring up its balance sheet. (Editing by Gopakumar Warrier and Susan Thomas)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.