In a video message to shareholders, Anglo American (US-OTC: AAUK; LSE: AAL) CEO Mark Cutifani said the company will dispose of an additional US$3-$4 billion in assets this year after posting a net loss of US$5.5 billion in 2015.
Underlying earnings before interest and taxes plunged 55% to US$2.2 billion last year, while impairments during the second half of the year reached US$3.8 billion. The company ended 2015 with net debt of US$12.9 billion.
Cutifani said the company expects to reduce net debt to less than US$10 billion by the end of 2016. In addition to the asset disposals, the mining executive said more than US$1.9 billion of cost and productivity business improvements would position the company to deliver positive free cash flow this year.
“We are taking decisive action to sustainably improve our cash flows and materially reduce net debt,” he said in the Feb. 16 video. “At the same time, we will be focusing on our most competitive assets – in diamonds, platinum group metals and copper.”
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