London - Anglo American has overtaken Glencore in a race neither wants to win.
Radical cuts across Anglo American’s operations that CEO Mark Cutifani says are aimed at delivering a “resilient” business, have so far turned the company into the year’s worst performer on the FTSE 100 index of major UK shares.
“Alarm bells will be ringing at Anglo headquarters this morning,” Yuen Low, a mining analyst at Shore Capital Stockbrokers, said in London. “They have taken drastic action but it may not be enough.”
Anglo has sunk 76 percent this year, narrowly beating Glencore’s 74 percent drop. While the broader industry has tumbled this year in the face of a Chinese economic slowdown, the two producers’ debt piles have drawn the greatest concerns among investors.
Anglo fell as much as 14 percent in London on Wednesday to a record low and is set for the biggest two-day drop since 2008. The stock fell 12 percent Tuesday after the company accelerated turnaround plans to include 85,000 job cuts and a scrapping of its dividend.