+

Cookies on the Business Insider India website

Business Insider India has updated its Privacy and Cookie policy. We use cookies to ensure that we give you the better experience on our website. If you continue without changing your settings, we\'ll assume that you are happy to receive all cookies on the Business Insider India website. However, you can change your cookie setting at any time by clicking on our Cookie Policy at any time. You can also see our Privacy Policy.

Close
HomeQuizzoneWhatsappShare Flash Reads
 

Anglo American's shares just jumped despite a 161% rise in losses

Feb 13, 2015, 14:13 IST

Anglo American shares jumped in the market open despite posting some huge writedowns.

Advertisement

It unveiled a £2.5bn writedown on its iron-ore and coal-mining assets as volatile commodity prices made it cut prices.

Revenue also tumbled by 7.7% to £17.5 billion.

The mining giant unveiled a massive net loss for 2014 of £1.62 billion. This is worse than the losses it posted in 2013 and 2012, at £624 million and £954 million, respectively.

In fact, it equates to a 161% jump in losses.

Advertisement

So, why are the shares rising in the market open?

Google Finance 13 Feb

Well, despite the top line figures, Anglo American said it aims to complete the iron ore Minas Rio project at $400m under budget and will stick to a range of cost cutting measures.

It also believes that the group will be able to ride out the storm of volatile commodity prices and has a diversified enough portfolio to protect it.

"2014 was a year of significant operational improvement against sharp commodity price declines amid generally adverse market conditions," said Mark Cutifani, CEO of Anglo American in a statement. "We delivered on our major operational and portfolio commitments to shareholders, including delivering Minas-Rio, defining our future platinum business and resetting the performance of our operations."

Advertisement

"Despite the headlines of economic uncertainty and geopolitical tensions, the underlying fundamentals of our business - applying world class technical skills to world class assets - remain attractive over the long term. In the immediate term, I expect tough trading conditions to prevail during 2015, but we are determined to continue to build on our already very significant operational improvements, drive towards an effective and efficient organisation and culture, and to be unwavering in our capital discipline."

NOW WATCH: A 13-Year-Old Made A Revolutionary Invention Out Of Legos And Now Intel Is Investing In His Company

Please enable Javascript to watch this video
You are subscribed to notifications!
Looks like you've blocked notifications!
Next Article