H1 results (especially profitability) were pretty weak, with the negative effect of COVID-19 being compounded by disruptions in PGMs and met coal. Cash flows were further impacted by temporary working capital build-up. Hence, dividends were cut by >50%. While copper and iron ore should provide valuable comfort, the concentration of operations in pandemic-vulnerable regions like Africa and LatAm is a major risk. As scope of any pertinent near-term recovery is unlikely, we are likely to main
04 Aug 2020
Profitability and (hence) dividends were hammered
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Profitability and (hence) dividends were hammered
Anglo American plc (AAL:LON) | 2,110 0 0.0% | Mkt Cap: 28,223m
- Published:
04 Aug 2020 -
Author:
Varun Sikka -
Pages:
5
H1 results (especially profitability) were pretty weak, with the negative effect of COVID-19 being compounded by disruptions in PGMs and met coal. Cash flows were further impacted by temporary working capital build-up. Hence, dividends were cut by >50%. While copper and iron ore should provide valuable comfort, the concentration of operations in pandemic-vulnerable regions like Africa and LatAm is a major risk. As scope of any pertinent near-term recovery is unlikely, we are likely to main