4th Dec 2015 10:03
LONDON (Alliance News) - Mining major Anglo American PLC plans to slash its dividend and change its dividend policy so it is more in line with the company's performance, but the company's chief executive has declined to comment the speculation, reported the Wall Street Journal on Friday.
The mining industry has been hit throughout 2015, with numerous commodity prices falling in 2015 causing volatility in the market forcing miners to cut costs and defer expenditure.
Anglo American already announced plans earlier this year to cut its workforce by around a third, slashing 53,000 jobs, and the news that it may sacrifice its dividend to bolster its balance sheet follows on from fellow FTSE 100-listed miner Glencore PLC cutting its dividend in 2015 for similar reasons.
The Wall Street Journal said Anglo American plans to cut its dividend and amend its policy so its payout to dividend ratio is more aligned with the company;s performance - meaning dividends would rise with earnings and vice versa.
The WSJ cited people familiar with the matter, but said Chief Executive Mark Cufitani declined to comment on the prospect of a dividend cut but conceded he was talking to shareholders and "considering what to do with the payout," said the WSJ.
http://www.wsj.com/articles/anglo-american-plans-to-slash-dividend-sources-1449166761
Still, Anglo American shares were trading up 0.9% to 390.25 pence per share Friday morning, the third best performer on the FTSE 100.
By Joshua Warner; [email protected]; @JoshAlliance
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Anglo AmericanGlencore