Commodity Price Drop to Force Miners to Increase Asset Sales

By Unknown

Jumat, 27 Mei 2016

Commodity Price Drop to Force Miners to Increase Asset Sales

Three of the five children of the world will need to step up asset sales in the second half of this year address a $ 14 billion annual target in their race to reduce debt, with a recent rebound in prices of basic products considered short.

biggest miners in the world pessimism predicted for 2016 six months ago when they booked their biggest gains in more than a decade, reduced dividends and to a network of copper, coal, ore iron and other assets on the block.

Glencore (GLEN.L), Anglo American (AAL.L) and Vale (VALE5.SA), have so far raised $ 5.4 billion from the sale of assets, less than half of their target, delaying efforts to reduce debt and increase their battered credit ratings.

investors will be looking to see how much pressure miners feel about the pace of sales when presenting the results in the coming weeks, led off by Anglo American and Vale Thursday.

"prices of commodities take some pressure on companies to sell, but the situation remains tense," said David Finger, an analyst at Allianz Global Investors in London.

Asset sales lost steam in the middle of a first-half rebound in commodity prices fueled by China's efforts to consolidate growth. the iron ore and coal rallied around 30 percent and prices copper rose about 7 percent, which makes the sense of urgency for vendors while waiting bidders gatherings for Fizzle.

But bankers, analysts and investors are waiting for the tide to turn in the second half. Even the miners see falling iron ore prices, markets for coal and copper remain saturated.

via Reuters

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