[miningmx.com] – ANGLO American’s ambition to achieve a 15% return on capital employed (ROCE) by its 2016 financial year was too ambitious, said Bloomberg News citing a report by Liberum Capital.
The UK broker said that in order to fully impact ROCE the group would have to complete disposals of platinum assets before the end of 2015 and at or above book value.
“Given the hurdles to asset sales in the platinum and building materials industries, a speedy disposal of Anglo’s underperforming assets should not be taken for granted,’ it said.
“We believe it is too ambitious. Our estimated 10.8% ROCE in 2016 will disappoint investors and with Anglo’s bleak earnings outlook, weak yield and significant project risk, we remain conviction sellers,’ it said.
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