Mining companies will take time to recover

By September 3, 2016Commodities

Market analyst at BP Bernstein, Makwe Masillela says: “We have seen with the likes of Glencore before, they are the ones who announced that they will be cutting dividends so that they can settle debt. Here Anglo American as well are stating the same thing that they will be suspending dividends. Yes, the likes of Anglo Platinum will still be okay, their debt is not that bad. At lease they are generating a bit of cash. But we know that they have sold some of their mines to the likes of Sibanye.So, yes going forward all of these companies can see that what used to be the good years is no longer there and it’s going to take them a long period to be able to generate the kind of cash that they use to generate in the previous years.”