Anglo American is a case study of what happens to a company when there has been too much borrowing and poor capital allocation. The company has shrunk from 68 assets four years ago to 42. By the time the restructuring programme that was announced in December last year is completed, the one-time giant of the commodity world should be left with only 16 operations. However, since the programme began, there has been a marked shift in the state of the commodity world. Prices have either steadied or, in the case of iron ore, rallied significantly. Last December, Anglo was trading at R72.76 a share; over the course of this year it has more than trebled in value. Another of the world's blue-chip miners, larger rival BHP Billiton, has gained 48% and Glencore is up 148%. Gold miners have seen their fair share of fireworks this year on the back of a higher gold price and a weakening of the rand. But, while mining houses seem on the up, leading to questions about just how deep Anglo's restructu...
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