Anglo CEO Cynthia Carroll to step down

2012-10-26 07:01

London - Anglo American CEO Cynthia Carroll stepped down today, after more than five years at the helm but also after months of pressure from some shareholders over the share performance and the miner’s continued dependence on troubled South Africa.

A geologist by training, Carroll became the first non-South African, the first woman and the first outsider to take the top job at Anglo when she became CEO in 2007.

She said in a statement she felt the time was right to hand over to a successor as she entered her seventh year at the helm.
Her departure was not unexpected.

Recent labour woes - compounded by nagging concerns over its Minas Rio iron ore project in Brazil and operational trouble in Chilean copper - have revived long-standing worries among some investors over Anglo’s exposure to Southern Africa, the success of its acquisitions and, ultimately, a share price that has lagged peers.

Despite billions in cost cuts and efforts to streamline what was still in 2007 a sprawling consortium, analysts at Macquarie said this week that on a US dollar market capitalisation basis, Anglo has lost one-third of its value since Carroll became CEO. It is now worth some $25 billion less.
 
The rest of the peer group are worth at least the same as they were at the start of 2007, when she took over.

Violent strikes and labour troubles across the South African mining sector spread to Anglo Platinum, the world’s top producer of the precious metal, last month, just before the end of the current reporting period.

Weeks later, they hit Anglo’s Kumba Iron Ore unit, which alone accounted for almost half the group’s operating profit in the first half.

Kumba’s Sishen mine has since begun to ramp up operations, but Amplats workers have not yet returned to Amplats’ Rustenburg, Union and Amandelbult mining operations, which include some of Amplats’ most labour intensive shafts, and those that have suffered deepest compression in margins since 2008.

Join the conversation!

24.com encourages commentary submitted via MyNews24. Contributions of 200 words or more will be considered for publication.

We reserve editorial discretion to decide what will be published.
Read our comments policy for guidelines on contributions.
NEXT ON NEWS24X

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
0 comments
Comments have been closed for this article.

Inside News24

 
/News

Book flights

Compare, Book, Fly

Traffic Alerts
There are new stories on the homepage. Click here to see them.
 
English
Afrikaans
isiZulu

Hello 

Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.


Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire 24.com network.

Settings

Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.




Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.