Analysts at Berenberg Bank have reiterated their "sell" recommendation for Anglo American PLC (LSE:AAL), setting a price target of 2,100p citing worries about the change of pace at the miner rather than the changes themselves.
After rejecting a £39 billion bid approach from the BHP, Anglo outlined plans to kick-start its operational and financial performance.
Specifically, it is selling its Australian metallurgical coal assets, divesting or demerging De Beers and Anglo American Platinum and selling its nickel business. It is also looking to make $800 million in cost savings.
However, Berenberg's number crunchers expressed concerns about the company's ability to execute these plans within the expected timeframe.
The sale of the coal and nickel assets, valued at $2.7 billion and $342 million respectively, is expected to be delayed until the first half of 2025.
Additionally, market conditions and operational challenges, such as a fire at the Grosvenor coal mine, may impact the value of these assets and delay their sale.
Anglo American's financial performance has also been under pressure. The company’s exposure to commodity price volatility and operational disruptions further complicates its strategic plans.
In afternoon trading the stock was down 1% at 2,354.5p.