London-listed mining companies have been hit by plummeting commodity prices, forcing them to slash jobs, costs, capital expenditure and dividends.
BHP Billiton shares are at their lowest since January 2005, while Rio Tinto stocks hit levels last seen in March 2009. Shares in Glencore and Anglo American plunged to repeated record lows.
Below is a summary of the steps miners have taken so far to improve balance sheets and what they have committed to do.
BHP has copper, iron, coal and energy assets.
Its shares are down 53 percent since January 2015
Market Cap: $50.38 billion
Net debt: $24.4 billion at end-June 2015
Dividend yield: 15 percent (according to Thomson Reuters data)
Spin-off of South32 , valued at $9 billion
Cut cash costs by $2.7 billion in FY15
Closed Gregory Crinum coal mine in Queensland and sold New Mexico coal mine to WCC
Cut 380 jobs at Olympic Dam copper and uranium mine in Australia, 76 jobs at Canadian potash operations and 100 jobs in Melbourne head office
Cut petroleum capex by $200 million
Reduced number of drilling rigs to five from 26 at U.S. onshore oil operations and deferred development
Wrote down the value of U.S. shale assets by $7.2 billion
Raised $6.5 billion in hybrid securities to help refinance debt
It has committed to:
– Review dividend progressive policy in February
– Cut capex to a forecast $8.5 billion in FY16, down from $11 billion in FY15
– Faces $5.31 billion civil lawsuit after deadly dam burst at Brazilian iron ore mine Samarco, jointly owned with Vale SA
Credit Ratings: A1 investment grade rating from Moody’s and Standard & Poors, with negative outlook.
Rio produces aluminum, copper, iron ore, coal, diamonds, uranium.
Shares down 47% since Jan 2015.
Market Cap: $43.47 billion
Net debt: $13.68 billion at end of June 2015
Dividend yield: 10%
Sold a 40 percent stake in its thermal coal mine to New Hope Corporation for $606 million and put all coal stakes in Australia up for sale
Cut capex to forecast of $5.5 billion in 2015 and operating costs by $600 million in H12015
Sold stakes in Zimbabwe diamond assets to Morowa Holdings
Cut corporate jobs and reduced product groups to four from six
Shed between 110 and 170 jobs at aluminium operations in Canada, cut around 50 jobs at M&A division
Froze 2016 salaries
Credit Rating: A3 investment-grade rating, with stable outlook at Moody’s and A- investment grade, with negative outlook at S&P and Fitch.
Glencore has oil, coal, agricultural and industrial metals assets and a trading division. The company listed in London and Hong Kong in 2011 and merged with Xstrata in 2013.
Its shares have fallen 75 percent since Jan 2015
Market Cap: $16.19 billion
Net debt: Peaked at $30 billion in 2015
Cut 2015 capex to $5.7 billion from $6 billion
Suspended dividend for 2015, saving $1.6 billion
Raised $2.5 billion in a share sale
Repaid three bonds totalling $1.95 billion, repurchased another $400 million of bonds
Agreed a streaming deal to sell silver output
Cut 500,000 tonnes of zinc production, one third of its annual output
Cut 300,000 tonnes of production at copper mine Collahuasi in Chile, jointly owned with Anglo American
Suspended 400,000 tonnes of copper production at Katanga Mining unit in DRC and Mopani Copper Mines in Zambia for 18 months.
It has committed to:
– Reduce debt by a third to $18-$19 billion by end-2016
– Suspend 2016 interim dividend, saving $800 million
– Raise $3-$4 billion from assets sales, including minority stake in agricultural business, Cobar copper mine in Australia and Lomas Bayas copper mine in Chile
– Cut 2016 spending to $3.8 billion from $5 billion
Credit rating: Two notches above junk (BBB) with negative outlook at Standard & Poor’s. One notch above junk, Baa3, with stable outlook at Moody’s.
The Johannesburg-based miner produces iron ore, manganese, copper, nickel, coal, platinum, diamonds, niobium and phosphates.
Stock has fallen 82 percent since Jan 2015.
Market Cap: $4.76 billion
Net debt: $13 billion at end of 2015
Suspended dividends until end-2016
Cut capex plans for 2016 to $3.2 billion from $3.6-$3.9 billion previously
Sold 50 percent stake in Lafarge Tarmac for $1.6 billion
Sold Mantos Blancos and Mantoverde copper mines in Chile for $300 million, Dartbrook Coal mine in Australia for $34 million and Callide coal mine in Australia
Amplats subsidiary sold Rustenburg platinum mine in South Africa to Sibanye Gold for $331 million
It has committed to:
– Consolidate business divisions into three from six, with focus on diamonds, platinum and copper
– Reduce workforce to 50,000 from 135,000
– Offload three-fifths of its 55 assets, to no more than 25. Sell niobium and phosphates division in Brazil in 2016 and coal assets in Australia and South Africa
– Aims to raise $4 billion from asset sales by end-2016, with $2 billion already secured
– Has said it will not tap shareholders for more money
– Expects to reduce debt to $10 billion in medium term
Credit Rating: One notch above junk, with negative outlook at Moody’s, Fitch Ratings and S&P.