6 \ News \ January 2013
www.GatewayToAfrica.com
NEWS AND ANALYSIS:
NEWS IN BRIEF Recent developments from Sub-Saharan Africa
Golden boy Cutifani snaps up Anglo’s top job
Lonmin nominated for worst company in the world Following a recent nomination for the Worst Company in the World of 2012, the new CEO of Lonmin will be under even greater pressure to turn around the company’s reputation and success in the wake of a disastrous year. In 2012, Lonmin was rocked by financial concerns as well as violent unrest among South African workers. CEO of four years, Ian Farmer, stepped aside in August due to poor health, during the deadly strikes at Marikana in which South African police shot dead more than 30 workers, injuring over 100 in total. Later in 2012 the company’s stock levels touched a 13-year low, and the absence of a permanent CEO proved a further worry for investors. Biggest shareholder Xstrata applied pressure on the company for drastic management changes and a firm business strategy with which to move forward.
All change at Amplats Anglo American Platinum Limited has released a trading statement forecasting a significant drop in headline earnings per share. The world’s largest platinum producer – known as Amplats – with 40 per cent of the global supply is in the process of finalising its results for the year 2012, during which time the company suffered a torrent of financial and political knocks. The review is expected to show a 20 per cent decline in profits, with up to 306,000 oz in lost production during the two-month strike last year and a write-down of some projects amounting to $764 million. In light of the announcement regarding the end of year review, shareholders’ interest plummeted by 1.82 per cent. In a second statement released by the company, Amplats proposed to postpone work on two South African mines and sell another, which will lead to a loss of 14,000 jobs.
Anglo American has confirmed AngloGold Ashanti’s chief executive Mark Cutifani as its new CEO, effective April 3. Cutifani was widely predicted to secure the role after Cynthia Carroll stepped aside in October 2012. Mr. Tito Mboweni, Chairman of the Board of Directors, thanked Cutifani for “five years of inspirational leadership, during which time he transformed the business.” Faced with a job hailed as one of the most difficult in the mining industry, Cutifani is optimistic. “I am delighted to have the opportunity to lead Anglo American at this important stage in its journey, to unlock the company’s very considerable value potential.” Commenting on Mr Cutifani’s appointment, Anglo American’s Chairman, Sir John Parker, said: “Mark is a highly respected leader in the global mining industry, with values strongly aligned to those of Anglo American. We look forward to welcoming him as our Chief Executive.” The formal search for his replacement has already begun and AngloGold has stated that both internal and external candidates will be considered.