Mark Cutifani is avoiding the temptation to feel complacent. The head of Anglo American Plc has seen the miner’s share price almost triple this year, topping gains in the benchmark FTSE 100 Index. But that can’t erase the bad times Cutifani’s seen since becoming chief executive officer in 2013.
“We’re not convinced the worst is behind us,” he said in a Bloomberg Television interview with Manus Cranny and Caroline Hyde on Thursday. “There will be pressure on supply right across the commodity suite.”
After a torrid 2015, when Anglo’s stock sank 75 percent, it has rebounded this year as raw materials rallied and management set out plans to exit iron ore and coal, and focus on more profitable diamonds, platinum and copper.
Other miners have also recovered this year as commodities surged the most in the first half since the 2008 financial crisis. Producers also helped by cutting output, while China’s economy stabilized and policy makers backed growth.
The recovery has led some to say the worst is over. The World Bank said on Wednesday commodities will rebound next year after hitting the bottom of the cycle. Citigroup Inc. this month said it’s bullish commodities for 2017.
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