In the midst of the worst commodity slump in a decade, one of the world's most prominent mining companies, Anglo American, has been dealt a massive blow. Following a 12 percent drop in shares on Tuesday, the company's PLC shares slumped for a second consecutive day on Wednesday, falling by as much as 14 percent, according to The Wall Street Journal.
The dismal performance of the company in the stock market is seen by many as a sign that the company's restructuring plans, which include capital spending cuts and efficiency improvements, were not enough to adequately impress investors.
The company, which is based in London and South Africa, also announced on Tuesday that it is set to suspend dividend payments for the rest of 2015 and 2016, reports CNN Money.
Analysts at JPMorgan state that the contingencies being employed by Anglo American are simply not sufficient to properly address the issues in which the company is currently embroiled.
"These measures by Anglo do not go far enough to challenge our fundamentally bearish view. Specifically, in the absence of higher commodity prices, a significant reduction in net debt will only be achieved by a more aggressive expansion of disposal candidates," the analysts said, according to The Financial Times.
As a result of the consecutive slumps in share value, Anglo American has now become the worst performing stock in the FTSE 100 for 2015, overtaking Glencore, a rival mining company which already suspended its dividend payments in September.
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