The resignation of Anglo American's (AAL) chief executive, Cynthia Carroll, certainly played well with the stock market. Shares in the South Africa-focused mining giant ticked up nearly 4 per cent after Ms Carroll said she was leaving. Despite this upwards blip, the group has entered a transitional phase at a time of heightened industrial and social unrest in South Africa. So, although Anglo's share price is 34 per cent off its 12-month high, there are factors that could push it much lower.
- Wildcat strikes
- Lost platinum production
- Problems at Minas Rio
- Debt rating downgraded
- Change in leadership
- First-class mines
Apart from its timing, news of Ms Carroll's resignation caught few industry analysts completely by surprise. The mining giant's share price fell during her nigh-on six-year tenure. So, after years of underperformance, a change of leadership was predictable, particularly considering the growing dissatisfaction of some of Anglo's major shareholders, such as BlackRock.