Anglo hits production targets, flags writedowns

London - Global mining company Anglo American [JSE:AGL] said that a sharp drop in commodity prices will likely result in impairment charges for its 2014 financial year, as it posted annual production ahead of its guidance for its key commodities.

The company, which has lagged rivals for much of the past decade, is undergoing a restructuring focused of improving mining operations and selling less profitable assets.

Its turnaround efforts however have so far clashed with a rout in prices of metals such as copper, coal and iron ore, which make up much of its earnings.

"Given the sharply lower commodity price environment, particularly for the bulk commodities, Anglo American expects to record certain non-cash impairment charges as special items for the 2014 financial year," the company said in a statement on Wednesday.