Anglo names new finance director

Johannesburg - Anglo American [JSE:AGL] named Fortescue Metals Group’s Stephen Pearce as finance director, after he led the drive to slash debt at the world’s fourth-largest iron ore producer.

Pearce, Fortescue’s chief financial officer since 2010 who was promoted to the board in June, will join Anglo in January and take up his new post on April 24, the producer said in a statement on Friday.

Anglo, seeking to reshape its business for an era of lower commodities prices and to cut net debt to less than $10bn, said in April its current finance director Rene Medori will retire in 2017 after holding the position for 12 years. Pearce is credited with driving Fortescue’s debt reduction programme, cutting the producer’s borrowings by $3.6bn since July 2015.

London-based Anglo’s need to cut its debt pile has parallels to Fortescue’s position about three years ago, Peter O’Connor, a Sydney-based analyst with Shaw and Partners, said by phone. Pearce is “a guy who can methodically and systemically work through an incredibly pressured process to reduce debt. He’s just done it,” he said.

Fortescue’s shares fell 3.9% on Friday in Sydney trading, trimming its advance this year to 165%.

Medori will continue to lead London-based Anglo’s asset divestment and restructuring processes until his retirement at the end of 2017, the company said. Pearce’s “strong relationships with the debt and equity capital markets have proven immensely valuable in his role at Fortescue, as has his work across complex cost and other efficiency performance programmes,” Anglo CEO Mark Cutifani said.

Perth-based Fortescue, founded by billionaire Andrew Forrest, earlier confirmed the executive will step down at the end of this year and said it will study internal and external candidates to replace Pearce. Former Rio Tinto Group executive Greg Lilleyman will be appointed as director operations in January, Fortescue said.