Fin24

Anglo CEO Cynthia Carroll to step down

2012-10-26 08:20

London - Anglo American [JSE:AGL] CEO Cynthia Carroll stepped down on Friday, after more than five years at the helm but also after months of pressure from some shareholders over the share performance and the miner’s continued dependence on troubled South Africa.

A geologist by training, Carroll became the first non-South African, the first woman and the first outsider to take the top job at Anglo when she became CEO in 2007.

She said in a statement she felt the time was right to hand over to a successor as she entered her seventh year at the helm.

Her departure was not unexpected.

Recent labour woes - compounded by nagging concerns over its Minas Rio iron ore project in Brazil and operational trouble in Chilean copper - have revived long-standing worries among some investors over Anglo’s exposure to Southern Africa, the success of its acquisitions and, ultimately, a share price that has lagged peers.

Despite billions in cost cuts and efforts to streamline what was still in 2007 a sprawling consortium, analysts at Macquarie said this week that on a US dollar market capitalisation basis, Anglo has lost one-third of its value since Carroll became CEO. It is now worth some $25bn less.

The rest of the peer group are worth at least the same as they were at the start of 2007, when she took over.

Violent strikes and labour troubles across the South African mining sector spread to Anglo Platinum [JSE:AMS], the world’s top producer of the precious metal, last month, just before the end of the current reporting period.

Weeks later, they hit Anglo’s Kumba Iron Ore [JSE:KIO] unit, which alone accounted for almost half the group’s operating profit in the first half.

Kumba’s Sishen mine has since begun to ramp up operations, but Amplats workers have not yet returned to Amplats’ Rustenburg, Union and Amandelbult mining operations, which include some of Amplats’ most labour intensive shafts, and those that have suffered deepest compression in margins since 2008.

Comments
  • andre.barendse.7 - 2012-10-26 09:04

    Hmmm... will the next CEO be black?

      wwrer.ww - 2012-10-27 01:49

      Just as long as she is disabled and has some struggle credentials.

  • corne.dunn - 2012-10-26 09:15

    http://www.fin24.com/Companies/Mining/I-believe-in-SA-says-Anglo-CEO-20121022 - This article was posted less than a week ago. Irony, much?

  • ftakalani - 2012-10-26 09:30

    I thnk she did th ryt thng, who could stand tht pressure?

  • FUNKMASTERFLEX.AKA.BAIN - 2012-10-26 09:33

    Not the best ceo the world has ever seen.She was unpopular(fellow top directors left other business units cause of her) and her performance shows this

  • anton.plessis - 2012-10-26 09:42

    Good for her - move on to something less volatile, less politicised.

  • janis.moolman - 2012-10-26 09:47

    It is not about sa it is about Brazilia. That is why they ask het to leave.

  • SarelJBotha - 2012-10-26 10:06

    So she believes in RSA's future, but just do not want to be part of Anglo while this futures unfolds. I cannot blame her.

  • janis.moolman - 2012-10-26 10:24

    Luckily it is an un company and the Ceo will be appointed by the un board.

      deon.louw.7505 - 2012-10-26 11:56

      She seems to be the his boss as it is a London based company?

  • janis.moolman - 2012-10-26 10:54

    Khanyisile Kweyama is the Ceo of Anglo south africa

  • mick.puzone - 2012-10-26 14:51

    south african have made anglo a great company in the past. from the driller to the CEO, they where all persons will mining in their blood. why appoint a candian, its a pity that the opperheimers have virtually disapperaed from South africa, it would have been a good time for a next generation opperheimer to take charge

  • adolph.vanhuyssteen - 2012-10-27 09:19

    It truely is a pity that this had to happen. During Cynthia's tenure she started focussing on all the pressing issues in the south african platinum industry. Yes, I agree that she may have made a few wrong decisions in the base metals industry to date. I have had the opportunity to work with most of the large mining houses and I can therefore bear testimony that the work she did to raise the bar w.r.t social responsibility and health and safety performance is exemplary. Having spend time on the platinum operations, I witnessed the improvements coming to fruition. At times the operational management had a difficult time adjusting to her vision, but her continued focus kept them in line. Its sad to see her leave but I wish her success with the work to be done at De Beers.

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