Anglo American says falling commodity prices will hurt targets

9th Dec 2014 17:25

Anglo American's chief executive on Wednesday warned that falling commodity prices will affect targets.Mark Cutifani warned that the return on capital employed now expected in 2016 is 12%, compared to its target of 15%.Based on last year's commodity prices, the miner remained on track to meet its targets, but the mining industry has been under pressure from oversupply of some key commodities such as iron ore."We have to acknowledge price headwinds," said Cutifani."All things being equal we are on track, but prices are what they are. If 2016 is the low point in the price cycle we will still be $4bn better off [in earnings] than we would have been."He added that there might be still some downside potential to forecast commodity prices and that it is the company's "job is to adapt".The group aims to further cut costs in South Africa, where the industry was hit by a five-month strike by platinum miners.