You are here

Don't be fooled by commodity rally: Many producers still face debt cliff

To end the glut firms should cut output, but many are so debt-ridden they must keep churning cash to stay afloat

BT_20160310_DNRALLY10_2158166.jpg
Freeport-McMoRan, the largest publicly traded copper producer, said it is looking to cut its US$20 billion debt to US$10 billion through multiple transactions.

Toronto

IF you think commodity producers are out of the woods as markets rally, here's a reality check: many are still grappling to contain debt.

Another year of belt-tightening hasn't kept pace with an earnings slump after prices collapsed. One gauge of leverage among mining,

sentifi.com

Market voices on:

grab

Receive $80 Grab vouchers valid for use on all Grab services except GrabHitch and GrabShuttle when you subscribe to BT All-Digital at only $0.99*/month.

Find out more at btsub.sg/promo

Powered by GET.comGetCom