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

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.


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,...

BT is now on Telegram!

For daily updates on weekdays and specially selected content for the weekend. Subscribe to