Pre-market trading started yesterday (19-05-11), but full market trading to start next week, Tuesday as it now stands (could change). 530p the float price.

Chart to come when I get it, and any other updates/corrections that I happen to spot.

Up just over 2% on it's 1st day of trading.

http://moneyam.uk-wire.com/cgi-bin/articles/201105240808041581H.html

Apparently the Company are under investigation in Belgium and Namibia.

yes also other problems seem to be appearing - would expect this to be in a southerly direction in the not too distant - real winners of course the overnight billionaires

worth taking a closer look at some of their commodities (of which there are many!) - the larger slugs of investment

gl

Reuters 24th May - shares of commodities trader Glencore int. are set for a week start,when they begin trading in London and Hong Kong. Reflecting investor concerns that the $10 billion initial public offering was over priced. Fallen 3% from initial price of 530 pence, a soft opening.

Questor in the Telegraph says to buy Xstrata not Glencore

stock trading online

Telegraph: Questor link:

http://www.telegraph.co.uk/finance/markets/questor/8533799/Questor-share-tip-Avoid-buying-Glencore-there-are-better-mining-plays.html

Newly listed commodities trader Glencore has been barred from borrowing from the European Investment Bank (EIB) because of "serious concerns about how the company is run". The bank, the lending arm of the EU, yesterday said it had frozen all new loans to the Switzerland-based group which floated in London last month with a 36billion price tag that catapulted it straight into the FTSE 100.

SP. not unduly affected so far, down about 5p.

Xstrata confirms merger discussions with Glencore Intl

Xstrata confirms that it has received an approach from and is in discussions with Glencore International regarding an all share merger of equals which may or may not lead to an offer being made by Glencore for Xstrata.

There can be no certainty that any offer will be made.

At 8:10am:
(LON:GLEN) share price was +13.03p at 444.78p
(LON:XTA) Xstrata share price was +138p at 1257.5p

Story provided by StockMarketWire.com

..Biggest-Ever Mining Merger On The Cards

Sky News 2012 | Sky News – 1 hour 16 minutes ago

The chance of the biggest-ever deal in the mining sector has shot the two companies involved to the top of the FTSE 100 (Euronext: VFTSE.NX - news) risers.

The world's biggest mining and commodities trader Glencore already owns 34% of miner Xstrata (Dusseldorf: XTR.DU - news) , and has admitted it is in talks to acquire the remainder.

The company has until March 1 to confirm whether it will make a firm offer.

"We've always had the belief these two companies should be together," Glencore chief executive Ivan Glasenberg said at a financial conference in Moscow.

Xstrata gained 9.9% on the back of the talks on Thursday, while Glencore rose 6.9%.

However, Britain's main share index closed only fractionally up by 0.1% - the gains in the mining sector were offset by losses in other sectors.

Through the all-share 'merger of equals' that has been proposed and with the day's price rises, the combined group would be worth more than £50bn.

But analyst Tom Gidley-Kitchen from Charles Stanley & Co said Xstrata shareholders will expect to be compensated "for swapping a pure miner for a mining/trading combination".

"If they had wished to own the latter they would not have invested in Xstrata. Also, arguably, everyone knew that a bid would come eventually and few people would have bought Xstrata shares on the basis that they might be sold to Glencore at a nil premium," he added.

Both Glencore and Xstrata have headquarters in Switzerland, are listed on both the Swiss and London markets and have South African chief executives.

Six (SNP: ^SIXY - news) global investment banks, though none of them British, are said to have been consulted to advise on the deal which will command a total fee of up to $140m (£88.5m).

..

Glencore was the largest faller on the blue-chip index following reports about its planned £50bn merger with Xstrata . On Monday, The Daily Telegraph reported that the deal could face a probe from the European Commission, while others have suggested Xstrata's shareholders will demand a significant premium to approve the deal. Glencore dipped 21.8 to 460.75, while Xtsrata fell 21½ to £12.61½.

..Glencore and Xstrata unveil $90bn merger

By Martin Strydom | Telegraph – 28 minutes ago

......
Miner Xstrata and trading house Glencore have unveiled a $90bn (£56.9bn) merger to create the world's fourth largest natural resources company.

Glencore, which owns 34pc of Xstrata (Dusseldorf: XTR.DU - news) , has offered 2.8 shares for each Xstrata share.

The deal is a 15pc premium to Xstrata's share price of £11.19½ on February 1, and values the miner at £12.90 a share, or £39.1bn.

Glencore shareholders will own 55pc of the combined group, with Xstrata shareholders holding the rest of the new company which will be named Glencore Xstrata International.

Xstrata chief executve Mick Davis takes up the same role in the enlarged group and opposite number at Glencore, Ivan Glasenberg, will be deputy chief executive.

Mr Davis said in a statement : "Our industry landscape is evolving ever faster. Sources of supply are diverging from traditional mining regions to more complex and disparate locations, with a range of new industry participants seeking access to markets.

"At the same time, demand growth has shifted from Europe (Chicago Options: ^REURUSD - news) , Japan (EUREX: FMJP.EX - news) and the US, to emerging Asian economies. The commodities value chain is becoming longer and more complex, creating opportunities for a company that can pre-emptively participate at every stage. Glencore Xstrata would be well positioned to do just that, creating value from resource extraction to customer sales and services, at a time when demand for our combined products continues to grow."

The company will have combined reveneus of more that $200bn and it will be a global leader in export thermal coal, ferrochrome and integrated zinc production, the third largest producer of copper growing into the largest independent producer within four years, and fourth largest producer of nickel.

Operations and project will cover 33 countries, 101 mines and more than 50 metallurgical facilities and have around 130,000 employees.

The group believes increased scale will lessen risk, lower capital costs, and enable it to take part consolidation in the industry.

Mr Glasenberg, who holds a $9.6bn stake in Glencore, said: "We have a fantastic opportunity to create a new powerhouse in the global commodities industry ... This is a natural merger which will realise immediate and ongoing value ... but the opportunity is even greater than that."

Glencore Xstrata will be listed in London and Hong Kong and have its headquarters in Switzerland. It will continue to be incorporated in Jersey.

Some Xstrata shareholders have said the merger represented a better deal for Glencore, whose 12 top executives own 31pc of the company.

Besides shareholders, the two companies also have to persuade competition authorities especially in Europe to allow the deal to go ahead.

Xstrata chairman Sir John Bond will continue in that role in the enlarged company. The finance director's post will be taken up by Trevor Reid, the current Xstrata chief financial officer. Steven Kalmin, the Glencore CFO, will be his deputy.

On Monday Xstrata shares slipped 1.7pc, while Glencore lost 4.5pc. Over the past month Glencore shares jumped 24pc and Xstrata's surged more than 30pc on hopes of a merger.

The new mining-to-commodities giant

Liberum note on the merger:
"The much-anticipated ‘merger of equals’ between Glencore ans Xstrata has been announced this morning.
We think the key points are 1) the price has been confirmed at 2.8x Glencore shares per Xstrata share, equivalent to a 20% market cap premium 2) Key managerial positions will be held by Xstrata executives with Mick Davis CEO, Trevor Reid CFO and John Bond as Chairman and 3) Synergies have been flagged at $500m which are predominantly marketing, we think this is conservative.
With Xstrata getting the three top jobs and a small premium we fail to see how Xstrata shareholders have come out poorly here. They gain access to some very fast growing assets and a world class trading platform and the shareholder tensions that have dogged the company since the failed sale to Vale in 2008 have been killed once and for all. For Glencore, it looks to be an almost accretive deal and strategically completes their move from the private world. Using the flagged $500m in EBITDA synergies we estimate the deal will be 4% dilutive for Glencore shareholers on 2012 EPS, but 23% accretive for Xstrata shareholders. As such, we think only a marginal bump would be palatable to Glencore shareholders and therefore see Glencore as the lower risk entry point into the deal given the asymmetric downside under a deal-break scenario.
A done deal? On these terms and team composition we feel the deal will be passed by Xstrata shareholders.
Voting it down is simply too destructive – shareholders would get no synergies, no premium and be left with two big problems a) what to do with management (the logic of “back or sack” implies succession/leadership issues). b) how resolve a heightened problem with its biggest shareholder Glencore. With the leak marking up both shares to an extent the market has already ‘approved’ of this deal."

By Rachel Cooper | Telegraph – 8 minutes ago
Xstrata was amongst the sharpest fallers on a weaker benchmark index after its merger with Glencore received a mixed reaction.

With two of the top ten shareholders in Xstrata saying on Tuesday that they would vote against a takeover by commodities trader, Glencore , the miner slipped 2.8pc. Glencore, however, gained 0.5pc.

Standard Life Investments, the fourth largest investor in Xstrata, and Schrodershead of UK equities said the deal to buy the remaining 66pc of Xstrata for $41bn undervalued their shares.

I think this cannot go down much further. Recovery should come soon.

..Glencore bidding for grain handler Viterra - report

Reuters – 1 hour 0 minutes ago
....
Share0EmailPrint.....
REUTERS - Commodities and mining giant Glencore has made a 3.5 billion pound (US$5.5 billion) approach for Canada's biggest grain handler Viterra, Britain's Sunday Telegraph newspaper said on its website on Saturday.

The London-based paper did not cite sources, but said it understood that Glencore had made an approach to Viterra, which triggered a statement by Viterra on Friday that it had received expressions of interest from third parties.

Shares of Viterra spiked 24 percent in Toronto on Friday after a brief trading halt, during which the company disclosed interest from parties it did not name. Viterra's market cap soared to more than C$5 billion (US$5.05 billion) with the stock surge.

Viterra is one of three big grain handlers in Canada - along with privately held Richardson International Limited and Cargill - and the only one that is publicly traded. Interest in the company comes as the Canadian government moves to eliminate the Canadian Wheat Board's 69-year-old wheat and barley marketing monopoly in Western Canada on August 1, 2012.

That change will eventually add C$40 million to C$50 million to Viterra's annual earnings, the company has said, as it can buy wheat and barley directly from farmers for the first time.

Canada is the leading exporter of spring wheat, durum, canola and oats.

Viterra also owns grain handling assets in South Australia.

Viterra representatives did not immediately respond to requests for comment from Reuters.

A Glencore spokesman declined to comment, according to the Telegraph.

Glencore is also attempting a $36 billion merger with mining group Xstrata, and has expressed interest in buying U.S. energy and grains trader Gavilon Group, according to a source familiar with the matter.

(Reporting by Rod Nickel in Winnipeg; editing by Mohammad Zargham)

..

Humm 400p.

..Pressure lifts on Glencore as Xstrata shares tumble

By Emma Rowley | Telegraph – 6 minutes ago

......
The pressure on commodity giant Glencore to raise its offer for miner Xstrata (Dusseldorf: XTR.DU - news) is decreasing as Xstrata shares traded at their lowest level in relation to Glencore’s since the companies’ planned £50bn-plus merger was announced.

Swiss-based Glencore has offered 2.8 of its shares for each one held by Xstrata shareholders, many of whom have complained the deal undervalues their company.

But wider economic fears are now driving markets. Xstrata on Friday closed at 914.7p and Glencore at 345.35p, signalling each Xstrata share was changing hands for less than 2.65 of Glencore’s share price the lowest ratio since the deal was announced on February 7.

“Trading is being driven by wider macro [economic] concerns,” said one analyst who asked not to be named. “But if the ratio persists and macro worries stay, Xstrata shareholders may decide that offer looks better than at the time of the deal.”

Another analyst said the offer now looks “at the higher end” in comparison to the trading ratio: “Glencore don’t need to bump [their offer].”

Both FTSE 100 resource companies have been hit by the sell-off in the mining sector amid growing economic concerns stoked by the eurozone crisis.

But Glencore, which floated in London and Hong Kong in May last year, is thought to be somewhat protected by the small size of its free float, which makes it harder to short its stock. It is also supported by buying from index tracker funds which need to raise their stakes in the FTSE’s new arrival.

Xstrata meanwhile tends to underperform its sector during a downturn.

Documents detailing the deal are due to be sent to shareholders before the end of this month. Company watchers say Xstrata’s management could come in for criticism, as the papers are expected to reveal chief executive Mick Davis’s new pay package as head of the combined group.

..

.

Link not live mn.. it must be live -):

There you go then Glencore protests at nationalisation of Bolivia mine :-)

That's better.. I thank you -):

.

I blame Stan! :-)

Oh no not.. agaaaain -):

..Glencore and Xstrata merger close to collapse as Qataris oppose deal

By Alistair Osborne | Telegraph – 28 minutes ago


The $65bn (£41.6bn) mega-merger between commodities giant Glencore and miner Xstrata (Dusseldorf: XTR.DU - news) was close to collapse last night after Qatar’s sovereign wealth fund said it would oppose the deal.

In a shock announcement, Qatar Holdings, Xstrata’s second biggest shareholder with almost 11pc, said that while it saw “merit in a combination of the two companies, it is seeking improved merger terms”.

Qatar was widely thought to be ready to back a deal which has already infuriated some shareholders. But its opposition is expected to sound the death-knell for the merger as it currently stands.

Roughly a quarter of Xstrata shareholders are now ranged against the deal, which requires 75pc approval. As Glencore cannot vote its 34pc stake in Xstrata, meaning a no-vote from 16.75pc of investors is enough to sink it.

Ivan Glasenberg, Glencore's chief executive, had offered 2.8 of the company’s shares for each one of Xstrata’s and had calculated he could ride out shareholder opposition from vocal opponents of the deal, including Schroders (Berlin: PYX.BE - news) and Standard Life (Other OTC: SLFPF.PK - news) .

However, the Qataris said last night that they believed “an exchange ratio of 3.25 new Glencore shares for every one existing Xstrata share would provide a more appropriate distribution of benefits of the merger whilst properly recognising the intrinsic stand-alone value of Xstrata”.

Opposition from the Qataris gives Mr Glasenberg little choice but to dig deeper and re-cut the terms of the deal or walk away.

Many Xstrata investors are already incensed that, as part of the deal, the company was trying to railroad through a “retention package” totalling £173m for the miner’s chief executive Mick Davis and senior managers to ensure they remained with the merged group. No performance criteria were attached.

Mr Davis was in line for £29m over three years merely for remaining with the merged company despite the fact that he was one of the main architects of the now crumbling deal.

..

Merger Update

In the light of the recent press speculation, Glencore confirms that it has received a proposal from the Board of Xstrata in relation to certain amendments to the management incentive arrangements that were proposed in the Scheme documents. We are considering that proposal and will make a further announcement when appropriate.

Glencore expected to sweeten terms to win Xstrata

(Reuters) - Commodities trader Glencore, scrambling to save its $30 billion (19.2 billion pounds) offer for miner Xstrata, is expected to sweeten its bid in order to seal the deal, after key shareholder Qatar said it could oppose the takeover on current terms.

Qatar, which remained silent on its intentions for months as it built the second-largest stake in Xstrata, said in a surprise statement on Tuesday that it supported the principle of the deal but demanded an improvement in terms from 2.8 new Glencore shares for every Xstrata share to 3.25.

..Glencore offer for Xstrata 'must be raised’

By Emma Rowley | Telegraph – 11 hours ago
A key shareholder in Xstrata (Dusseldorf: XTR.DU - news) will demand that commodity trader Glencore raises its offer for the FTSE 100 (Euronext: VFTSE.NX - news) miner despite the company reporting its interim profits have halved this week.

The City expects Xstrata to report a slump in earnings over the first six months of the year on Tuesday, as commodity prices have tumbled in the weakening global economic environment.

Xstrata will report that profits for the half dropped 50pc to $1.4bn (£900m), according to the City’s consensus estimates.

In contrast Glencore, whose trading activities mean it can profit from commodity price swings, is expected to report later in the month that its own earnings suffered a less steep fall of 37pc, to $1.5bn, according to analysts at Liberum Capital.

The results, according to Liberum, “will leave many concluding Glencore will not increase its offer to Qatar Holding’s desired 3.25”.

Nonetheless Qatar Holding, Xstrata’s second-biggest shareholder after Glencore, will remain firm in its insistence that Glencore must raise its offer from the 2.8 shares on the table for each Xstrata share, handing the miner’s investors more of the combined company.

The Qataris are understood to see the ball as firmly in Glencore’s court. Amid market suspicions that talks have ground to a halt, their position is that if there is a conversation, Glencore must initiate it and that it will have to be around improving the ratio.

Last week Qatar Holding continued increasing its stake in Xstrata, which on Wednesday edged further above 11pc.

Analysts said that this sent Glencore a warning that they were happy to remain an investor in the miner as a stand-alone company and can keep increasing their holding. “If Qatar owns 20pc then Glencore’s 34pc is not as important as it used to be,” said a fellow Xstrata shareholder.

If the merger falls apart, the investor suggested, “Glencore comes back with another deal which is maybe even worse but the Qataris won’t let them do this, seems to be the pretty clear message.”

However, Glencore maintains that its current offer represents a more-than-adequate premium for Xstrata, particularly given the latest earnings estimates.

With both companies’ shareholders due to vote on the deal on September 7, the expectation is now that Glencore will wait before its own results are out on August 21 before raising or tweaking its offer.

But that is not seen as a certainty by those watching the deal.

Analysts at Liberum now assign just over a one-in-two probability that the deal completes with Glencore offering 2.8 or 3 shares.

They rule out the chance of Glencore going all the way to the 3.25 level at which it can rely on the Qataris’ support

Interim Results

Glencore halts Hong Kong trading ahead of announcement

HONG KONG | Tue Sep 25, 2012 3:30am BST

(Reuters) - Commodities trader Glencore International (0805.HK) (GLEN.L) halted trading in its Hong Kong shares on Tuesday ahead of the release of a price sensitive information, the company said in a stock exchange filing.

The move follows last week's ruling by Britain's takeover regulator, which gave mining group Xstrata Plc (XTA.L) a one week extension to decide whether to accept a $36 billion (22.17 billion pounds) revised offer from Glencore.

The extension - granted at the request of both firms - surprised the market, which had been expecting Xstrata to announce its decision on Monday at the latest.

RECOMMENDED ALL-SHARE MERGER OF EQUALS

Glen is in its best ever shape with or without XTA.

I think many short positions are being squeezed. I expect it to move above 400p this side of the year.

IMS & Third Quarter 2012 Production Report

KEY HIGHLIGHTS

• Overall performance in Q3 2012 was good, despite generally weaker commodity prices.
• Marketing has, once more, demonstrated the robustness of the business model, with low operational gearing and much less direct correlation with commodity prices than industrial activities.
• Industrial activities performance reflected lower prices, but nevertheless delivered a sequential and year-on-year overall volume improvement as we continued to deliver on and benefit from our growth pipeline.
• Debt lower and rolling 12 month credit metrics improved. Our balance sheet retains a level of flexibility which is unique amongst a large part of our peer group.
• Outlook: we are not assuming any short term material improvement in global macro conditions. We are confident that in this environment our business model places us in a strongly competitive position, underpinned by our strong relationships in marketing and our highly capital-efficient low-cost brownfield expansion projects in industrial activities.

Good progress with merger.
They can now start releasing news.

April 16 (Bloomberg) -- Glencore International Plc, the world’s largest publicly traded commodities supplier, cleared the final regulatory hurdle in its $30 billion takeover of Xstrata Plc after gaining approval from Chinese authorities, according to three people with knowledge of the matter.

China’s Ministry of Commerce agreed to the takeover and an announcement is expected today or tomorrow, the people said, asking not to be identified as the decision isn’t yet public. The deal won agreement from South Africa’s antitrust regulator in January and the European Union in November. A spokesman for Baar, Switzerland-based Glencore declined to comment.

Some bed time reading for you

http://www.guardian.co.uk/business/2013/jun/26/marc-rich-commodities-trader-fugitive-dies

Glencore Xstrata copper output up

StockMarketWire.com

Glencore Xstrata's total own sourced copper production rose to 673,400 tonnes in the six months to the end of June - up 20% on last year.

African copper own sourced production up 42% over the comparable period to 171,500 tonnes, with strong sequential semi-annual growth at Katanga and Mutanda of 21% and 26% respectively.

Other key highlights inlcude:

- Production ramp up at Antapaccay and Mount Margaret (Ernest Henry) successfully continued, following respective commissioning in H2 2012

- Zinc production only modestly down (3%) as healthy growth from Australia, up 7% to 298,400 tonnes and the recently acquired Rosh Pinah operation, largely offset declines from Brunswick and Perseverance as they reached the end of their mine lives

- Own sourced gold production up 14% reflecting continued ramp up at Vasilkovskoye (Kazzinc)

- Koniambo generated first commercial grade ferronickel during April 2013. Line 1 power station now complete and production expected to ramp up towards the end of the year, following certification testing

- Prodeco coal production up 22% to 9.6 million tonnes, reflecting successful delivery of the current expansion plan and recovery from a H2 2012 strike (sequential semi-annual growth was 39%). The new direct loading port, completed on time and budget, was commissioned in April 2013, achieving an average loading rate of 1.6 million tonnes per month

The Glencore Xstrata merger completed on 2 May and production information has been presented on a combined basis.



Story provided by StockMarketWire.com

Recommended for share growth

As Glencore Xstrata reports Q2 results, Helal Miah, investment research analyst at The Share Centre, explains what they mean for investors.

"This morning, Glencore Xstrata released its half year production report (on a combined basis) that showed copper production of 673,400 tonnes, up 20% from the previous year boosted by production increases at its African mines. Investors will also be pleased to see gold production up 14% and coal production in Columbia up 22% after a successful expansion plan, however Zinc production was down by 3%.

"Although the mining sector has had a poor time recently we recommend Glencore Xstrata as a ‘buy' for investors. The company has a unique business model; a fully integrated commodities company with operations involved in extraction, processing, storage, freight and logistics to marketing and sales. The merged business should now allow for scale of production to extract metals, energy and soft commodities in five continents.

"As the global economy shows signs of improvement and the positive impact this may have on commodity prices, we believe an investment into Glencore Xstrata now poses less risk with a good potential for capital growth."

JP Morgan Cazenove "JPMorgan Cazenove has named diversified miner Glencore Xstrata its top pick amongst copper producers, while downgrading its rating for Antofagasta.Glencore Xstrata, which derives 35-40% of its EBITDA/NPV from copper, "stands out in our view", JPMorgan said, reiterating its 'overweight' rating and 410p target price. As for Antofagasta, the broker said that the stock is "up to speed with events" as it cut its rating from 'overweight' to 'neutral' and trimmed its target price from 1,040p to 1,005p."nk

Rns... By Chuin-Wei Yap BEIJING--China's largest copper producer by output, Jiangxi Copper Co. (0358.HK), is planning to bid for the Peruvian copper mine owned by commodities giant Glencore Xstrata PLC (GLEN.LN), the company's board secretary Pan Qifang told the Wall Street Journal Friday. Glencore had agreed to sell the mine, called Las Bambas, as a condition of getting approval from China's Ministry of Commerce for its merger in April with Xstrata. "We are currently considering plans to make the purchase, but haven't talked about a specific price," Mr. Pan said, without elaborating. Analysts estimate Las Bambas to be worth about $5 billion. The Wall Street Journal reported last week that China's Chinalco Mining Corp. International (3668.HK) was close to appointing investment banks Goldman Sachs Group Inc. and Morgan Stanley to advise it on buying the Peruvian property, according to people with knowledge of the matter. Mr. Pan didn't say if Hong Kong- and Shanghai-listed Jiangxi Copper would partner Chinalco in its bid. Chinalco Mining is the Hong Kong-listed copper unit of Aluminum Corp. of China, China's largest aluminum and alumina producer by output. Write to Chuin-Wei Yap at chuin-wei.yap@wsj.com Subscribe to WSJ: [link] (END) Dow Jones Newswires August 23, 2013 04:32 ET (08:32 GMT)

This adds to sets of asset sales by Glencore by year end, over $10bln.

Glencore-Xstrata-targets-brazilian-iron-ore-group

Cazenove note:
GLEN has announced interim Chairman Tony Hayward has been appointed to the role on a permanent basis, having been a leading candidate since the search process began in May’13. We expect a mixed shareholder reaction; Dr Hayward's leadership roles at BP and Genel provide the Board with highly relevant expertise at a time GLEN is increasing its upstream E&P exposure. However the nature of his exit as CEO at BP means he may not be viewed universally positively by the US market. In addition, Dr Hayward may need to earn trust that he has the force of personality to maintain the Board's independence alongside GLEN’s CEO and largest individual shareholder (8.3%) Ivan Glasenberg. We view this is a positive appointment, with the merits to be proved over time.
Dr Hayward brings extensive & relevant industry leadership: Tony Hayward is CEO of Genel Energy, a high growth, emerging market E&P company with assets in Kurdistan and he will retain this role. Previously he was CEO of BP from 2007 to 2010, having joined BP in 1982, but departed following the Macondo oil spill. Dr Hayward has served on GLEN’s board since Apr’11 and was senior NED until he was appointed interim Chairman in May’13. In our view, most UK and European institutional investors will be well disposed to his appointment.
GLEN has highest exposure to bullish Nickel fundamentals: We cite tightening nickel markets following Indonesia’s ore export ban in Jan’14 could be a key foundation for GLEN share price support. Overnight nickel prices have continued to move higher and are approaching $19,000/t. GLEN has the highest earnings sensitivity to nickel of the diversifieds; we calculate a 10% move in the nickel price impacts 2014/15 EPS by 3.4/4.6%.
Valuation: GLEN trades on spot PERs of 16.0/14.2x for FY'14/15E and a base case P/NPV of 0.87x. We continue to believe GLEN’s differentiated commodity mix, marketing business and capital allocation strategy justify a premium rating. However, with a lower likelihood of immediate capital returns than peers, we retain our Neutral recommendation."

When is the record date for 11cent cash distribution?

Half-year production report

Aug 14:
Deutsche: Buy -TP 400p
Barclays: Overweight
Credit Suisse: Neutral - TP 380p

Aug 13:
Investec; Hold - TP: 360p
Liberum: Hold - TP: 300p

Possible cash return
Now repeated in FT.

Results Wed 20 August

Aug 18:: Nomura: Neutral; Deutsche: Buy - TP retained: 400p.

Half-year results

20 Aug: Liberum retains 300p TP.

Aug 21: Deutsche: Buy - TP: 400p; Credit Suisse: Neutral - TP: 380p

H1 xd 3 Sept - payday 19 Sept - 6cents

Aug 31: Jefferies: Buy - TP: 430p

Sept 3:
Jefferies: Buy - TP: 430p
Investec: Add - TP: 380p
Deutsche: Buy - TP: 400p

Lonmin stake to be sold

CEO disnisses bid talk for Anglo American.

Sept 8: Exane BNP: Outperform - TP: 460p

SP falls on Glencore/London Mining dispute

Sept 23: Liberum: Hold - TP: 300p

Sept 30:

Credit Suisse: Neutral - TP: 380p
Deutsche Bank : Buy - TP: 414p
Goldman Sachs: Neutral - TP: 325p
Barclays: Overweight - TP: 420p

Glencore suspends Zambia copper projects

Glencore merger rejected by Rio

Oct 7:
JP Morgan: Neutral - TP: 370p
Credit Suisse: Neutral - TP: 380p
Exane BNP... Outperform - TP: 460p
Deutsche Bank: Buy - TP: N/A
Jefferies: Buy - TP: 430p
Citigroup: Buy - TP: 390p

Nomura note:
"After several years of weakening fundamentals for seaborne thermal coal markets, we believe markets are entering a new phase of modestly rebalancing. Major mine expansions in Australia are set to conclude over the next year and new impediments on Indonesian exports could tighten the supply side. On the demand side, we expect Indian economic reforms to push the country to increase thermal coal imports nearly 60% by CY18, leapfrogging China as the largest seaborne importer. However, with Chinese government initiatives to cut domestic mined output unlikely to be successful in the long run, and with thermal coal power generation additions set to diminish, we do not expect the country’s thermal coal deficit to significantly widen.
Marginal cost support falling; lowering near- and medium-term Newcastle thermal coal price forecasts, long-run forecast cut to USD 80/t. Nevertheless, we doubt that miners will be able to retake meaningful pricing power in any market rebalancing. China’s marginal dependence on imports and practical difficulty in Indian utilities’ to fully pass through higher imported coal costs in the form of higher power tariffs will likely keep prices low or lead to significant demand destruction for imported thermal coal, in our view.
Additionally, the rapid declines in many coal producing countries’ currencies continues to depress marginal cost support for the industry. We estimate that the 90th percentile of the seaborne cost curve has fallen by ~12% to cUSD 80/tonne since 2012. Therefore, we downgrade our Newcastle price forecasts over the next three years by ~17% (~13% below consensus) and our long-run price forecast to USD 80/tonne from USD 90/tonne previously.
RUB weakness compressing margins for Australian producers Furthermore, the particular weakness of the Russian rouble further threatens marginal cost support, as Siberian exporters represent the marginal producers in the seaborne market. This stands an acute risk for the next major country down on the curve, Australia, as at spot FX rates we estimate there is only a USD ~3/tonne difference between the two countries’ average cost positions. Thus, continued RUB weakness will likely threaten further margin compression for Australian thermal coal producers.
Glencore most exposed; downgrade to Reduce, TP 300p Glencore (GLEN) stands out as the most exposed to thermal coal among the global diversified miners, with a 10% change in thermal coal prices affecting CY15 EPS by 13%, on our estimates. Additionally, we expect the potential return for a bid for RIO will likely remain an overhang in the near term and could diminish the market’s hopes for cash returns. We have cut our GLEN CY15-16 EPS forecasts by ~21% and now sit ~19% below consensus. Therefore, we downgrade GLEN to Reduce from Neutral and cut our TP to 300p from 330p. We remain cautious on the European mining space."

Dec 11:

Credit Suisse: Neutral - TP: 380p
Canaccord: Buy - TP: 390p
Citigroup: Buy - TP: 390p
JP Morgan: Neutral - TP: 350p
Jefferies: Buy - TP: 375p
Deutsche Bank: Buy - TP: 399p

Feb 23; UBS: Buy - TP: 350p (Upgrade)

got out too quick :(

I think it is good time to get back in, IMO.
Anyone else?

Ahoy,

I thought that too long ago.

But still hope live in hope.

July 10: HSBC: Buy - TP down from 365p to 360p

Glencore glued to record low

Glencore' unveils plans to slash debt

StockMarketWire.com

Glencore has announced a fully committed proposed equity capital raising of up to US$2.5bn alongside additional capital preservation / debt reduction measures.

Taken together, they have an aggregate value of up to US$10.2bn, and certain other portfolio optimisation and cost reduction actions, with the objective of reducing net debt to the low US$20s billion by the end of 2016.

Highlights:

· A proposed equity issuance of up to US$2.5 billion to reduce indebtedness and increase financial strength;

- 78 per cent. of the proposed equity issuance underwritten by Citi and Morgan Stanley; and

- commitments from Glencore senior management (including CEO, CFO and several Board members) to take up the remaining 22 per cent. of the proposed equity issuance.

· Additional measures with a value of up to US$7.7 billion to be implemented between now and the end of 2016, including:

- approximately US$1.6 billion to be saved from the suspension of the 2015 final dividend, intended to do so in the current commodity environment;

- approximately US$800 million to be saved from the suspension of the 2016 interim dividend, intended to do so in the current commodity environment;

- approximately US$1.5 billion to be generated from further reduction in working capital;

- approximately US$2.0 billion to be raised from the sale of assets, including, but not limited to, proposed precious metals streaming transaction(s) and the minority participation of 3rd party strategic investors in certain of Glencore's agriculture assets, including infrastructure;

- US$500 million to US$800 million to be generated from a reduction in long-term loans and advances made by Glencore (c.US$4 billion at 30 June 2015); and

- US$500 million to $1.0 billion to be saved from an additional reduction in industrial capital expenditure to the end of 2016.

· Ongoing focus on portfolio optimisation and reduction of operating expenditures:

- operations at Katanga and Mopani are under review and in the process of suspending certain African production until the completion of the remaining cost-transforming projects which are on schedule to be completed by the first half of 2017. An 18 month suspension will remove approximately 400,000 tonnes of copper cathode from the market.

Assuming that the weak copper price is due to supply being stronger than demand, removing two mines' production from the market should benefit the remaining miners. KAZ and VED.....amongst others.

ANTO is surely a better copper stock if you insist on having one

I do!........though definitely not GLEN.

A bit here.

"This may not be the low, but it cannot be too far away. The 75% decline since IPO is also very close to the Fibonacci 78% level, which represents solid support."

Your right HARRY ,removing 400 000 tons of copper from the market could be good.
At present i have only bought and sold KAZ a few times .

Credit Suisse Outperform 131.40 235.00 235.00 Reiterates

Exane BNP Paribas Outperform 131.40 250.00 250.00 Reiterates

Jefferies International Hold 131.40 170.00 170.00 Reiterates

Deutsche Bank Hold 131.40 265.00 265.00 Retains

Citigroup Buy 131.40 210.00 190.00 Reiterates

Copper moved back up above $235 from 227 last week rising smoothly.

Glencore still eyeing options to raise $2.5bn in new equity

I wonder who is holding much of the debt. Trip to the barbers coming for them I suspect for a salvage.

Deals | Wed Sep 23, 2015 6:15pm BST
Related: DEALS
Glencore slump spoils commodity trader appetite for IPOs
LONDON | BY SARAH MCFARLANE AND DMITRY ZHDANNIKOV



Unprecedented shareholder pressure over the past six months at listed commodities firms Noble and Glencore have taught their private rivals an unforgettable lesson - think twice before going public or amassing large physical assets.
Noble's stock is trading near its lowest since the 2008 global financial crisis and Glencore's touched an all-time low on Tuesday due to plunging commodities prices and earnings.
"In the last two years you were possibly better off being private and not being listed, with the short sellers being so active in commodity companies," said Karel Valken, global head of trade and commodity finance at Dutch bank Rabobank.
After the record $10 billion Glencore share offering in 2011, which turned its managers into billionaire shareholders, commodity traders had come under an unprecedented spotlight.
Even though most unlisted merchants kept insisting they saw the private model as the most appropriate for now, many market watchers said it was only a matter of time before the likes of Louis Dreyfus followed suit to raise money for expansion via listings.
Those views first began to change after Olam International hit the headlines in late 2012 when its accounting practices were under attack from short seller Muddy Waters.
Then in February this year Noble came under fire when blogger Iceberg Research alleged that the company was inflating its assets to the tune of billions of dollars by not fairly representing the value of its commodity contracts - claims that a private firm would never have to deal with.
Noble rejected the allegations and a report by board-appointed auditor PricewaterhouseCoopers (PwC) found no wrongdoing in the company's accounting practices.
In the case of Glencore, the recent slide in its share price was triggered by a slump in earnings, which was compounded by a downward revision in its outlook to negative by ratings agency Standard & Poor's, along with an increasingly shaky economic outlook for top commodities consumer China.

"DOOMSDAY SCENARIOS"
This month, the mighty chief of Glencore, Ivan Glasenberg, had to bow to shareholder pressure and agree to cut debt as worries mounted over the firm's ability to protect its rating amid tanking commodity prices.
Glencore's stock has lost 80 percent of its value since its IPO. In August Glasenberg blamed short sellers and hedge funds for the rout, saying they did not understand his business and were painting "doomsday scenarios" for commodities.
Less than a month later shareholders forced him to pledge to cut debts, selling assets and issuing $2.5 billion in new shares to which the management including Glasenberg had to commit $550 million.
Glencore's new share issue was successfully completed last week, with many old and some new shareholders, dominated by long-only investors, participating. The move was seen as a vote of confidence in the turnaround plan but the stock kept falling this week together with commodity prices.
For unlisted private traders lower commodity prices are just background noise because their bankers know their model is based on profiting from price volatility and not from high or low prices.
"Our view has not changed - a private company status and ownership by employees is the right model because it embodies a clear alignment between the interest of owners and people who are driving the business," a spokesman for Trafigura said.
Of all the Glencore and Noble rivals, only Louis Dreyfus has openly said it could list one day.
Louis Dreyfus Commodities has issued bonds since 2012 in order to diversify its sources of funding and has adopted similar governance principles as those of a public company, but has no IPO plans at this time.
The company declined to comment on Glencore's situation.

GROWING WITHOUT LISTING
Oil traders Vitol, Mercuria, Gunvor and Trafigura said they would remain private, although Trafigura had in the past envisaged a listing for its midstream division Puma.
Sources at the four firms said their views have only been strengthened by the developments at Noble and Glencore.
Glencore argues that sacrificing its private status has allowed it to outgrow rivals and test a new model where trading complements extracting and refining commodities.
Its rivals retort that they have no shortage of funding when they want to expand despite their private status. Dozens of banks have a combined $100 billion worth of credit lines opened on Vitol, Trafigura, Mercuria and Gunvor.
In terms of asset ownership, traders indeed look strikingly different from the 1970s when the late trader Marc Rich, seen as the founder of contemporary trading, established the firm which later became Glencore.
Over the past decades, trading houses have amassed huge wealth and many used it to buy physical assets ranging from ports to refineries and oil fields.
Glencore used its IPO to go even deeper and heavier into copper and coal asset ownership, a trend which - according to Robert Piller, commodities lecturer at the Geneva Business School – it took to the "extreme" when it bought miner Xstrata for $29 billion in 2012.
"The trading companies, even though they are adding assets, have maybe 10-15 percent of their balance sheet in fixed assets, so they are still a long way from being considered asset heavy.
I don't expect them going anywhere near the levels of asset investment as Glencore," said Piller who is also director of Aupres Consult.
Over the past three years Vitol and Gunvor bought refineries in Europe, Trafigura invested in infrastructure in the United States and Brazil and Mercuria bought business from bank J.P. Morgan - and all the deals were financed by bank loans.
But the four firms say going deeply into exploration would be a step too far as it would effectively mean taking a long position in a certain commodity - a strategy which backfired for Glencore this year as copper and coal prices tanked.
"I think if there is a lesson for the other trading companies it's that their doubts about listing have been confirmed," said Piller.
"I believe the biggest doubts about listing would be pushing yourself into the spotlight," he said, adding that traders had alternatives for raising long-term capital such as via sovereign wealth funds or via bond placing.
(Editing by Veronica Brown and Gareth Jones)

This will end up D4E in the next 12 months. Looks awful.

This is akin to the dotcom crash where only the biggest and best survived. This one is the Marconi I suspect.

http://www.telegraph.co.uk/news/uknews/1339789/Marconi-from-boom-to-bust-in-a-year.html

KAZ getting trounced as well .

New all-time low for Glencore drags UK stocks lower

Comment from Investec today:
"The challenging environment for mining companies leads us to the question of how much value will be left for equity holders if commodity prices do not improve. We have adopted a P/E-based approach to evaluate how the equity value of the major diversified companies might vary over time in proportion to debt and have identified the companies where equity values are most at risk. If major commodity prices remain at current levels, our analysis implies that, in the absence of substantial restructuring, nearly all the equity value of both Glencore and Anglo American could evaporate.
 In the current climate, debt is fast becoming the most important consideration for mining company management. “Never underestimate the ability of debt to undermine the value of equity,” neatly sums up the problem that equity holders face when considering how the highly leveraged companies, such as Glencore, see their much diminished earnings absorbed by the obligations to debtholders.
 Our methodology values the equity portions of company Enterprise Values by applying a constant P/E multiple to our earnings forecasts going forward. Under our base case commodity assumptions, which assumes gently recovering prices, we expect a challenging 2016 for the majors, but foresee shareholder value in all companies appreciating steadily from 2017 onwards.
 Our ‘spot scenario’, however, graphically illustrates the rapidly shrinking slice of “equity pie” left for shareholders should commodity prices not recover. Under such a scenario, the value for Glencore and Anglo American equity holders is virtually eliminated given sustained depressed earnings, particularly in Glencore’s case as a consequence of its higher debt base, the recent refinancing notwithstanding (see: Refinancing and restructuring – some breathing space, 23rd Sept). While the picture is less extreme for BHP Billiton and Rio Tinto, they too would face a substantial challenge to meet management’s apparently steadfast commitment to maintaining dividends, which we estimate would consume 50% of ongoing operating cash flows in this scenario.
 We suspect Glencore’s recent restructuring may prove just the start for the majors if current spot prices prevail for much longer, and this serves to support our concern that we are still a distance away from a “value point” in the Mining sector."

Worth no mre than 20p I believe.

Why Glencore shares could be worthless

So the article says 37p is on the cards... very grim with 30 billion debt. Disastrous!

From the same article :-

"Should Glencore actually close a session below 97p, it's going to need a bit of a miracle as there's clear air between such a point and 37p," says Strang.

Does it mean the price will be either 97+ or 37-?
Which bank lent to them?
How are they going to be affected?

I still hold from 340!!!

I know the pain.

IF, IF, IF it survives?

what price to buy?

It is tempting as there seems to be a smell of capitulation with volume today - doubtless exaggerated by the numerous doom laden articles - hmmm.

Skinny, you are a brave man to hold this.

I don't (yet)! :-)

AAL looks tempting too but where is the bottom?

Sitting in my armchair and occasionally squeaking!

In a media statement on Wednesday, Glencore said it has taken proactive steps to position the company to withstand current commodity market conditions. "Our business remains operationally and financially robust - we have positive cash flow, good liquidity and absolutely no solvency issues," it said. Glencore said it's getting on and delivering a suite of measures to reduce its debt levels by up to $10.2bn.

30 Sep Deutsche Bank 190.00 Hold
30 Sep Citigroup 170.00 Buy
30 Sep JP Morgan... 150.00 Neutral

Barclays note on the current situation:
"Business remains operationally and financially robust and is de-gearing on spot prices
Management reiterated that the business remains operationally and financially robust and that there are no liquidity or solvency issues. The company has positive cash flow and as a result the balance sheet is continuing to de-gear.
The company does not have any debt covenants and its bank facilities and extension of these facilities are not reliant on specific credit ratings. The two RCF facilities (syndicated with 60-70 banks) have no conditions attached to them (no MACs) and can be rolled at Glencore’s option – these are rolled in March-May of every year – even in 2008/09 the company was still able to comfortable roll its $9bn RCF facilities although at a higher spread (200bps).
Little credit or counterparty risk in commodity trading
One of the misconceptions is that Glencore needs its IG credit rating for the marketing business. Most of the other commodity traders have a lower rating than GLEN and they are still able to operate in this environment. The higher cost of trading does impact trading competitiveness but most of the traders pass this through to customers. At the moment this appears to be minimal given the low interest rate environment.
The other misconception in the market surrounds credit and counterparty risk – almost all trade in commodity markets use Letters of Credit (LCs) that are guaranteed by banks. This is the key difference in commodity markets vs financial markets where there is not this transmission mechanism – so very little credit and counterparty risk exist in commodities trading. Glencore has up to $50bn of LC lines with over 70 banks for trading, of which 30% is currently utilised (c.$17bn currently for trading which is in-line with RMI size). Glencore also immediately hedges commodities taken on its trading book so there should be no price risk. Most of these trades are hedged on exchanges such as the LME, so the counterparty is the LME Clearing House. However, a small proportion of the trades (3%) cannot be hedged as there is no liquid forward/futures market (e.g. vanadium). We also note that the company cannot hedge physical premiums, so they will always be long metal premia – this is what caused some of the M2M losses in trading in the H1 results (c.$200m).
The trading business is mostly vertically integrated except oil.
The average inventory turn for the trading business is about 32 days – within this oil trading has a much faster cycle of c.8 days while metals is c.40 days. As commodity prices fall, cash is naturally released back to the balance sheet from the fall in RMIs (per inventory cycle). RMIs amount to c.$17bn, of which oil is roughly $12bn. RMIs are audited and have to be deliverable to a liquid market.
The only part of Glencore’s commodity trading business that is regulated is the oil business (UK regulator).
Further opportunity to reduce working capital in marketing
As the company mentioned at its interim results, management believe there are further opportunities to reduce working capital further in the trading business. Within RMIs there is a long tail of less profitable trades (8-10% ROE vs the overall business of 25-75% ROE) – a lazy balance sheet historically has allowed traders to chase these lower returning trades. However, with the company now much more focused on capital allocation within the marketing business, mgt mentioned they could see a further $2-3bn reduction. CFO Steve Kalmin mentioned in the interim results presentation that c.$5bn reduction in working capital would only sacrifice $100m of EBIT in marketing due to this long tail of lower ROE trades.
$10bn debt reduction/capital preservation programme on track
We believe the company’s $10bn capital preservation programme is a credible way to reduce net debt from about $30bn in June to the low 20s by the end of next year. Of that $10bn $5bn has already been delivered with more to come over the coming months and next year. Management commented that this programme was envisaged for a low $4000/t ($1.80/lb) copper and $50/t coal environment. For the asset sales (guidance of $2bn), management hopes to complete the streaming deal by the end of this year and the sale of a minority stake in its Ags business early next year – we believe this is in line with market expectations."

Glencore's Glasenberg Talks Up Copper's Prospects--Update
Print
Endeavour International Corp. (USOTC:ENDRQ)
Intraday Stock Chart
Today : Monday 5 October 2015


By Scott Patterson
Glencore PLC Chief Executive Ivan Glasenberg, speaking publicly for the first time since his company's shares plunged a week ago, said he believes copper prices will ultimately rise as mine supplies are pulled from the market.

Mr. Glasenberg, speaking in central London, said the Swiss mining giant's plans to take 400,000 tons out of the market with the shutdown of two copper mines in Africa, announced in its sweeping balance-sheet restructuring plan last month, "should have an effect on the price" as demand ultimately outweighs supplies.

Mr. Glasenberg has blamed hedge funds, including some operating in China, for artificially pushing copper prices lower.

"The funds are playing the commodity cycle," Mr. Glasenberg said. "But in the end the fundamentals will prevail," noting that "demand is still there."

Mr. Glasenberg said his company has seen a "massive destocking around the world" this year in commodities such as copper as prices decline. He said there is only three weeks supply of copper stock available in warehouses, which he said is "the lowest inventory I've seen in copper stocks for many years."

Glencore is particularly vulnerable to sliding copper prices. The company produced 730,900 tons of copper in the first half of 2015. A 10% decline in copper from where it stood in the first half of the year would erase about $1 billion from Glencore's adjusted earnings, according to estimates by Liberum Capital analyst Ben Davis. On the other hand, a 10% gain would be a boon for Glencore and help ease fears about its high debt levels.

Glencore last month said it planned to shutdown one copper mine in the Democratic Republic of the Congo and another in Zambia for 18 months while it upgrades the infrastructure. Some had questioned whether the company would get pushback from the governments of the two countries amid concerns that the shutdowns would hurt employment.

Mr. Glasenberg said Monday at the FT Africa conference that he "must congratulate both the president of the DRC and Zambia because they understood what we're doing." Since the mines were unprofitable, the countries weren't getting a decent tax return on the production of the mines, he said.

"Long term it is better for them when we do dig it out of the ground and they'll get more revenue, more taxation," he said. "There is no reason to keep digging the stuff out of they round when you're not making a decent margin," Glencore's CEO said.

Plunging commodity prices have sapped Glencore's earnings this year. In the first six months, it posted a loss of $676 million, and its high debt levels have sparked concerns that the company could be slapped with downgrades by ratings firms if its earnings fall much further.

Mr. Glasenberg has been scrambling to allay investor fears about the impact of sliding commodities. He has been jetting around the world, visiting mines, investors, banks and trading offices trying to gather information and allay market fears. The CEO believes markets have overreacted to the firm's situation, though he has noted the risks of carrying too much debt and owning mines at a time of weak commodity prices, according to people who have spoken with him in recent weeks.

The company's shares and bonds have been whipped around over the past week by those fears, including a 29% drop a week ago that has since been erased. The stock was up around 7.4% in morning trading in London, thought the shares are still down by nearly two thirds so far this year.

Glencore executives are struggling to stop the bleeding by selling assets and cutting billions in debt. Last month, Glencore raised $2.5 billion in a share offering. It also said it would suspend its dividend and raise cash by selling assets

Glencore says its finances are solid and credit lines from more than 60 banks are intact. Banks have appeared to stand by those credit agreements.

Good day here ..

More than half of the leading banks' exposure to commodities is through loans to Glencore, the debt-laden mining group and commodity trader whose shares have suffered sharp swings since a leading analyst warned that they could be worthless. - The Times.

.. Watch out chaps!

Fantastic upswing here the same as KAZ in the last few days ..

http://www.telegraph.co.uk/finance/markets/ftse100/11916483/FTSE-hits-seven-week-high-as-Morgan-Stanley-rates-mining-sector-attractive.html

Canaccord note:
"Share price collapse.........and partial recovery
Glencore's shares slumped from 300p in early May, to c.120p in early September, triggering a capital preservation/debt reduction programme (announced 7 September) worth US$10.2bn and intended to reduce net debt to the low US$20bn's by end 2016. Shares continued to fall on debt concerns, collapsing 29% on 28 September to 69p, but have since recovered to c.120p. In our view, the share price fall was driven by excessive fears of a potential credit downgrade/debt default, and is not warranted.
Glencore's debt: a reality check
Even after removing readily marketable inventories from net debt, Glencore carries midyear net debt of US$29.6bn, significantly more than any of its FTSE100 mining peers. However, a review of statements from Moody's and S&P demonstrates that the ratings agencies are comfortable leaving Glencore's investment grade ratings unchanged at BBB/Baa2, particularly given the 7 September announcement. Both agencies have moved to a negative outlook, which seems sensible given the impact on cashflows should commodity prices fall demonstrably lower on a sustained basis. While both agencies note that Glencore will be outside the preferred guidelines for its credit rating they see this as a temporary (c.6-18-month) issue. In its funding factsheet, released 6 October, Glencore outlined the limited impact of a credit rating downgrade.
Glencore's debt: our view
In this note we outline changes to our commodity price estimates, and revise our forecasts for these, for lower unit costs (due to weakening commodity-backed currencies vs US$), and for the capital preservation/debt reduction programme. While Glencore has no formal debt covenants, management's internal targets are greater than 25% funds from operations (FFO)/net debt and less than 3x net debt/adjusted EBITDA. Based on our forecasts, we see FFO/net debt dropping below this threshold at YE2015, but recovering in 2016, while net debt/adjusted EBITDA should remain below the targeted level for both years.
Changes to forecasts
Our adjusted EBITDA estimate drops from US$9,397M to US$9,141M in 2015, and from US$11,074M to US$9,231M in 2016. Our underlying diluted eps forecast remains unchanged for 2015 at 6.3c and drops from 7.8c to 4.4c in 2016. We believe that EBITDA is the most relevant metric at this point in the cycle.
Target price lowered; Speculative Buy recommendation maintained
Our target price is a function of NPV, EV/EBITDA relative to the company's history, and rolling 12-month PE relative to the market. Given our lower commodity price assumptions, we reduce our target price from 220p to 190p. However, this still leaves upside of over 50% to our target price, and we remain positive on the stock, retaining our Speculative Buy recommendation. There are clearly still potential risks should commodity prices decline further but we believe that the shares have been oversold on debt concerns. Certainly, the ratings agencies don't seem to be as troubled as some in the equity market; investors should take note of that."

http://www.moneyam.com/action/news/showArticle?id=5129666

Same here ,onward ..

StockMarketWire.com
Glencore has started a process to sell its wholly-owned Cobar copper mine in Australia and Lomas Bayas copper mine in Chile.

Glencore says the sale process is in response to it receiving a number of unsolicited expressions of interest for these mines from various potential buyers.

This will allow potential buyers to bid to purchase either one or both of the mines and may or may not result in a sale.

Glencore will issue an update only in the event a sale is agreed or disclosure is otherwise required.

Liberum Capital Hold 127.98 129.10 125.00 125.00 Reiterates

Deutsche Bank Hold 127.98 129.10 190.00 190.00 Retains

JP Morgan Cazenove Neutral 127.98 129.10 150.00 160.00 Retains

I think you can throw darts for a price on any of these miners at the moment ,the way they have been dragged down and then back up again all in the space of a couple of months .

Take your pick .

12 Oct Liberum Capital 125.00 Hold
12 Oct Beaufort... N/A Hold
12 Oct Deutsche Bank N/A Hold
12 Oct Deutsche Bank 190.00 Hold
12 Oct JP Morgan... 160.00 Neutral

good reversal..

StockMarketWire.com
Glencore posts a net loss attributable to equity holders of USD4,964m for 2015 comapred with net income of USD2,308m last time.

Adjusted EBITDA fell by 32% to USD8.7 billion due to substantially weaker commodity prices, partially offset by cost efficiencies and favourable producer country currencies:

- Marketing EBITDA down 11% to $2.7 billion, reflecting the high 2014 agricultural base and challenging metals' marketing conditions in H1 2015 (as noted in our 2015 Half-Year Report), offset by a robust performance from oil marketing.

- Industrial EBITDA down 38% to $6.0 billion, reflecting lower prices in all key commodities and decisive action to reduce supply and associated capital expenditures / operating costs within our coal, zinc, copper and oil assets. These steps are aimed at preserving resource value for the longer term.

2015 industrial capital expenditure of $5.7 billion was in line with previous guidance. 2016 industrial capital expenditure has been cut a further $300 million to $3.5 billion.

And the group said it delivered significant real unit cost reductions in 2015. Targeting to capture a further $400 million of savings during 2016.

Chief executive Ivan Glasenberg said: "Our rigorous focus on debt reduction, supply discipline and cost efficiencies enabled Glencore to record a robust performance in difficult market conditions. Our diversified portfolio, based around a core of Tier 1 assets, combined with our highly resilient marketing business, underpins our ability to continue to be comfortably cash generative at current and even lower commodity prices."

2015 Annual Report of Glencore plc ("Glencore" or the "Company")

Glencore has today:

· published its Annual Report for the year ended 31 December 2015 on its website www.glencore.com as required by DTR 6.3.5 R (3); and
· submitted a copy of the Annual Report to the UK National Storage Mechanism in accordance with LR 9.6.1 R.
The 2015 Annual Report will shortly be available for inspection on the National Storage Mechanism: www.morningstar.co.uk/uk/NSM

Glencore will hold its 2016 Annual General Meeting in Zug on 19 May 2016. The notice of meeting will be released in April 2016.

The Appendix to this announcement contains the following additional information which has been extracted from the 2015 Annual Report for the purposes of compliance with DTR 6.3.5 only:

· a description of principal risks and uncertainties;

· a note on related party transactions; and

· the Directors' Responsibilities Statement.


more.....

This has been hit hard ,down 18% today .

Final Results

Glencore has emerged as the top shareholder of embattled Australian iron ore miner Atlas Iron after a debt-to-equity transaction, giving the global mining and trading company its only direct exposure to production of the steelmaking ingredient.

Glencore has acted as an intermediary in buying and selling iron ore for third parties since 2008 but has mostly avoided, either by design or circumstances, the production side of the sector, which is dominated by Vale, Rio Tinto and BHP Billiton.

Glencore subsidiary Maru Sky earlier this year acquired a portion of Atlas debt as the small Australian miner negotiated with creditors to fend off collapse brought on by weak iron ore prices.

Atlas told the Australian Securities Exchange that Maru Sky had converted its debt ownership for 8.47 percent in equity, making it the single biggest shareholder. The next biggest is Commonwealth Bank of Australia with 6.36 percent.

Does it mean that Glencore expect Iron Ore prices to rise?

Jefferies International today reaffirms its hold investment rating on Glencore PLC (LON:GLEN) and raised its price target to 160p (from 150p).

Haitong Securities today upgrades its investment rating on Glencore PLC (LON:GLEN) to buy (from neutral) and raised its price target to 194p (from 141p).

StockMarketWire.com
Glencore reports strong and improving cash generation in the first half despite lower commodity prices and production volumes.

Adjusted EBITDA of $4.0 billion was down 13% and funds from operations of $2.8 billion fell by 21% but capital expenditure of $1.6 billion was down 51%, comfortably offsetting the reduced FFO.

The group reports outstanding first-half operational unit cost performance in our key commodities: copper 97c/lb, zinc -3c/lb (15c/lb ex-gold), nickel 246c/lb and thermal coal $37/t.

Full year unit cost estimates have been reduced to reflect stronger than expected cost improvements over the year to date.

Chief executive Ivan Glasenberg said: "Since we announced our measures to reduce debt levels last September, we have made considerable progress towards achieving our goals. Supporting these targets, our industrial assets are demonstrating industry-leading cost and cashflow performances, while the resilience of our Marketing business has again been demonstrated, with a 14% increase in its first half Adjusted EBIT to $1.2 billion.

"We have already largely achieved our asset disposals target of $4-5 billion with a diverse and material pool of asset sales' processes also on-going. Our divestment strategy remains one of maximising value for shareholders through identifying assets where overall Glencore franchise positioning, optionality and value is substantially preserved or even enhanced. The Glencore Agri stake sale, for example, positions it for the industry's inevitable consolidation in the years to come. We remain confident and focussed on achieving even lower than previously indicated net funding and net debt levels by the end of this year.

"After a difficult start to the year, the more constructive tone of markets in recent months has helped support the pricing of many of our key commodities. While we are highly cash generative at current spot prices, we remain mindful that underlying markets continue to be volatile. We are alert to and have a high degree of proven flexibility in adapting to changing market conditions."

Exane BNP Paribas today reaffirms its outperform investment rating on Glencore PLC (LON:GLEN) and set its price target at 338p

Credit Suisse today reaffirms its outperform investment rating on Glencore PLC (LON:GLEN) and raised its price target to 340p (from 320p).

Jefferies International today reaffirms its buy investment rating on Glencore PLC (LON:GLEN) and raised its price target to 350p (from 300p).

JP Morgan Cazenove today reaffirms its neutral investment rating on Glencore PLC (LON:GLEN) and cut its price target to 250p (from 260p)

StockMarketWire.com
Glencore has confirmed it is in final-stage negotiations regarding a transaction involving the acquisition, as part of a consortium with the Qatar Investment Authority, of a 19.5% interest Rosneft for £10.2 billion.

Under the proposed arrangements, Glencore would commit £300 million in equity with the balance of the consideration for the acquisition of the Shares to be provided by QIA and by non-recourse bank financing.

The other material terms of the proposed transaction for Glencore are: - New 5 year offtake agreement with Rosneft representing a sizeable additional 220,000 bbls/day for the Glencore Marketing business.

- Additional opportunities, through a strategic partnership for further cooperation, including infrastructure, logistics and global trading.

- Other than the economic exposure represented by the Glencore Equity, (amounting to a c.0.54% indirect equity interest in Rosneft), Glencore would not have any economic exposure to its interests in the Shares.

- Limited liability structure fully ring-fenced and non-recourse to Glencore apart from its £300 million equity contribution and the provision of certain guarantees, the risks of which would be fully indemnified by appropriate financial institutions.

Once the transaction is entered into, it will be conditional on the subsequent finalisation of all relevant financing, guarantee and other agreements and would be expected to close in mid-December.

StockMarketWire.com
A 50:50 consoritum between Glencore and Qatar Investment Authority has agreed to acquire a 19.5% interest in the Rosneft from Rostneftegaz for €10.2 billion.

Under the proposed arrangements, Glencore will commit €300 million in equity and QIA will commit €2.5 billion in equity to the consortium with the balance of the consideration for the acquisition of the shares to be provided by non-recourse bank financing, principally by Intesa Sanpaolo, with Russian banks also providing financing and credit support.

The other material terms of the transaction for Glencore are:

- New 5 year offtake agreement with Rosneft representing a sizeable additional 220,000 bbls/day for the Glencore Marketing business

- Additional opportunities through a strategic partnership for further cooperation, including infrastructure, logistics and global trading

- Other than the economic exposure represented by the Glencore Equity (representing a 0.54% indirect equity interest in Rosneft), Glencore will not have any economic exposure to its interests in the Shares

- Limited liability structure fully ring-fenced and non-recourse to Glencore apart from its €300 million equity contribution and the provision of margin guarantees of up to €1.4 billion, for which Glencore has obtained full indemnification from appropriate Russian banks.

The overall transaction, including the acquisition of the Shares, is conditional on the finalisation of all relevant financing, guarantee and other agreements and is expected to close in mid-December.

Glencore chief executive Ivan Glasenberg said: "We are delighted that the strong relationships that already exist between Rosneft, QIA and Glencore have enabled us to successfully enter into this transaction. Glencore looks forward to working with both parties to take advantage of the significant opportunities which are expected to be presented across the Russian and global oil markets."

StockMarketWire.com
Glencore's adjusted earnings before interest, tax, depreciation and amortisation rose by 18% to $10,268m in 2016.

Adjusted EBIT jumped by 81% to $3,930m and net income attributable to equity holders pre-significant items rose by 48% to $1,992m.

Chief executive Ivan Glasenberg said: "Since our IPO in 2011 and subsequent acquisition and integration of Xstrata, Glencore has never been so well positioned as it is today.

"Our swift and decisive actions to reposition and optimise our capital structure and industrial asset portfolio have reduced net funding by $14.7 billion over the past eighteen months and generated more than $1.3 billion in cost savings at our industrial assets in 2016.

"As we look forward, increasingly favourable fundamentals provide the potential to create significant long-term value for Glencore shareholders via our leading portfolio of well capitalised tier one assets and resilient marketing business, combined with significant low-cost copper and zinc growth options and disciplined approach to supply."

StockMarketWire.com
Glencore's first quarter production was hit by some severe weather, including Cyclone Debbie in Australia, flooding in Peru and higher than average rainfall in the DRC and Hunter Valley.

Copper production from own sources of 324,100 tonnes was 3% down on Q1 2016, reflecting grade variations at Alumbrera, the zinc/copper mix at Antamina as its mine plan progresses and ore handling difficulties at Mutanda due to heavy rain.

These were partly offset by an increase in own sourced production from North Queensland.

Glencore said own-sourced zinc production of 279,200 tonnes was 9% up on Q1 2016, mainly reflecting the mine plan sequencing at Antamina.

Modest production increases in the rest of the portfolio were within expected ranges.

It said there were currently no plans to restart idled capacity in Australia and Peru.

It said that own-sourced nickel production of 24,900 tonnes was down 10% on Q1 2016, reflecting maintenance at Murrin Murrin and Nikkelverk, partly offset by the ramp-up at Koniambo.

Attributable ferrochrome production of 439,000 tonnes was 10% up on Q1 2016, reflecting operating efficiencies and the restarting of a furnace in H2 2016.

Coal production of 30.9 million tonnes was 4% up on Q1 2016, reflecting stronger coking coal production, with the base period impacted by geological challenges, and planned ramp-ups within the Australian thermal portfolio.

Glencore's oil entitlement interest of 1.4 million barrels was down 43% on Q1 2016, reflecting ongoing depletion.

It said a single-rig drilling campaign would re-commence in Chad in H2 2017.

An update continued: "As announced on 14 March 2017, we have agreed to sell our interests in Rosh Pinah and Perkoa, with completion expected in H2 2017, subject to customary approvals.

"As announced on 13 February 2017, we increased our stakes in Katanga and Mutanda.

"Both assets were already controlled subsidiaries of Glencore with production historically reported on a 100% basis, resulting in no reporting changes, following the completion of these transactions.

"Full year 2017 Marketing EBIT guidance now $2.3 billion to $2.6 billion (previously $2.2 billion to $2.5 billion)."

Macquarie comment today:
"The ~15% gains by the peer group in the year to mid-February have evaporated. Recent oil price weakness, a stronger USD and tentative signs of tightening in China have sent commodity prices reeling. The China restock is over and construction activity will likely weaken into mid-year, but this macro backdrop is already reflected in our commodity price forecasts. We therefore view this as a buying opportunity. Glencore and South32 are now trading at their biggest valuation discounts from mean levels since February 2016, while Rio’s valuation discount (EV/EBITDA) is at its widest in over three years. Moreover, an aversion to M&A and new project development, coupled with significantly lower costs, should support healthy cash returns for these miners going forward.

§ Glencore offers double the earnings growth of the peer group over the next five years which is being driven by a combination of strong production growth (in copper and zinc) coupled with associated unit cost savings, as well as an expected recovery in Marketing earnings over the coming years as due to a combination of production/volume growth, higher interest rates and tighter physical market conditions;

§ Glencore’s superior growth is not being reflected in the current share price, with Glencore trading on the lowest EV/EBITDA multiple amongst the majors over the next three years

§ The EV/EBITDA multiple implied by our new target price of £3.85 is undemanding at 5.8x and simply assumes a reversion to the historical average multiple;

§ There is material upside to our new TP – applying our implied BHP/Rio target multiples to Glencore would yield a fair value of £4.50/sh.

§ Glencore’s commodity basket is forecast to have the most consistent positive price momentum over the next five years, relative to 2016 levels, in large part due to its outsized exposure to copper and zinc as well as the absence of iron ore in the portfolio; and

§ Glencore has both the greatest ability and propensity to return cash to shareholders amongst the majors with $12bn of excess cash to distribute by 2019 (21% of current market cap) and $21bn by 2021 (41% of market cap) on our forecasts.

HSBC today reaffirms its buy investment rating on Glencore PLC (LON:GLEN) and cut its price target to 380p (from 390p)

StockMarketWire.com
Glencore's own-sourced copper production fell to 642,900 tonnes in the first half of the year - down 9% on last time.

The group said this reflected a transition to mining a greater portion of copper/zinc ores at Antamina (noting concurrent higher zinc grades/production), temporary lower copper grades at Antapaccay, the effects of wet weather at Mutanda resulting in reduced ore throughput, and lower production/pit stability issues at Alumbrera as it neared the end of life.

Own-sourced zinc production of 570,800 tonnes was up 13%, reflecting the Antamina increase and generally solid performances across the portfolio.

Own-sourced nickel production of 51,200 tonnes was down 10%, reflecting scheduled maintenance at Murrin and INO, partly offset by the stabilising and improving performance at Koniambo.

Attributable ferrochrome production of 836,000 tonnes was up 10%, reflecting more furnace production time, period over period, and strong furnace operational performances.

Coal production of 61.1 million tonnes was up 4% on H1 2016, mainly reflecting planned increases in the Australian coal portfolio.

Glencore's oil entitlement production interest of 2.6 million barrels was down 39% on H1 2016, reflecting natural field decline with no drilling activity.

It said that as previously noted, a single-rig drilling campaign had recommenced in Chad in H2 2017.

Glencore said the announced sales of Rosh Pinah and Perkoa to Trevali Mining were subject to customary closing conditions, with transaction currently expected to complete in August.

Zinc full year production guidance had been adjusted to reflect the expected timing of this transaction.

Proposed acquisition of shareholdings in Chevron South Africa and Chevron Botswana
Glencore has entered into an agreement with Off The Shelf Investments Fifty Six (RF) Proprietary Limited (OTS) to acquire from OTS (i) a 75% stake in Chevron South Africa Proprietary Limited (Chevron SA) and certain related interests and (ii) the entire issued share capital of Chevron Botswana Proprietary Limited (Chevron Botswana) (together the Assets and these companies together the Companies) following closing of OTS's exercise of its pre-emptive right to acquire the Assets from the Chevron group. During its acquisition process Glencore will be supporting OTS as their technical and financial partner. The aggregate consideration (subject to adjustment for debt and working capital of the Companies at closing) is US$973 million.

The Assets comprise the interests of the Chevron group in its manufacturing, retail and industrial supply business in South Africa and Botswana. Glencore believes that the Assets provide an attractive downstream opportunity for its oil business. The acquisition will include undertakings as to retention of the local management team and workforce.

The consideration will be payable in cash on closing and will be funded from Glencore's own cash resources. Glencore intends to manage its overall oil asset portfolio to ensure that, including this transaction, net additional capital investment is limited to less than US$500m over the next 12 months, consistent with Glencore's conservative financial framework targets.


The transaction is conditional on the receipt of all necessary regulatory approvals by OTS and Glencore and is expected to close in mid-2018. A further announcement will be made in due course.

Campaigners called for the Serious Fraud Office to investigate Glencore, one of the largest companies quoted on the London Stock Exchange, after leaked documents showed it secured the services of a controversial Israeli diamond trader to negotiate with an African government. The Swiss-based mining group, which operates two copper mines in the Democratic Republic of Congo, has a longstanding business partner in the shape of Dan Gertler, an Israeli tycoon and friend of President Kabila of the Democratic Republic of Congo.

Societe Generale today reaffirms its buy investment rating on Glencore PLC (LON:GLEN) and raised its price target to 470p (from 400p).

StockMarketWire.com
Glencore reported own source copper production fell 116,100, or 8%, to 1,309,700 tonnes for the 12 months through 31 December 2017 compared to 2016.

The fall in own source copper output reflected the Ernest Henry minority sale in Q4 2016, end of life production declines at Alumbrera and various temporary effects including lower throughput at Mutanda (due to constrained supply of sulphuric acid) and smelter maintenance at Mount Isa. Fourth quarter production of 363,200 tonnes was 59,600 tonnes, or 20% higher than in Q3, reflecting the resolution of such temporary impacts.

Own sourced zinc production of 1,090,200 tonnes was in line with output a year ago, as the increased output in Antamina zinc production was offset by the disposals of the African mines to Trevali Mining, and lower production, as expected, at Mount Isa.

Own sourced nickel production of 109,100 tonnes was down 5% compared to 2016, as changes in the use of third party versus own sourced feeds in the INO circuit was partly offset by strengthening operational performance at Koniambo.

Attributable ferrochrome production of 1,531,000 tonnes was in line with 2016.

Coal production of 121 million tonnes, was 3% lower compared to 2016, as productivity improvements and Glencore's higher equity share in certain mines were offset by the impact of reductions associated with industrial action and adverse weather events.

Glencore's oil entitlement interest of 5.1 million barrels was 1.4 million barrels, or 19%, lower compared to 2016, reflecting a period of inactive field development amid a low price environment. While drilling in Chad recommenced in H2 2017 with a single-rig campaign, which is expected to offset natural field declines in Equatorial Guinea.

By Oliver Griffin
Glencore PLC (GLEN.LN) said Wednesday that net profit for 2017 rose more than four times the previous year's figure, beating analyst estimates and marking the mining company's strongest year on record.

The Anglo-Swiss mining and commodities trader said that profit for the year ended Dec. 31 increased to $5.78 billion, from $1.38 billion in 2016.

Revenue for the year rose 34% to $205.48 billion, Glencore said. Net debt fell to $10.67 billion by the end of the year, from $15.53 billion at the end of 2016.

A consensus estimate from 10 analysts compiled by FactSet had forecast net income for the year of $5.68 billion, while 19 analysts on FactSet forecast revenue of $213.88 billion.

The company also declared a dividend for the year of $0.20 a share.

Chief Executive Ivan Glasenberg said that strong cash-flow generation was reflected by a 49% increase in funds from operations, and said that the company was looking to the future with confidence.

Write to Oliver Griffin at oliver.griffin@dowjones.com

(END) Dow Jones Newswires

February 21, 2018 02:27 ET (07:27 GMT)

Copyright © 2018, Dow Jones & Company Inc.

StockMarketWire.com
Rio Tinto agreed to sell its interests in the Hail Creek coal mine and the Valeria coal development project in Queensland, Australia, to Glencore for $1.7bn, the companies said in separate statements.

The sale included Rio Tinto's 82% interest in the Hail Creek operating mine and its 71.2% interest in the Valeria project.

The remaining 18% of Hail Creek was currently owned by the Australian subsidiaries of three Japanese buyers: Nippon Steel Australia, Marubeni Coal and Sumisho Coal Development.

Glencore said each partner could potentially sell its share to Glencore through a "tag-along" right with respect to the transaction, which could result in additional consideration of up to $340m.

'The sale of Hail Creek and Valeria delivers compelling value for our shareholders and continues our strategy of strengthening our portfolio, focusing on highest returns, maintaining a strong balance sheet and allocating capital to the highest value opportunities,' chief executive chief executive J-S Jacques said.

StockMarketWire.com
Glencore said state-owned Gecamines began legal action to potentially dissolve the Kamoto Copper Company in the Democratic Republic of the Congo.

The state had also requested the appointment of an expert to assess the company's financial position and recapitalisation plan amid claims it failed to address a capital deficiency.

Glencore said its Katanga Mining subsidiary was mulling options to recapitalise Kamoto Copper Company, including converting debt into equity or forgiving a portion of the company's debt in order to resolve the legal dispute.

StockMarketWire.com
Glencore said Thursday copper, and cobalt output rose in the first quarter of the year but silver and gold production fell.

The company's full-year production guidance was unchanged, while earnings from its trading arm were expected in the top half of a $2.2bn to $3.2bn range.

Copper production rose 7% to 345,400 tonnes in the first quarter, from 324,100 tonnes in the same period a year ago as its Katanga's whole ore leach project got underway in December 2017, partly offsetting the impact of maintenance at the Mount Isa smelter and expected decline at the Alumbrera mine.

Cobalt output climbed 11% to 7,000 tones, while both gold and silver production fell 11%.

The firm maintained 2018 output guidance of roughly 1,465kt of copper and 39kt of cobalt.

Zinc production fell 13% to 242,700, in line with expectations, weighed by the disposal of Rosh Pinah and Perkoa in August 2017.

Nickel production rose 21% to 30,100 amid increased output at its Koniambo's processing plant, where both production lines had begun operations. Ferrochrome production fell 7% to 409,000 tonnes as both furnace downtime and challenges with the subsequent restart disrupted output, the firm said.

Coal production fell 1 % to 30.7m tonnes. For 2018, the Hail Creek JV acquisition was expected to offset lower coal production from Prodeco.

primarily because it is a key cobalt producer (key component for electric car battery cells) i bought into this one a couple of weeks back

given that world economies look to be gently recovering, base metals will be prime beneficiaries

I like GLEN but their exposure in DRC worries me. Not holding at the moment.

StockMarketWire.com
Glencore said Friday it would pay royalties due to Ventora Development Sasu in a currency other than US dollars to avoid sanctions and settle a legal dispute, averting the risk of Ventora seizing its assets.

The settlement would allow Glencore and Katanga Mining to continue with development activities in the Democratic Republic of Congo.

Glencore estimated that the amount payable by Mutanda to Ventora - a company affiliated with sanctioned Israeli billionaire and former business partner Dan Gertler - would be approximately EUR10.5m per quarter beginning in July 2018.

'Glencore believes that payment in non-US dollars of royalties and access premiums to Ventora without the involvement of US persons would appropriately address all applicable sanctions obligations,' the miner said.

Mutanda would also make a true-up royalty payment of about EUR4.6m to Ventora on the date of the settlement agreement.

Kamoto Copper company, or KCC, would pay royalties to Ventora at a rate of 2.5% of 'net sales,' amounting to about EUR10m per quarter in 2018 and approximately EUR16.5m per quarter in 2019.

The announcement comes after Ventora in April had obtained court injunctions to pay against KCC and Mutanda in the amount of $2.86bn and $869m, respectively.

If the injunctions had become final, Ventora potentially would have been allowed to permanently seize assets at the Mutanda and KCC mines up to the amounts of these injunctions, Glencore said.

Morgan Stanley today reaffirms its equal weight investment rating on Glencore PLC (LON:GLEN) and raised its price target to 400p (from 390p).

StockMarketWire.com
Shares of miner and commodities trader Glencore fell sharply Tuesday after the company received an subpoena from the US Department of Justice to hand over documents and records related to its activities in Nigeria, the Democratic Republic of Congo and Venezuela dating as far back as 2007.

That's been coming for a long time. Particularly wrt the shenanigans in the DRC. It may be considered to be the only way to do business in those places but it actually isn't. The corrupt often admire those with principles.

StockMarketWire.com
Miner and commodities trader Glencore said Thursday it had launched its share buyback programme of up to $1bn.

The miner and commodities trader said that it would purchase £350m worth of shares in the first part of the buyback programme, which gets underway on Thursday, and is expected to end by close of dealings on 7 August 2018.

StockMarketWire.com
Miner and commodities trader Glencore said Thursday it had launched its share buyback programme of up to $1bn.

The miner and commodities trader said that it would purchase £350m worth of shares in the first part of the buyback programme, which gets underway on Thursday, and is expected to end by close of dealings on 7 August 2018.

Barclays Capital today reaffirms its overweight investment rating on Glencore PLC (LON:GLEN) and cut its price target to 400p (from 450p).

StockMarketWire.com
Glencore said Wednesday first-half profit rose 13% supported by a favourable trading and commodity price environment.

For the six months to 30 June, net income rose 13% to $2.8bn, underlying earnings rose 12% to $0.19 a share and adjusted earnings (EBITDA) rose 23% to $8.27bn.

Strong performances from metals and minerals and energy products segments, which rose 17% and 23%, respectively, supported the rise in profits.

The miner reported capital expenditure of $2.17bn, compared with $1.68bn spent in the first half of 2017.

Glencore said the second instalment of the 2018 distribution of $1.4bn would be paid in September.

Net debt was reduced 16% to $9bn from $13.9bn.

'The strength of our diversified business model and commodity mix is once again demonstrated with a 13% increase in net income and a 23% increase in Adjusted EBITDA to $8.3 billion,' said Glencore's Chief Executive Officer, Ivan Glasenberg.

'Against a volatile but favourable trading and commodity price environment, Marketing performed towards the upper end of its guidance range with a 12% increase in Adjusted EBIT to $1.5 billion. Our Industrial business recorded Adjusted EBITDA of $6.7 billion, up 26%, reflecting the highly competitive cost positions of our asset base.'

JP Morgan Cazenove today downgrades its investment rating on Glencore PLC (LON:GLEN) to neutral (from overweight) and cut its price target to 370p (from 520p).

Mining conglomerate Glencore on Friday said third quarter own-sourced copper production increased 12% to 1.06m tonnes while own-sourced cobalt production was up 44% to 28,500 tonnes. Coal production rose 6% to 96.7m tonnes, reflecting the acquisition of interests in the HVO and Hail Creek mines in Australia in May and August 2018 respectively and the recovery in Australia from weather-related disruption and industrial action in 2017.