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.

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.