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Glencore Plc (GLCNF)

- OTCPK - Current
  • Today, 9:18 AM
    • Glencore's (OTCPK:GLCNF, OTCPK:GLNCY) giant McArthur River zinc mine in Australia could be ordered to close unless it improves its environmental record and increases a financial bond covering rehabilitation of the site, government officials say.
    • Residents near the mine have complained of smoke coming from a waste rock dump, traces of lead in fish, and a contamination incident last year which resulted in cattle in the area having to be destroyed.
    • Glencore says it is seeking a balanced solution that meets the expectations of the government, the mine and the community.
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  • Yesterday, 5:25 PM
    • Viterra, the Canadian grain handler owned by Glencore (OTCPK:GLCNF, OTCPK:GLNCY), agrees to acquire the largest oilseed processing plant in eastern Canada for $190M to triple crushing capacity.
    • The deal more than triples Viterra's crushing capacity, which the company says places it among the three biggest processors in Canada with Bunge and Cargill.
    • The Quebec plant on the St. Lawrence Seaway can process 1.05M metric tons/year of canola and soybeans; Canada is the world's top producer of canola.
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  • Wed, Aug. 19, 3:30 AM
    • With commodity prices continuing to slide, Glencore (OTCPK:GLNCY) reported a 56% slump in first-half earnings, posting adjusted net income of $882M in the six months to June 30.
    • Glencore shares are now heading south in London, erasing earlier gains triggered by news of a large investor stake.
    • The figures come as copper futures break another record. The red metal has now dropped below $5,000 a metric ton for the first time since the financial crisis.
  • Fri, Aug. 14, 9:14 AM
    • Glencore (OTCPK:GLCNF, OTCPK:GLNCY) says it sold stakes in three mines it inherited through its Xstrata takeover to an undisclosed buyer for a combined $290M, reducing its exposure to early stage, base metal projects.
    • The company sold its interests in the Tampakan copper mine in the Philippines, the Falcondo nickel mine in the Dominican Republic and the Sipilou nickel mine in Ivory Coast.
    • The sales come as prices for copper, coal and nickel slump near multi-year lows, and Glencore's shares trade in London at ~1.77 pence/share, their lowest level since its IPO listing of 530 pence/share in 2011.
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  • Thu, Aug. 13, 7:59 AM
    • Glencore (OTCPK:GLCNF, OTCPK:GLNCY) says it will incur a $790M impairment on its oil assets in Chad and cut capital spending this year to preserve cash, as it reports mixed production results for H1.
    • The company paid ~$1.35B, a 61% premium, for Caracal Energy in Chad in April 2014, but now plans to take the writedown after significantly reducing the number of drilling rigs in the country and changing the capital budget of its operations there.
    • Glencore says it is cutting its full-year overall spending estimate to $6B from an earlier outlook of $6.5B-$6.8B, as the slump in commodity prices has forced global miners to cut costs and rein in spending.
    • Glencore, which has the biggest exposure to copper of the large diversified miners, says its own sourced copper production fell 3% Y/Y to 730.9K metric tons in H1 due to lower output in South America.
    • H1 zinc output rose 12% to 730.3K metric tons, mainly due to the ramp-up of expansion projects in Australia, and coal production fell 4% to 68.7M tons mostly due to market-driven production cutbacks.
    • In its full-year forecast, copper output is estimated to be little changed at as much as 1.55M metric tons, while zinc output should gain to up to 1.57M and coal production will fall to as low as 135M tons from 146M tons last year.
  • Fri, Aug. 7, 11:49 AM
    • Glencore (OTCPK:GLCNF, OTCPK:GLNCY) is set to resume operations at its Optimum coal mine in South Africa after the government conditionally withdraws his suspension of the mine's license.
    • South Africa's mining minister had ordered Glencore to suspend operations at the loss-making mine earlier this week, and the company then said it was placing Optimum in the local equivalent of bankruptcy proceedings; the move was related to a dispute with state utility Eskom, which Glencore says has refused to renegotiate a long-running supply contract.
    • Optimum is contracted to supply 5.5M metric tons/year of coal, and Glencore had said at the current rate it would incur a 1.4B rand/year loss.
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  • Wed, Aug. 5, 12:45 PM
    • Glencore (OTCPK:GLCNF, OTCPK:GLNCY) has resumed discussions about Rio Tinto (NYSE:RIO) Australian coal assets after emerging that Mick Davis' X2 Resources also was interested in the Hunter Valley thermal coal assets, according to the Australian Financial Review.
    • X2 is said to have been working on a potential acquisition of Rio's coal mines for months, and talks between the companies were reported to be serious.
    • Glencore sees potential synergies from an acquisition or joint venture, given it owns neighboring mines and has sought a number of potential deals with Rio in recent years, but it has been reluctant to meet Rio's price expectations of more than $3B.
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  • Tue, Aug. 4, 8:31 AM
    • Glencore (OTCPK:GLCNF, OTCPK:GLNCY) says it will shut its 68%-owned South African Optimum coal mine in a dispute with state-owned utility Eskom, placing the mine in the local equivalent of bankruptcy proceedings after Eskom said it was not willing to renegotiate a two-decade old supply agreement.
    • Optimum is contracted to supply Eskom with 5.5M tons/year of coal, and Glencore says it has been selling the coal to Eskom at significantly below the cost of production for several years.
    • Eskom, which is battling a power crisis, supplies more than 95% of South Africa’s electricity and is dependent on coal-fired power stations.
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  • Wed, Jul. 22, 9:52 AM
    • Glencore (OTCPK:GLCNF, OTCPK:GLNCY) says it will cut ~380 jobs at its Optimum Coal subsidiary in South Africa after the closure of some operations at the mine.
    • Glencore said in January it was planning to close some of its South African coal mines and laying off workers due to falling prices.
  • Thu, Jul. 2, 5:57 PM
    • Senior executives from Glencore (OTCPK:GLNCY, OTCPK:GLCNF) have met Iranian officials in Tehran ahead of a possible deal on its nuclear program, in the first sign commodity trading houses are positioning to help the country return to the international oil market, Financial Times reports.
    • Glencore’s visit follows discussions between European oil majors Shell and Eni and Iranian officials over long-term investments in the country’s oil and gas industry, but big oil traders may have a more immediate role to play.
    • Iran is “not going to sit on the sidelines” waiting for the results of talks in Vienna and it preparing to move the moment sanctions are lifted, and it will "explore all the strategies that are available to it to help it regain its share of the oil market and find new buyers for its crude," says IHS Energy's Jamie Webster.
  • Mon, Jun. 29, 5:23 PM
    • Rio Tinto (NYSE:RIO) is in serious talks with X2 Resources, the investment vehicle of former Xstrata boss Mick Davis, about a multibillion dollar sale of its thermal coal assets in Australia's New South Wales state, FT reports.
    • Such a sale would be the miner's largest divestment under CEO Sam Walsh and mark a substantial restructuring of Rio, ending its investments in the coal used in power stations.
    • Discussions could extend to include Rio’s metallurgical coal assets in Queensland, which yield a different grade of coal that is used in steelmaking.
    • A move by Davis for Rio’s thermal coal assets could be countered by Glencore (OTCPK:GLCNF, OTCPK:GLNCY), which owns several mines in the same region and could afford to pay a higher price because of the potential to cut costs, the report says.
  • Wed, Jun. 24, 5:23 PM
    • Zambia’s government is set to roll back contentious mining taxes, cutting royalties for underground mines below the recently revised 9% and ending a nine-month standoff that has hurt production and profits in Africa’s second largest copper producer.
    • As of July 1, the government will revert to a 30% corporate tax - which many firms elude claiming they are not profitable - and reduced royalties of 9% on open pit mines and 6% on underground operations.
    • A return to lower levies should be a windfall for mining companies operating in the country, such as Barrick Gold (NYSE:ABX), Glencore (OTCPK:GLCNF, OTCPK:GLNCY) and First Quantum Mineral (OTCPK:FQVLF), Zambia’s largest foreign investor, all of which slowed operations as the taxation dispute raged.
    • Withheld value-added tax refunds, however, remains a point of contention, as major copper miners say they are owed nearly $800M in value-added tax refunds stretching back to 2013.
  • Thu, Jun. 18, 8:59 AM
    • Former Xstrata boss Mick Davis' X2 Resources is out of the race for a stake of up to 50% of Barrick Gold's (NYSE:ABX) Zaldivar copper mine in Chile after it was outbid in the first round of the sale process, Reuters reports.
    • Chilean copper miner Antofagasta (OTC:ANFGF) is said to be interested in Zaldivar, but it is not clear if it would be a second round bidder; others in the running likely include Glencore (OTCPK:GLCNF, OTCPK:GLNCY); Teck Resources (NYSE:TCK), possibly backed by a Chinese partner; HudBay Minerals (NYSE:HBM), also with a partner; and an unnamed Chinese miner,
    • Analysts have put a price tag of ~$1B on a 50% stake in the mine, which ABX put up for sale in April as it strives to cut $3B off its debt pile by year's end.
  • Fri, Jun. 12, 8:58 AM
    • Shares in Lonmin (OTC:LNMIF) fall 5% in London trading after Glencore (OTCPK:GLCNF, OTCPK:GLNCY) handed over its stake to its shareholders this week, highlighting investor concern over South Africa's platinum sector.
    • Glencore had inherited a 23.9% stake in Lonmin through its 2013 purchase of Xstrata but announced in February its intention to distribute the shares to investors; analysts had expected some selling pressure on Lonmin, anticipating many investors in Glencore, a diversified commodity player, would ditch the Lonmin shares because they were unwilling to bet on platinum.
    • Platinum has lost ~43% of its value from a 2011 peak of more than $1,900/oz. and its outlook remains cloudy.
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  • Thu, Jun. 4, 8:57 AM
    • Glencore (OTCPK:GLCNF, OTCPK:GLNCY) may further cut its coal production to help reduce the market glut that has pushed prices to multi-year lows, and that the “responsible” decision is to prune output at a time of oversupply, says the miner's head of global coal assets Peter Freyberg.
    • Coal is "a very, very important part" of the company, Freyberg says, acknowledging tough market conditions but expressing optimism for the long term; China's appetite for coal may be waning, but demand from countries such as India is on the rise, he says.
    • Freyberg also strikes back at coal critics, saying coal is not going to be “wished away... It is being used and it is going to be used, because building coal-fired power is still the cheapest way of powering people out of poverty."
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  • Wed, May 27, 8:15 AM
    • Top global iron ore miners BHP Billiton (NYSE:BHP), Rio Tinto (NYSE:RIO) and Vale (NYSE:VALE) are right to move forward with expansions into an oversupplied market since supporting prices through production cuts would hurt efficiency and prove difficult to coordinate, Goldman Sachs says.
    • “First, production cuts would go against the prevailing trend of improving efficiency,” Goldman says. “Second, the required coordination among dominant producers with different incentives would be more difficult to achieve among three companies; successful cartels in oil and potash have featured only one or two dominant producers.”
    • Glencore (OTCPK:GLCNF, OTCPK:GLNCY) CEO Ivan Glasenberg, among others, has said that oversupplying markets regardless of demand was damaging the industry’s credibility.
    • Goldman expects the iron ore "war of attrition" will continue while prices gradually decline toward its $40/metric ton forecast by 2017.
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Company Description
Glencore Xstrata is one of the worlds largest global diversified natural resource companies and is one of the ten biggest companies within the FTSE 100 Index. The Groups industrial and marketing activities are supported by a global network of more than 90 offices located in over 50 countries.