Glencore PlcOTCPK - Current
Tue, Oct. 25, 12:46 PM
- Total (TOT -0.6%), Glencore (OTCPK:GLCNF, OTCPK:GLNCY) and Guvnor are bidding for a 75% stake in Chevron's (CVX +0.2%) South African downstream assets, which include a 110K bbl/day refinery in Cape Town, Reuters reports.
- Round two of the bidding in which actual offers were made closed on Sept. 30, with a selling price estimated at $1B expected for the assets in South Africa as well as neighboring Botswana, according to the report.
- CVX also has interests in a lubricants plant in Durban on the east coast, and its network of Caltex service stations makes it one of South Africa's top five petroleum brands.
Tue, Oct. 25, 11:21 AM
- Glencore (OTCPK:GLCNF, OTCPK:GLNCY) and Japanese power utilities reportedly have settled quarterly thermal coal contract prices at $94.75/metric ton, up 48% from ~$64/metric ton in the prior quarter, reflecting a surge in spot prices.
- The recent price rally for thermal coal has been triggered by a Chinese government decision to cap its mining output to address labor issues and pollution, forcing its utilities to import more coal; the intervention cut China's mining output by ~15% and sent buyers to global markets to meet the shortfall.
- Glencore is the world's biggest supplier of sea-traded thermal coal and typically sets pricing for the sector.
Thu, Oct. 20, 3:25 AM
- Glencore (OTCPK:GLCNF) has agreed to sell its Australian coal haulage business GRail to Genesee & Wyoming (NYSE:GWR) for A$1.14B ($874M).
- The deal takes Glencore's asset sales to $4.7B in 2016 and puts the mining and trading giant on course to reduce its net debt to $16.5-17.5B by the end of the year.
- For its part, Genesee & Wyoming plans to sell 49% of GRail to funds managed by Macquarie Infrastructure & Real Assets (OTC:MCQEF).
- Still, the purchase will double the size of Genesee & Wyoming's Australian operations and is expected to boost its EBITDA by A$100M in 2017.
Tue, Oct. 18, 3:23 PM
- Glencore (OTCPK:GLCNF, OTCPK:GLNCY) says it has raised the size of a bond buyback tender to $1.49B from $1.25B, as it tries to capitalize on favorable conditions to reduce its debt burden.
- Industry sources say Glencore's move will reduce the amount of debt maturing each year.
- Big miners are in a stronger position after racking up high levels of debt last year because of the commodity price crash, but likely will remain cautious and use the bond market only to strengthen their balance sheets and eventually increase dividends rather than embark on aggressive expansion plans.
Thu, Oct. 13, 12:18 PM
- Iron ore heavyweights Rio Tinto (RIO -3.4%) and BHP Billiton (BHP -3.5%) are sharply lower following the news that Chinese exports fell by a more than expected 10% and imports dropped by a more than anticipated 1.9%.
- Also down substantially are the likes of Freeport McMoRan (FCX -6.5%), U.S. Steel (X -5.7%), Teck Resources (TCK -5.4%), Cliffs Natural Resources (CLF -5%), Anglo American (OTCPK:AAUKF, OTCPK:AAUKY) and Glencore (OTCPK:GLCNF, OTCPK:GLNCY).
- Also, Rio and BHP are downgraded to Sell from Neutral at Citigroup, which cites the impact of slack China commodities demand after the country's monetary stimulus and supply restrictions have driven a surge in bulk prices in 2016.
Wed, Oct. 12, 10:23 AM
- Oil trading companies think any OPEC deal to cut production will not result in a substantial reduction in actual supplies, which means the oil market is unlikely to rebalance until well into 2017, Reuters reports.
- Though the crude price has stabilized at ~$50/bbl since news of the output deal on Sept. 28, rising production from Libya and Nigeria casts doubt over the agreement's effectiveness, the heads of trading firms Gunvor and BB Energy say.
- Also, any agreed reduction will not affect actual supplies until next year, because the Nov. 30 OPEC meeting to set supply policy will be too late to adjust cargo loading dates before 2017.
- Glencore's (OTCPK:GLCNF, OTCPK:GLNCY) head of oil, Alex Beard, also is skeptical, saying "We need to see the real deal in November rather than the talk of the idea of doing a deal."
- ETFs: USO, OIL, UWTI, UCO, DWTI, SCO, BNO, DBO, DTO, USL, DNO, OLO, SZO, OLEM
Tue, Oct. 4, 5:13 AM| Tue, Oct. 4, 5:13 AM
Mon, Oct. 3, 12:58 PM
- Fortescue Metals (OTCQX:FSUMF) CEO Nev Power dismisses concerns about oversupply in the iron ore market, taking the view that a prolonged commodity crash is finally giving way to a cyclical upturn.
- "There is stability in demand in China, and most of the new large volume supply has already come on to the market," Power tells Financial Times, adding that some forecasters are overestimating the speed at which new supply would materialize.
- The CEO says long-term iron ore demand and price would be determined by Chinese economic policy and the rate of growth in emerging economies across Asia, and that “the demand side will be much more important than new supply.”
- Relevant tickers: VALE, BHP, RIO, CLF, OTCPK:GLCNF, OTCPK:GLNCY, OTCPK:AAUKF, OTCPK:AAUKY
Fri, Sep. 30, 12:23 PM
- Glencore (OTCPK:GLCNF, OTCPK:GLNCY) says it is reviewing allegations by U.S. prosecutors that a key business partner in the Democratic Republic of Congo bribed government officials for years.
- The allegations surfaced yesterday when the U.S. Department of Justice and SEC fined Och-Ziff Capital Management more than $400M to settle an investigation that it committed bribery violations in Africa.
- Prosecutors said OZM went into business with Israeli billionaire Dan Gertler despite warnings that he used political connections in Africa to defeat competitors and win cut-rate mining deals.
- None of the allegations relate to projects involving Glencore, and the company has not been accused of any wrongdoing.
Thu, Sep. 29, 5:29 PM
- Glencore's (OTCPK:GLCNF, OTCPK:GLNCY) Chemoil bunker fuel unit agrees to pay a $27M civil penalty, the highest ever in such a case, and retire ~65M renewable fuel credits, the U.S. Department of Justice says.
- The DoJ and EPA alleged that Chemoil exported at least 48.5M gallons of biodiesel from the U.S. during 2011-13 but failed to retire the associated RINs generated for the exported fuel.
- A New York-based products trader tells Reuters that the penalty likely will strengthen a rally in diesel prices, including ultra-low sulfur diesel futures.
Tue, Sep. 27, 8:50 AM
- China’s Shandong Gold has emerged as the lead bidder for Glencore’s (OTCPK:GLCNF, OTCPK:GLNCY) Vasilkovskoye gold mine in Kazakhstan, which may fetch ~$2B in a sale, Bloomberg reports.
- Glencore is still weighing all options for the asset, including a sale or streaming deal, according to the report.
- Glencore has been been selling assets and cutting costs as part of an effort to reduce debt to $16.5B by year-end, while Chinese mining deals have nearly tripled YTD to $27B compared with the same period last year.
Thu, Sep. 15, 12:47 PM
- Glencore (OTCPK:GLCNF, OTCPK:GLNCY) says it will have some short-term delays in its coking coal shipments from Queensland's Bowen basin in Australia after a train derailment over the weekend, which could further propel coal prices that have nearly doubled since early August.
- The freight operator says the derailment caused major infrastructure damage but expects service to resumed on Sept. 19.
- BHP Billiton (NYSE:BHP), which is among the coal miners operating in the Bowen region, says any impact on its operations would be reported in its next quarterly review.
- Prices for coking coal, used primarily to heat iron ore during steel making, already have more than doubled since the end of May, partly on large curtailments of China's supply.
Thu, Sep. 8, 12:17 PM
- Glencore (OTCPK:GLCNF, OTCPK:GLNCY) and Australia's Origin Energy (OTC:OGFGF) have put their Chilean hydropower business Energia Austral in Chile up for sale, Reuters reports.
- Energia Austral includes three hydropower projects with a capacity of 1K MW, with the Cuervo asset the biggest at 550 MW, making it the third-largest hydropower source in Chile.
- Energia Austral is 66% owned by Glencore and 34% owned by Origin; both companies are seeking to pay down debt.
Wed, Aug. 24, 7:40 AM
Wed, Aug. 24, 4:06 AM
- Glencore's (OTCPK:GLCNF) H1 adjusted net profit slumped two thirds to $300M and missed consensus of $318M.
- Adjusted underlying profit (EBITDA) fell 13% to $4B.
- Still, Glencore has cut debt to $23.6B by divesting assets and today said that it's agreed to sell future output from an Australian gold and copper mine for $670M to Evolution Mining (OTCPK:CAHPF).
- Glencore also set a new target of reduce debt to $16.5-17.5B by the end of year vs a previous aim of $17-18B.
- Shares are -2.6% in London. (PR)
Mon, Aug. 22, 11:25 AM
- Glencore’s (OTCPK:GLCNF, OTCPK:GLNCY) decision to cut zinc output to fight a rout in prices last year has been vindicated as the metal has rallied in 2016, Morgan Stanley analysts say, while also holding out the possibility that the company may order restarts.
- Zinc prices “may be supported/lifted, if China’s steel-production rate remains at around 800 million tons per year into 2017. Conversely, the most likely short-term price cap for zinc is the reactivation of Glencore’s dormant mining capability,” the firm says.
- Zinc has climbed 42% YTD as Glencore's Q2 zinc production fell 33% Y/Y, and Stanley still considers the metal its top pick among commodities.