Tue, Jul. 26, 10:23 AM
- Three of the world's top five miners will need to step up asset sales in this year's H2 to meet a $14B full-year target as they race to cut debt, Reuters reports.
- Glencore (OTCPK:GLCNF, OTCPK:GLNCY), Anglo American (OTCPK:AAUKF, OTCPK:AAUKY) and Vale (NYSE:VALE) have $5.4B from asset sales, far short of their target, delaying efforts to reduce debt and improved their credit ratings.
- Asset sales lost steam amid the H1 rebound in commodity prices, as iron ore and coal prices rallied ~30% and copper prices rose ~7%, easing the sense of urgency for sellers while bidders waited for the rallies to fizzle, but most analysts and investors expect prices to fall during H2, as iron ore, coal and copper markets remain oversupplied.
- Vale, which hopes to sell up to $5B worth of assets this year, may come under more pressure as so far it has only fetched $269M from the sale of three iron ore carriers, while Glencore and Anglo appear to be more on track toward their respective goals of $4B-$5B and $3B in asset sales this year.
- BHP Billiton (NYSE:BHP) and Rio Tinto (NYSE:RIO) are considered well placed to buy assets, with interest in copper, but both have been surprised at the high prices that copper assets have fetched so far.
Mon, Jul. 25, 5:25 PM
- Glencore’s (OTCPK:GLCNF, OTCPK:GLNCY) stake in Russneft is set to be heavily diluted as oligarch founder Mikhail Gutseriev moves to restructure the Russian oil group's debt and reinforce his controlling position, Financial Times reports.
- Once Gutseriev completes the process of swapping $1B of debt owed to another of his companies into new shares in Russneft, his stake in the oil company will reach nearly 75% while Glencore’s will be cut to 25% plus one share, down from 46% at the start of the year.
Fri, Jul. 22, 8:58 AM
- Bidders for Anglo American’s (OTCPK:AAUKF, OTCPK:AAUKY) Australian metallurgical coal assets, including mines in Queensland that could fetch up to $1.5B, are in talks with banks for acquisition financing, Bloomberg reports.
- Coronado Coal and AMCI Capital are competing for Anglo’s Moranbah and Grosvenor mines with BHP Billiton (NYSE:BHP), which bid through its coal joint venture with Mitsubishi, according to the report, which adds that a group led by Glencore (OTCPK:GLCNF, OTCPK:GLNCY) has dropped out.
- Anglo CEO Mark Cutifani wants to raise $3B-$4B from asset sales to reduce debt and refocus the company as a miner of diamonds, platinum and copper.
Mon, Jul. 18, 12:59 PM
- Glencore (OTCPK:GLCNF, OTCPK:GLNCY) is downgraded to Neutral from Outperform at Credit Suisse, which says shares have topped out after nearly doubling YTD.
- The firm says the main reason for its gloomier outlook is copper, which accounts for ~40% of Glencore’s mining earnings, saying it "remain(s) negative on copper due to subdued demand and healthy mine supply growth, and we believe this will cap upside from here."
- While Glencore's successful delivery of its main earnings and debt reduction targets together with latent capacity growth in copper and zinc still provides upside potential over the medium term, the firm expects weak copper prices will lead to a slower than planned return of copper volumes.
Fri, Jul. 15, 8:49 AM
- Glencore (OTCPK:GLCNF, OTCPK:GLNCY) will supply 3.35M barrels of low sulfur crude to Indonesia's Pertamina in September after winning all the state-owned company's spot supply tenders, Reuters reports.
- Glencore reportedly dominated crude sales to Indonesia in September, beating out other sellers such as Royal Dutch Shell (RDS.A, RDS.B) and Vitol.
- Indonesia is southeast Asia's largest buyer of sweet crude, making spot purchases of more than 3M barrels every month.
Wed, Jul. 6, 9:44 AM
- China’s state-backed Silk Road Fund is considering a joint bid with China National Gold Group for Glencore’s (OTCPK:GLCNF, OTCPK:GLNCY) Vasilkovskoye gold mine in Kazakhstan, Bloomberg reports.
- The joint bid may compete with Chinese gold producers Shandong Gold Mining and Zijin Mining (OTCPK:ZIJMF) for the mine, which could fetch $2B, according to previous reports.
- The Vasilkovskoye mine produced ~380K oz. of gold last year.
Thu, Jun. 23, 10:04 AM
- BHP Billiton (BHP +2.9%) pulled a $500M debt refinancing plan earlier this month at one of Australia's biggest coal export terminals after banks were reluctant to lend to the coal sector, Reuters reports.
- The decision highlights the industry's difficulty in trying to attract financing from lenders wary of coal's commercial outlook, sets back efforts to simplify complex debt arrangements at the Newcastle Coal Infrastructure project, and stalls BHP's plan to release cash tied up in the terminal as it looks to strengthen ts balance sheet.
- Smaller coal miners are facing similar problems in trying to refinance another Australian coal port, the Wiggins Island Coal Export Terminal, where Glencore (OTCPK:GLCNF, OTCPK:GLNCY) is the main backer.
Thu, Jun. 9, 2:24 PM
- Glencore's (OTCPK:GLCNF, OTCPK:GLNCY) Vasilkovskoye gold mine in Kazakhstan has attracted bids from Chinese gold producers including Zijin Mining (OTCPK:ZIJMF) and Shandong Gold Mining, Bloomberg reports.
- Glencore, which put the mine up for sale earlier this year, may be seeking ~$2B for the asset, according to the report.
- Glencore has been selling assets and cutting costs as part of an effort to cut net debt to as low as $17B this year from ~$26B at the end of 2015; just yesterday, it agreed to sell a nearly 10% stake in its agriculture unit for $625M.
Wed, Jun. 8, 9:39 PM
- Glencore (OTCPK:GLCNF, OTCPK:GLNCY) agrees to sell a ~10% stake in its agricultural business to British Columbia Investment Management Corp for $625M, confirming an earlier report.
- Glencore Agri also will take on $3.6B in debt currently funded by Glencore, helping to pare debt on the parent's books; the debt would be financed without recourse to Glencore.
- The deal follows the company's sale of a 40% stake in Glencore Agri to Canada Pension Plan Investment Board for $2.5B in April, and will leave Glencore with a shade over 50% of the business.
Wed, Jun. 8, 3:37 PM
- Glencore (OTCPK:GLCNF, OTCPK:GLNCY) is in advanced talks to sell a nearly 10% stake in its agriculture unit to Canada’s British Columbia Investment Management Corp. for ~$600M excluding debt, Bloomberg reports.
- Glencore, which sold a 40% stake in the business to Canada Pension Plan Investment Board for $2.5B in April, may reach an agreement on the stake sale as early as this week, according to the report, which also says the company plans to retain majority control of the business.
- Glencore has been selling assets and cutting costs as part of an effort to trim net debt from the $25.9B at the end of last year.
Tue, Jun. 7, 11:12 AM
- BHP Billiton (BHP -0.9%) and Glencore (OTCPK:GLCNF, OTCPK:GLNCY) are among final bidders for Anglo American’s (OTCPK:AAUKF, OTCPK:AAUKY) Australian metallurgical coal assets that may fetch ~$1.5B, Bloomberg reports.
- Yanzhou Coal Mining (YZC +2.9%), Warburg Pincus-backed Anemka Resources and a pairing of Apollo Global Management and Xcoal Energy & Resources also submitted final bids for the Moranbah and Grosvenor mines, according to the report.
- Anglo has said it wants to raise $3B-$4B from asset sales to help reduce debt and refocus itself as a miner of diamonds, platinum and copper.
Mon, Jun. 6, 7:22 PM
- A U.S. district judge said today that two units of Glencore (OTCPK:GLCNF, OTCPK:GLNCY) must face a private antitrust lawsuit accusing them of trying to monopolize the market for special high grade zinc.
- Zinc purchasers have accused the Glencore units of having conspired since 2010 to ensure long waits for the metal at warehouses licensed by the LME, which they said enabled the defendants to receive increased storage fees and command increased premiums when selling zinc they owned, as part of a plan to artificially inflate prices.
- The judge said the zinc purchasers alleged "a plausible story of market control" by the Glencore units, Glencore Ltd. and Pacorini Metals USA, that violated the Sherman Act.
Fri, Jun. 3, 10:53 AM
- Glencore (OTCPK:GLCNF, OTCPK:GLNCY) is in talks with Iran's government about establishing a copper industry in Iran, according to the British newspaper The Times.
- Iran is seeking a 10x increase to its copper production by 2025 as part of its long-term economic plan, and has signed an deal with Glencore to help develop the industry, according to the head of Iran's state-owned mining development company.
- The report also says the government has held talks with mining rival Rio Tinto (NYSE:RIO).
Thu, Jun. 2, 10:03 AM
- Glencore (OTCPK:GLCNF, OTCPK:GLNCY) says it plans to close its Tahmoor underground coal mine in eastern Australia by 2019, due to the ongoing downturn in world coal prices.
- Glencore says it has begun consultation with 350 employees at the mine, which has been operating since 1979 and last year produced 2.1M metric tons of metallurgical coal used in steel making.
- Global prices for met coal have dropped from more than $300/metric ton in 2011 to ~$94 in step with weakening steel prices.
Fri, May 20, 11:58 AM
- Glencore (OTCPK:GLCNF, OTCPK:GLNCY) shareholders vote overwhelmingly for the company to provide more information on risks to its business from climate change.
- A growing number of investors and regulators are considering whether untapped deposits of oil, gas and coal around the world will be stranded as countries seek to curb climate change; Glencore is the largest exporter of thermal coal, with interests in ~30 operating coal mines in Australia, South Africa and Colombia.
- While supporting the resolution, Glencore Chairman Tony Hayward says "Coal remains the energy of choice for the emerging world and there is a reason for that. It’s cheap and readily available. It’s lifted billions of people out of poverty and will continue to do so."
Thu, May 12, 2:57 PM
- Glencore (OTCPK:GLCNF, OTCPK:GLNCY) and Vitol, the world's two largest independent oil traders, are close to signing long-term deals to purchase Iranian crude, according to a top Iranian official.
- A key issue still to be settled is that Iran's state-owned oil company wants to choose the destination of the crude it sells Glencore and Vitol, a request that is not unusual for Iran or many other countries.
- The potential deal would mark the return of two of Iran's biggest oil trading partners before sanctions over the country's nuclear program were tightened in 2012.
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.
Sector: Basic Materials
Industry: Oil & Gas Drilling & Exploration
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