Fri, Mar. 20, 11:26 AM
- Glencore (OTCPK:GLCNF, OTCPK:GLNCY) is one of the world’s largest traders of wheat that became a major agriculture player when it bought Canadian grain handler Viterra in 2012, but it still has no presence in the most important grain market of all: the U.S.
- That's enough for Bloomberg to start speculating that the company could become interested in targeting U.S. firms such as Andersons (ANDE +4.2%), which focuses on grains, ethanol and plant nutrients.
- "It may well make sense for the next deal to be in agriculture,” says the co-head of mining and metals investment banking at Barclays. “That’s how it works at Glencore, bolster your contribution to profitability and you’ll be provided with greater resources for growth."
Fri, Mar. 13, 4:58 PM
- Glencore (OTCPK:GLCNF, OTCPK:GLNCY) is ordered to pay ~$40M to OMV Petrom by a U.K. court for fraudulently shipping oil of a lower than purported quality to Romania in the 1990s.
- Marc Rich & Co., later to become Glencore, sold ~32 shipments to Romanian state firms during 1993-96 made up of cheaper crude blends than agreed, and falsified documents, profiting by ~$40M from the "deceit,” the judge says.
- The dispute has been the subject of two arbitration proceedings going back more than a decade; Petrom filed its U.K. lawsuit against Glencore in 2008.
Wed, Mar. 11, 10:43 AM
- Glencore (OTCPK:GLCNF, OTCPK:GLNCY) is near a deal to restructure its stake in RussNeft, one of Russia's 10 biggest oil companies, planning to convert assets it has in subsidiaries of Russneft into a 49% stake in the Russian firm's holding company.
- Glencore has been Russneft's partner since the Russian firm was founded in the early 2000s, and Russneft's debt to Glencore stands at up to $2B.
- No cash will change hands in the deal, which remains subject to approval from the Russian authorities.
Tue, Mar. 3, 8:45 AM
- The biggest takeaway from Glencore's (OTCPK:GLCNF, OTCPK:GLNCY) latest earnings report was that the miner is continuing to surprise with returns to shareholders despite a challenging commodity price environment.
- Glencore's 9% increase in annual dividend to $0.18/share follows a $1B share buyback program announced last year, of which $930M has been completed; CEO Ivan Glasenberg has said the company will return any excess cash to shareholders if it can’t find a way to generate a better return by reinvesting in the business.
- In the meantime, Glencore’s saving grace is its commodities trading division, where EBIT rose 18% Y/Y to $2.8B, helping offset a 23% drop in EBIT from its industrial activities to $3.9B; the slump in oil prices helped raise trading volumes and profit because future prices became higher than current prices, which led some energy companies to buy oil at current prices.
Tue, Mar. 3, 3:45 AM
- Glencore (OTCPK:GLNCY) posted full-year adjusted net income of $4.29B in 2014 vs. $4.58B a year earlier, beating analyst estimates, as strong performance in the company's marketing division helped it weather a sharp downturn in the commodities market.
- "While there remains the potential for future economic setbacks...physical demand for our raw materials remains healthy," announced CEO Ivan Glasenberg.
- The mining giant's income was heavily dented two years ago, after it took $11.4B in charges related to its merger with Xstrata.
Fri, Feb. 27, 7:53 AM
- Glencore (OTCPK:GLCNF, OTCPK:GLNCY) says it will cut production at its Australian coal mines by 15M metric tons and defer some expansion projects this year to tackle a global supply glut and weak prices.
- Glencore produced 60M tons of thermal coal in Australia and 9.5M tons of coking coal during 2014.
- Australia is the world's second largest exporter of thermal coal burned to generate electricity, behind Indonesia, and it is the biggest shipper of coking coal used to make steel.
- The decision by CEO Ivan Glasenberg to scale back coal production contrasts with decisions by BHP and Rio Tinto to push ahead with iron ore production.
Wed, Feb. 25, 2:45 AM
- Rio Tinto (NYSE:RIO) will not be taken over by rival Glencore (OTCPK:GLNCY) because there is no value in it for shareholders and regulators will never let it happen, announced Rio Tinto chief executive Sam Walsh.
- Rio snubbed a takeover approach from Glencore last August to create a $160B mining and trading giant, but Glencore never ruled out making a fresh attempt.
- Under U.K. rules, it could return with an offer from April onward.
- Previously: Glencore confirms it is no longer considering merger with Rio Tinto (Oct. 07 2014)
- Previously: Rio Tinto says it turned down Glencore merger idea in August (Oct. 06 2014)
Thu, Feb. 12, 11:59 AM
- Rio Tinto (RIO +2.3%) has no major M&A plans in the works, preferring to focus on building new mines rather than buying low-quality assets in the current market environment, CEO Sam Walsh says.
- The CEO says shareholders have asked whether Rio had any interest in deals, with some wondering whether the company might consider approaching Freeport McMoRan (NYSE:FCX) or Anglo American (OTCPK:AAUKF, OTCPK:AAUKY), but "we are not doing that," adding that shareholders had dismissed the idea that Rio would give Glencore (OTCPK:GLCNF, OTCPK:GLNCY) "any air at all" to consider a tie-up.
- Talks are still ongoing with the Mongolian government to settle all outstanding concerns about the development of the underground Oyu Tolgoi mine, Walsh says while indicating that Rio has not offered to increase its stake in the mine.
- Walsh also says Rio will not take part in any upcoming tender process for two blocks of the massive Simandou iron ore deposit in Guinea.
- Earlier: Rio Tinto's $2B buyback signals shift in strategy
Wed, Feb. 11, 2:38 PM
- Iron ore miners in the next few months will have the opportunity to bid for the northern half of the Simandou deposit, one of the world's most sought-after iron ore deposits, Guinea's mining minster tells WSJ.
- The official claims he is not concerned that weak iron ore prices will affect the bidding for the assets, saying it could be at least five years until the mines actually begin producing.
- The Simandou deposits are at the heart of an international legal dispute: Guinea last year stripped the rights to mine the deposit from Vale (NYSE:VALE) and the mining arm of Israeli tycoon Beny Steinmetz’s conglomerate, with the government alleging that the rights were obtained through corrupt practices.
- The blocks once were controlled by Rio Tinto (NYSE:RIO), but a previous government in Guinea revoked its rights to mine them; Rio is still helping to develop the southern part of the concession.
- Glencore (OTCPK:GLCNF, OTCPK:GLNCY) CEO Ivan Glasenberg has criticized the over-production of iron ore, but the company has held discussions with Guinean officials about mining rights in Simandou.
Wed, Feb. 11, 4:07 AM
- Hit by a rout in commodity prices, Glencore (OTCPK:GLNCY) has announced plans to divest its 23.9% holding in platinum producer Lonmin (OTCPK:LNMIY), by handing the stake to its own shareholders.
- Glencore also said it intends to cut capital expenditure this year in response to market volatility, slashing its target to between $6.5B-$6.8B from a previously expected $7.9B.
- GLNCY +0.4% AH
Wed, Feb. 4, 11:21 AM
- Zambia's newly elected president has directed the government to expedite talks with miners and promptly resolve the impasse over the new mining tax regime to ensure the smooth running of the mining industry.
- In January, the country began implementing a new tax regime, requiring open-pit mines to pay as much as a 20% royalty on their revenue, up from 6%, while underground mines would pay an 8% royalty, up from 6%.
- The plan prompted Barrick Gold (ABX +1.2%) to announce it would suspend operations at its Lumwana copper mine, which supports nearly 4K direct jobs in the area, and other miners such as Glencore (OTCPK:GLCNF, OTCPK:GLNCY) and First Quantum Minerals (OTCPK:FQVLF) to shelve expansion projects.
Wed, Jan. 28, 2:12 PM
- Glencore (OTCPK:GLCNF, OTCPK:GLNCY) says it may shut some of its South African coal operations amid slumping commodity prices.
- Glencore's Optimum Coal Mines unit says the closures would reduce its overall production of thermal coal by at least 5M metric tons/year and more than 1,000 employees could lose their jobs.
- The company says it will not close its underground coal mining operations and could reopen its opencast mines if conditions improve.
Wed, Jan. 21, 12:29 PM
- BHP Billiton's (NYSE:BHP) planned South32 spinoff may appeal to Glencore (OTCPK:GLCNF, OTCPK:GLNCY), Bloomberg speculates, because the newly formed company is taking shape near the bottom of the commodity cycle and it produces many of the same metals, including silver, manganese, aluminum.
- Glencore CEO Ivan Glasenberg is looking for undervalued acquisition targets, and his record as a relentless acquirer of assets makes him a potential buyer of South32, according to the report.
- Glencore’s market value has fallen more than 25% amid falling prices for metals and minerals, curbing Glasenberg’s prospects of a renewed deal with Rio Tinto, which some analysts say may make the cheaper South32 a more realistic option.
Wed, Jan. 14, 12:39 PM
- Citi cuts price targets for iron ore to $58 for 2015 and $62 for 2016, down from its prior estimates of $65 for both years, and lowers its outlook for thermal and met coal.
- Citi warns its downwardly revised forecast means it now expects earnings for major mining companies will fall by 9%-21% for 2015 and by 3%-16% in 2016.
- Rio Tinto (RIO -2.5%) is the exception, as Citi sees earnings rising 7.1% this year and 10.6% next year due to the company’s greater exposure to the weaker Australian dollar.
- The firm cuts its price target for Glencore (OTCPK:GLCNF -7.2%) by 8% to £3.60 from £3.90 and sees earnings falling 21% and 16% respectively in 2015 and 2016.
- Citi says it is still bullish on the sector, but warns that metals and mining companies will only slowly grind higher over the next few years.
- Also: BHP -4.5%, VALE -5%, FCX -12%, SCCO -4.9%, TCK -9.7%, CLF -4.4%, CENX -9.1%, MT -4.2%, X -4.9%, NUE -3.4%, STLD -2.6%, BTU -9.8%, ANR -8.8%, ACI -8.9%.
Wed, Jan. 14, 10:53 AM
- Glencore (OTCPK:GLCNF -6.9%) tumbles to its lowest levels since the company went public in 2011, falling more than 10% at one point before recovering slightly.
- Glencore has long underperformed most other major global miners, thanks to its model combining mining and physical trading of commodities, and continues to do so today.
- Analysts also say the steeper fall in copper prices compared with iron ore so far this year could thwart any potential move by Glencore to take over Rio Tinto (RIO -2.2%), as "Glencore's commodity mix hasn't played in its favor in the last few week,s and Rio is looking more expensive as a consequence."
- Copper accounted for 38% of Glencore's operating profit in H1 of last year compared with Rio, which only generated 10% of its operating profit from copper during the same period.
Wed, Jan. 14, 7:57 AM
- Mining stocks look headed for sizable losses, as copper prices sink to five-and-a-half year lows and the World Bank lowers its forecast for global economic growth.
- Glencore (OTCPK:GLCNF, OTCPK:GLNCY) -11.5% in London trading, Antofagasta (OTC:ANFGF) -7% in London, Anglo American (OTCPK:AAUKF, OTCPK:AAUKY) -9.5% in London, Vedanta (OTCPK:VDNRF) -18% in London, Rio Tinto (NYSE:RIO) -4.3% premarket in the U.S., VALE -2.9%, FCX -5.1%, CLF -2.6%.
- BHP Billiton (NYSE:BHP) -7.5% in London and -5.5% U.S. premarket after S&P Capital IQ downgraded shares to Hold from Buy, expecting "weaker commodity prices to increasingly impact on group profits as hedges expire and see currency headwinds from a stronger [U.S. dollar]."
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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.
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