at MarketWatch.com (Mar 17, 2014)
at MarketWatch.com (Mar 17, 2014)
at MarketWatch.com (Mar 14, 2014)
at MarketWatch.com (Mar 12, 2014)
at CNBC.com (Mar 10, 2014)
at MarketWatch.com (Mar 10, 2014)
at MarketWatch.com (Mar 10, 2014)
at MarketWatch.com (Mar 7, 2014)
at MarketWatch.com (Mar 4, 2014)
at MarketWatch.com (Mar 4, 2014)
at MarketWatch.com (Feb 25, 2014)
at MarketWatch.com (Feb 18, 2014)
at MarketWatch.com (Feb 17, 2014)
at MarketWatch.com (Feb 13, 2014)
at MarketWatch.com (Feb 12, 2014)
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.
Wednesday, Feb 1211:44 AM
Wednesday, Feb 1211:44 AM| 2 Comments
- Commodity trading houses Glencore (GLCNF, GLNCY) and Mercuria are expected to make final bids on Nigerian energy assets worth ~$3B that Royal Dutch Shell (RDS.A, RDS.B), Total (TOT) and Eni (E) are selling, Reuters reports.
- Shell is selling its 30% stake in four oil blocks, while TOT and E are set to sell respective 10% and 5% holdings; Shell also seeks to sell the 60-mile Nembe Creek oil pipeline, which has been regularly attacked by oil thieves.
- The blocks' combined output averaged 90K bbl/day of oil and 60M cf/day of gas in 2012 and they hold reserves of 4.6B boe, according to a Shell report seen by Reuters.
Tuesday, Feb 1110:57 AM
Tuesday, Feb 1110:57 AM| Comment!
- Glencore Xstrata (GLCNF, GLNCY) says its copper and coal output rose last year, while zinc production dropped.
- Among the major diversified miners, Glencore has the biggest exposure to copper; it produced 1.5M metric tons of mined copper from its own concentrate in 2013, up 26% Y/Y, mostly due to higher output from its African mines
- Zinc output, another large earnings driver, fell 9% Y/Y to 1.4M tons due to lower production from two Australian mines that reached the end of their lives; the company expects zinc production to return to growth in 2014.
- Coal rose 4% to 138M tons last year, driven by several expansion projects at the Colombian Prodeco mine.
- Citigroup says the output report was in line with its expectations, although realized coal prices were slightly lower than expected.
Thursday, Jan 162:08 PM
Thursday, Jan 162:08 PM| 1 Comment
- “We would rather be too early than too late," Citi analysts say on going bullish on the global mining sector for the first time in three years.
- Yes, Citi is concerned about the potential for long-term structural demand for commodities in China and the potential of a seasonal slowdown in Q1, but the firm foresees better bottom-up fundamentals, notably from big diversified miners such as top picks are BHP Billiton (BHP +2.6%), Rio Tinto (RIO +3.6%) and Glencore (GLCNF, GLNCY).
- The firm expects a flat commodity-price environment ahead and a reduction in volatility, improving U.S. and European growth that will help boost commodities, and weakening commodity currencies from major exporters such Australia, New Zealand and South Africa that will boost miners.
- Earnings momentum has become positive too, as miners are cutting costs, improving balance sheets and aligning with shareholders’ interests.
- Citi still doesn't like gold and base-metal stocks; its least favorite big-cap miner is Anglo American (AAUKF, AAUKY).
Wednesday, Jan 154:55 PM
Wednesday, Jan 154:55 PM| Comment!
- A Chinese consortium is the front-runner to buy Glencore Xstrata's (GLCNF, GLNCY) Las Bambas copper mine in Peru, WSJ reports, setting up a $5B-plus takeover that would be one of the largest foreign acquisitions by a Chinese company.
- A group comprising affiliates of state-controlled China Minmetals, Citic Group and Guoxin Group is the only bidder currently left in an auction Glencore had agreed to run to win China's approval for its takeover of Xstrata.
- Las Bambas, scheduled to start production in H2 2015, will be able to produce 450K metric tons/year of copper for the first five years and 300K during its remaining operating life, Glencore has said.
Friday, Dec 272013, 4:29 AM
Friday, Dec 272013, 4:29 AM| 15 Comments
- The WSJ shines a light onto "shadow warehouses," a hidden system of facilities that store tens of millions of tons of aluminum, copper, nickel and zinc across the globe for banks, hedge funds and commodity merchants.
- The warehouses operate outside the London Metal Exchange's system, are unregulated, and don't provide details of their holdings. As a result, it's unclear how much metal is held in the shadow system. This lack of visibility could cause major price swings.
- The WSJ article follows allegations that warehousing companies have artificially boosted the price of metals, particularly aluminum.
- Companies that operate metals warehouses include Goldman Sachs (GS), Glencore Xstrata (GLCNF) and JPMorgan (JPM), although the latter is looking to sell its commodities unit.
- Relevant tickers include VALE, AA, AWC, KALU, MNSF, CENX, NOR, BHP, RIO, ACH.
- ETFs: DBC, JJC, DBB, DJP, GSG, RJI, GCC, USCI, CFD, JJN, JJT, BOM, RGRC, CPER, CTF, RJZ, GSC, LSC, GSP, JJU, DEE, BDD, BOS, JJM, DYY, DDP, DJCI, LD, CMD, BCM, CUPM, UCI, RGRI, UCD, UBM, FOIL, BDG, LEDD, CMDT, SBV, USMI, DPU, NINI, FTGC, CSCB, CSCR, HEVY
Thursday, Dec 192013, 8:55 AM
Thursday, Dec 192013, 8:55 AM| Comment!
- Glencore (GLCNF, GLNCY) acquires the remaining 14.5% interest in Mutanda Mining Sarl held by High Grade Minerals for $430M, taking its stake to 69%.
- Mutanda is a high-grade copper and cobalt producer, with its operations located in the Congolese province of Katanga; as of October, its copper production rate was 190K tons/year.
Wednesday, Nov 272013, 7:18 AM
Wednesday, Nov 272013, 7:18 AM| 1 Comment
- Teck Resources (TCK), Newmont Mining (NEM), Blackstone (BX) and Magris Resources, a firm led by former Barrick CEO Aaron Regent, have joined together to bid for Glencore Xstrata's (GLCNF) Las Bambas copper mine in Peru.
- Initial bids for the project came it at $6B, with the next round due in December.
- The frontrunner has so far been China's Minmetals (MMETY), especially given the country's need for copper.
- Glencore Xstrata is selling Las Bambas as part of the conditions that China gave for approving Glencore's merger with Xstrata.
Monday, Nov 252013, 3:15 AM
Monday, Nov 252013, 3:15 AM| Comment!
- Voters in Switzerland - home to at least five of Europe's 20 best-paid CEOs - have rejected a proposal by a margin of around 2-1 to cap the salary of company bosses at 12 times that of their lowest-paid staff.
- Firms that would have been affected by a yes vote include UBS (UBS), Credit Suisse (CS), Roche (RHHBY), Novartis (NVS), ABB (ABB), Glencore Xstrata (GLCNF) and Nestle (NSRGY).
- The referendum came after the Swiss electorate approved a proposal in March to give shareholders a binding vote on the pay of senior managers.
- ETFs: EWL, FSZ
Wednesday, Nov 202013, 6:50 PM
Wednesday, Nov 202013, 6:50 PM| 28 Comments
- Coal (KOL) may become the new tobacco if activist investors have their way; growing numbers of them, concerned about greenhouse gas emissions, are calling to divest holdings in companies that mine and burn coal.
- The U.K. today joined a U.S. commitment to minimize funding of foreign coal-fired power stations and says it will seek wider support for the pledge from other nations and development banks.
- What galls the activists: Global demand for coal is not in retreat. In 2011, coal was used to generate 30.3% of the world’s primary energy, the highest level since 1969, and the share slipped only to 29.9% last year.
- Like tobacco companies, coal producers may move to paying high dividends to attract investors amid an uncertain longer term future for the fuel.
- BTU, ACI, BHP, RIO, GLCNF, GLNCY, AAUKF, AAUKY, PCXCQ.
Monday, Nov 112013, 12:24 PM
Monday, Nov 112013, 12:24 PM| Comment!
- JPMorgan Cazenove’s equity strategy team is recommending investors short big mining stocks, while its mining analysts defend some individual stocks, including BHP Billiton (BHP), Rio Tinto (RIO) and Glencore Xstrata (GLCNF, GLNCY).
- The strategists say past bear market rallies in the sector tended to last 4-5 months and deliver 30%-35% upside and that's where we are now, and miners typically show a strong correlation to the relative performance of emerging market stocks and Chinese stocks; after a brief rebounds, emerging markets and Chinese stocks have rolled over.
- The metals and mining team says its firmly held belief remains intact that diversified miners’ medium-term free cash flow improvement and de-leveraging is undervalued, though a short-term correction is possible.
Monday, Nov 112013, 7:58 AM
Monday, Nov 112013, 7:58 AM| Comment!
- Glencore Xstrata (GLCNF, GLNCY) says it suffered heavy structural damage at Pasar, the Philippines' sole copper smelter, after this weekend's supertyphoon ravaged the central part of Philippines and likely killed tens of thousands.
- Preliminary estimates indicates normal operations at the smelter won't be resumed for at least four to six weeks.
Friday, Nov 12013, 6:11 PM
Friday, Nov 12013, 6:11 PM| Comment!
- Shareholders be damned: Xstrata awarded some executives "transaction bonuses" last December to mark its takeover by Glencore (GLCNF, GLNCY), two weeks after shareholders rejected retention payments exceeding $200M.
- The payments came to light as part of a lawsuit involving a former Xstrata executive who was paid a transaction bonus of $783K but sued claiming he was owed a severance payment of ~$667K when he was forced to resign.
- Two weeks before the bonuses were awarded, Xstrata investors voted to block a plan to distribute £144M of retention payments to ~70 managers.
Friday, Nov 12013, 7:58 AM
Friday, Nov 12013, 7:58 AM| Comment!
- Glencore Xstrata (GLCNF, GLNCY) agrees to sell its majority stake in the Frieda River deposit in Papua New Guinea to Australian miner PanAust for as much as $125M.
- The transaction is the latest in a flurry of asset sales across the mining industry that suggests deals may be picking up as some commodities rebound; only 350 M&A deals occurred across the global mining sector in H1 2013, down 30% Y/Y, but the value of many commodities such as iron ore and copper, have rebounded.
Friday, Oct 252013, 5:29 AM
Friday, Oct 252013, 5:29 AM| Comment!
- Rio Tinto (RIO) is reportedly in advanced negotiations to sell its 50.1% holding in a coal mine in Australia to Glencore Xstrata (GLCNF; GLNCY) and Japan's Sumitomo (SSUMY; SSUMF) for around $1B.
- Glencore Xstrata and Sumitomo would each buy half of Rio's stake in the Clermont mine in the state of Queensland. The deal could be signed today.
- The sale is part of Rio's strategy of divesting assets as it looks to cut debt that reached almost $19B last year.
- Update: The sale is confirmed for $1.015B.
Friday, Oct 112013, 11:21 AM
Friday, Oct 112013, 11:21 AM| Comment!
- Glencore (GLCNF.PK) and Vale (VALE) have revived talks over a potential combination of their nickel operations in Canada's Sudbury basin, in an effort to cut costs amid weak prices for the metal, Reuters reports.
- Depending on the details of a potential deal, sources say a tie-up could mean substantial savings for both miners, if all or part of their mining, milling and even smelting operations are brought together.
- Analysts have long said a tie-up would make sense for the two operators, but the tough nickel market, pressure on Vale over nickel difficulties at its Goro nickel-cobalt mine in New Caledonia and elsewhere, may make a deal more likely than in the past.
Thursday, Oct 102013, 9:59 AM
Thursday, Oct 102013, 9:59 AM| Comment!
- Glencore Xstrata (GLCNF.PK) appears to be making headway in its effort to satisfy a Chinese regulatory requirement that it sell the Las Bambas copper project in Peru, as WSJ reports two of four Chinese companies that made initial bids for the mine were invited back for second bids.
- The $5.9B project is 43% complete and slated to start producing copper in H2 2015 at a rate of 450K metric tons/year for the first five years.
- If a Chinese bid for Las Bambas succeeds, the deal would be the country's biggest acquisition of an overseas copper asset.