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.
Friday, Mar 78:13 AM
Friday, Mar 78:13 AM| 5 Comments
- Freeport McMoRan (FCX) says power rationing in the Democratic Republic of Congo will not affect its operations in the short term but a reliable energy supply would be crucial for any future expansion plans.
- The Democratic Republic of Congo, Africa’s biggest copper producer, has told miners it will institute an electricity rationing program and its state-owned power company will stop signing new contracts.
- Glencore Xstrata’s (GLCNF, GLNCY) Mutanda and Katanga mining projects and FCX's Tenke Fungurume mine are Congo’s top copper producers; Katanga is scheduled to expand production to almost 300K metric tons by year-end, and Tenke plans to add a second sulfuric acid plant by 2016.
Tuesday, Mar 48:12 AM
Tuesday, Mar 48:12 AM| 2 Comments
- Glencore Xstrata (GLCNF, GLNCY) is poised to take an equity stake this year in Russian oil company Rosneft (RNFTF) under the terms of a renegotiated loan agreement.
- Glencore says Rosneft has refinanced part of its debt and repaid $1B in December, and the two companies agree to amend the terms of the remaining loan so that it would convert at least $900M into an equity stake in Rosneft during 2014.
- Also says it will study the sale of BHP Billiton’s Australian nickel assets; BHP has booked impairment charges on the Nickel West assets of nearly $1.6B over the past two fiscal years.
- Shares +2.5% in London after the company beat analysts’ earnings estimates in its first annual results since the Xstrata takeover.
Tuesday, Mar 43:46 AM
Tuesday, Mar 43:46 AM| Comment!
- Glencore Xstrata's (GLNCY) FY adjusted EBIT climbed 34% to $5.97B, boosted by the inclusion of eight months of Xstrata's profits and a strong performance at the company's commodities trading operations.
- Adjusted net income rose 20% to $3.67B but missed consensus of $3.81B.
- However, Glencore Xstrata swung to an overall net loss of $7.4B from a net profit of $1B in 2012, due to a $7.5B writedown that the company booked on the Xstrata deal. Still, the firm expects to achieve $2.4B of annual synergies from the purchase, up from a prior forecast of $2B.
- Glencore Xstrata is continuing its talks with a Chinese suitor to sell its $5.9B Las Bambas copper asset in Peru. A group led by China Minmetals was reportedly close to a deal last month.
- Glencore Xstrata is selling the asset in order to meet Chinese conditions for approving the Xstrata transaction.
- Glencore increased its full-year dividend 4.8% to 16.5 cents a share.
- Shares are +2.4% in London. (PR)
Monday, Mar 36:14 PM
Monday, Mar 36:14 PM| Comment!
- Vale's (VALE) Canadian unit says it has resumed work on its Copper Cliff Deep nickel project in the Sudbury basin after development was put on hold in the wake of the 2008 financial crisis, and it expects to complete a feasibility study by the end of the year.
- The project is expected to cost ~$1B and could be one of the unit's lower-cost operations; the first of the three phases could start producing within the next two to three years, but a final go-ahead will depend on securing a green light from Vale's board in Brazil.
- At the same time, the miner plays down expectations that it would reach a deal early this year with Glencore Xstrata (GLCNF, GLNCY) to merge their adjacent Canadian nickel projects.
Wednesday, Feb 268:41 AM
Wednesday, Feb 268:41 AM| Comment!
- The UN is sending extra troops to the copper producing Katanga province in Congo in an attempt to quell a growing insurgency that has threatened the province's mining sector.
- Congo's copper production hit a record high of 900K metric tons last year, but recent violence is threatening the industry, where such companies as Freeport McMoRan (FCX), Glencore Xstrata (GLCNF, GLNCY) and Ivanplats are operating multibillion-dollar copper and cobalt mines.
- Katanga is believed to hold at least 10% of the world's copper deposits and a third of global cobalt deposits.
Monday, Feb 2411:13 AM
Monday, Feb 2411:13 AM| Comment!
- Talks between Glencore Xstrata (GLCNF, GLNCY) and the China Minmetals-led consortium over a potential purchase of the Las Bambas copper mine in Peru have hit a snag over the price the Chinese buyers are willing to pay, WSJ reports.
- While a ~$5.5B deal for the giant copper mine reportedly isn't dead, the deal has taken longer to conclude than expected and a March 4 internal deadline to announce the deal looks like it will be missed; Glencore had agreed to sell Las Bambas as a precondition for approval from Beijing for its merger with Xstrata last year.
- Las Bambas was about 45% complete as of the middle of last year and is due to start production in H2 2015.
Wednesday, Feb 197:46 AM
Wednesday, Feb 197:46 AM| 2 Comments
- Royal Dutch Shell (RDS.A, RDS.B) reportedly has sold its downstream Australian assets to Dutch-owned oil trader Vitol and the Abu Dhabi Investment Council for ~$2.4B.
- Shell has been planning to sell the business, which includes a refinery, import terminals and 900 service stations, as part of new CEO Ben Van Beurden's worldwide divestment program.
- The sale would mean Australia's Macquarie Group and partner Glencore Xstrata (GLCNF], GLNCY) were not successful in their efforts to buy the assets.
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 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.
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