Indigo Division
Glencore (OTCPK:GLCNF) is a commodity giant whose share price has more than halved since its early 2023 peak. The time has come to give it a fresh look and decide if the time has come to turn bullish.
Glencore: Rising Metallurgical Coal Production Should Support Share Price In 2025
Summary
- Switzerland-based Glencore is a major producer/trader of commodities. Due to higher margins, most of its profits come from the production units and more specifically, from copper and coal.
- The company has been increasing its exposure to metallurgical coal, and this move has so far proved to be beneficial.
- While trading earnings are broadly stable, production earnings are highly volatile, as they depend not only on output but also on sales price.
- Even if the average sales price for copper and coal falls 20% this year, Glencore's share price still looks relatively cheap when dividend and buyback are taken into consideration.
Trader of energy commodities for a living - 20 years of experience. Investor in equities since 1996. Strongly rely on analytical analysis for investment choices.
Analyst’s Disclosure:I/we have a beneficial long position in the shares of (LSE: GLEN) either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
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