Glencore's coal strategy, disappointing production guidance poorly received
Dec. 03, 2021 9:27 AM ETGlencore plc (GLCNF), GLNCYBy: Carl Surran, SA News Editor1 Comment
- Glencore (OTCPK:GLCNF, OTCPK:GLNCY) trades roughly flat after yesterday's investor day was poorly received, with the stock shedding ~4% due to a combination of excess expectations, more questions than answers, and an incrementally negative production guide, Bernstein analysts say.
- "Summary of the day was one much closer to business as usual versus radical change," the firm says, according to the Wall Street Journal.
- New CEO Gary Nagle, running his first investor day, defended the company's plan to close its coal mines over the next 30 years but said he would consider spinning off the business if it becomes a problem for major shareholders, according to the Financial Times.
- Nagle said the coal rundown plan had received 94% shareholder approval at its annual meeting.
- The CEO's comments come after Bluebell Capital Partners called on Glencore to divest the coal unit because it has become a barrier to investment.