|Bid||230.95 x 0|
|Ask||230.90 x 0|
|Day's Range||229.65 - 233.75|
|52 Week Range||188.23 - 2,334.50|
|Beta (5Y Monthly)||N/A|
|PE Ratio (TTM)||37.19|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||N/A|
UK investigators are adding to the legal woes of Glencore - one of the world's biggest commodity traders - with an announcement that Britain's Serious Fraud Office has launched a probe over suspicions of bribery. Glencore is already subject to a U.S. Department of Justice inquiry in connection with corruption in the Democratic Republic of Congo, Venezuela, and Nigeria. Britain's SFO is also looking, it said, at the conduct of Glencore businesses, its officials, employees, agents, and associated persons, but did not comment further. The British-Swiss firm - which has operations in over 150 countries - said it would cooperate. Its shares took the news badly - losing around 7% of their value by mid-afternoon trading. This year, they're down more than 20%.
Argentina's top exporter of processed soy, Vicentin, is in talks over a potential takeover deal with firms including European grains giant Glencore to help resolve a debt crisis, according to two sources close to the negotiations. The near 90-year-old firm, which defaulted on payments to suppliers late last year, has also told grains farmers it owes money to that it will make a debt restructuring offer in the days ahead, the sources said on Friday. The discussions over a deal come after Vicentin was forced to sell part of its stake in a joint venture with Glencore in December, when spending on expansion caught up with the firm amid a widening economic crisis in Argentina.
LONDON/JOHANNESBURG (Reuters) - Talks to salvage a tentative $1.7 billion (£1.3 billion) debt restructuring between Congo Republic and energy traders Glencore and Trafigura [TRAFGF.UL] are stuck, sources said, jeopardising an International Monetary Fund bailout for the debt-hobbled nation.
Joint venture partners Glencore and Merafe Resources could cut up to 665 jobs at their Rustenburg ferrochrome smelter in South Africa because of problems including power cuts and rising electricity tariffs. The potential job cuts highlight the risks posed to Africa's most industrialised economy by struggling state power utility Eskom, which is battling breakdowns at its creaking coal-fired power plants and is mired in a financial crisis. Merafe said in a statement on Monday that it had started consultations with workers.
(Bloomberg Opinion) -- BlackRock Inc., the world’s largest asset manager, says it will cut exposure to companies linked to thermal coal, among other climate-friendly measures. It’s a powerful signal. Unfortunately, it only scratches the surface. If BlackRock CEO Larry Fink is serious about helping to eliminate coal while reshaping finance, his outfit can use its holdings of sovereign debt to tackle governments, too.Coal power generation has fallen steeply in Europe and the U.S. in the past year or so, thanks to cheap natural gas, higher carbon prices and green pressure. Yet in Asia, once you iron out some local peculiarities, demand for the black stuff remains remarkably resilient. That suggests that even if global appetite peaks soon, as most analysts estimate, it could well remain at high levels for years to come. Analysts at UBS Group AG estimated last July that on current trends the last coal-fired power station may close only in 2079. To blame are the likes of China, India and Vietnam. Their fleet is young, still growing and often state-backed; Western money managers selling out of public securities won’t change that. There is good news. BlackRock is an investment giant, with $7.4 trillion of assets under management, so Fink’s call to arms last week marks a significant move. Cutting off funds for coal producers and driving up their cost of capital is key to suffocating a sector that is the single largest cause of increased global temperatures.BlackRock’s strategic shift is also driven by self-interest. That’s encouraging, as such initiatives tend to outlast moral outrage. Heat from activists, like the BlackRock’s Big Problem campaign, helped, but Fink argues he is making sustainability the new standard because it makes financial sense. The surge of inflows into the firm’s environmentally friendly funds last week will encourage that view.The devil, as ever, is in the detail. BlackRock’s aim to divest thermal coal equity and debt will apply to its actively managed funds. Yet those amount to only under a third of the money it manages. As worrying is the threshold to be used to determine what has to go: The fund manager will sell out of any company where 25% of revenue or more is derived from thermal coal. That gets at narrowly focused producers like Australia’s Whitehaven Coal Ltd., but leaves untouched stakes in diversified heavyweights, like BlackRock’s 6% holding in Glencore Plc, the world’s top producer of seaborne thermal coal, or other sprawling conglomerates. It also tackles primarily miners, not utilities that consume the fuel.It’s possible to aim higher: Axa SA last year vowed to reduce its exposure to the thermal coal industry to zero by 2040.The bigger problem is that while such moves are necessary, they aren’t sufficient. That’s firstly because of the haven offered by private markets. If a large investment fund divests a stock or bond, or pressures companies into selling out of coal projects, what next? BlackRock investors may feel better, but will global production reduce overall? Quite possibly not. Will the world be greener? Also, possibly not, if the pit is sold to owners out of the public eye. Arguably, it may become harder to monitor. That suggests a more effective pressure point is demand, and that means tackling governments and state-backed firms still funding and supporting the fuel. Indeed, real impact will require a change in policy in Asian markets like Vietnam where coal is still a major employer and seen as a driver of economic growth. As a major investor in sovereign debt, even if much of it is in passive funds, BlackRock has enough leverage for meaningful dialogue at least.The challenge is significant. Consider China, which wants to reduce its reliance on coal. At least 200 million tons of coal capacity were ready to start production in 2019, while another 409 million tons of government-approved capacity are under construction, according to Bloomberg Intelligence numbers published last September. Together, that’s almost a quarter of China's up-and-running thermal coal capacity. In Indonesia, coal consumption may grow at the world’s fastest pace. Earlier this month, Jakarta ordered coal miners to slash production after record output last year. Prices immediately turned higher.Policy, then, is the lever to significantly reduce coal use in the region where it’s still growing: Asia. Go back to the UBS numbers. On current trends, the last coal-fired power station closes in six decades. But a red alert scenario where leaders accelerate closures would shutter the last plant in 2058, according to the bank, closer to the 2050 target set by the Intergovernmental Panel on Climate Change.Indonesia’s tussle with JPMorgan Chase & Co. in 2017 — when Jakarta temporarily severed business ties over a negative research report — is a reminder of just how much emerging market governments care about perception. BlackRock can make that count. To contact the author of this story: Clara Ferreira Marques at email@example.comTo contact the editor responsible for this story: Matthew Brooker at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of Bloomberg LP and its owners.Clara Ferreira Marques is a Bloomberg Opinion columnist covering commodities and environmental, social and governance issues. Previously, she was an associate editor for Reuters Breakingviews, and editor and correspondent for Reuters in Singapore, India, the U.K., Italy and Russia.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg) -- Glencore Plc is negotiating a long-term contract to ship cobalt to Tesla Inc.’s new electric-vehicle factory in Shanghai, according to people familiar with the matter.A deal would help Tesla avoid a supply squeeze on the key battery metal as it pushes into the world’s largest car market, and mark a win for Glencore after a tough spell for its cobalt business.Executives from both companies hammered out terms of the deal before an official ceremony to mark the first sales from the Shanghai plant earlier this month, said one of the people, who asked not to be identified discussing commercial negotiations. They declined to give details about the size and value of the supply deal.A Glencore spokesman declined to comment, while a representative for Tesla didn’t immediately respond to a request for comment.The contract will help Tesla shore up its cobalt supply as it ramps up output at the so-called Gigafactory, which was built in just 11 months with significant support from the Chinese government. The opening of the plant has helped propel Tesla’s shares to record highs, as investors turn bullish on Elon Musk’s ambitions of transforming the company into a global mass-market automaker.While there is enough cobalt supply for now, demand is expected to surge in the coming years as Tesla expands in China and Europe and Volkswagen AG to BMW AG roll out fleets of electric vehicles. Warnings about long-term shortages caused cobalt prices to spike in 2017 and 2018, prompting Musk to work on reducing Tesla’s reliance on the metal. Even so, the deal signals that the metal will remain key to the company’s expansion over the next few years.Despite a torrid year for the car industry, the burgeoning electric-vehicle market offers big opportunities for manufacturers and the companies that supply them. The biggest miners are looking to grow production of metals such as copper and nickel that are needed for the electrification of cities and cars.Glencore, the world’s largest cobalt miner, is in a prime position to benefit from a boom in electric-vehicle sales. But so far, it’s struggled to make that happen. The company booked losses last year related to cobalt after prices collapsed in mid-2018 from too much supply.Read more: Cobalt’s Star Fades for Glencore Traders as Customers RenegeAfter customers reneged on contracts in response to the slump, Glencore spent last year locking in new long-term deals with customers throughout the electric-vehicle supply chain. BMW has signed up to buy cobalt from its mines in Australia, while battery materials suppliers GEM Co. and Umicore SA have also inked contracts.Direct deals with miners are rare in the automotive industry, and the agreements between Glencore, Tesla and BMW are a sign carmakers are concerned about securing sufficient cobalt from ethical sources. Nearly three-quarters of the world’s cobalt comes from the Democratic Republic of Congo, and as much of 20% of the country’s output is produced at informal makeshift mines where fatalities and human-rights abuses are commonplace.A lack of liquidity in exchange-traded cobalt contracts also means buyers have little opportunity to hedge against wild price swings. As a result, the industry is moving toward long-term strategic tie-ups to allow battery-chemical makers and cell manufacturers to pass along price risks as cobalt moves through their supply chain, according to George Heppel, an analyst at CRU Group.“You have to be able to pass on those costs,” Heppel said by phone. “It would be impossible for a battery manufacturer to sign a long-term deal with a customer without some clause to vary their prices based on raw material costs.”(Updates with background on cobalt from sixth paragraph.)\--With assistance from Christoph Rauwald.To contact the reporters on this story: Mark Burton in London at email@example.com;Thomas Biesheuvel in London at firstname.lastname@example.orgTo contact the editors responsible for this story: Lynn Thomasson at email@example.com, Nicholas Larkin, Dylan GriffithsFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg) -- BlackRock Inc. will cut exposure to thermal coal as the world’s largest asset manager moves to address climate change, but that doesn’t mean it’s selling out of the biggest producers -- including top shipper Glencore Plc.Producers of the dirtiest fuel are coming under increasing pressure from money managers to either abandon the business or show plans for an eventual exit. What investors don’t agree on, is how to measure progress and whether companies are complying.BlackRock’s discretionary active investment portfolios will sell out of all companies that get more than 25% of sales from thermal coal, Chief Executive Officer Larry Fink wrote in a letter to clients that outlined a plan to put climate considerations at the center of its strategy. There isn’t a long-term economic or investment rationale for continuing to invest in the fuel, he said.Read more: BlackRock Puts Climate at Center of $7 Trillion StrategyHowever, the revenue threshold means that large, diversified miners -- which also rank among the largest coal producers -- won’t be affected. Glencore, of which BlackRock owns 6%, is the single biggest coal shipper, mining about 130 million tons last year. Yet its thermal coal revenues accounted for less than 10% of the total, thanks to the contribution from its giant trading operations.Major coal producers Anglo American Plc and BHP Group also comfortably escape the cap.Blackrock’s approach contrasts with Norway’s $1 trillion sovereign wealth fund, which said last year it would stop investing in companies that mine more than 20 million tons a year of thermal coal. Glencore, Anglo and BHP all fall foul of that requirement.The pressure on mining companies is showing results. BHP is looking at options to exit its remaining coal mines in Colombia and Australia, while Anglo is also looking to retreat. Even Glencore, an ardent defender of the fuel, has said it will limit its output after pressure from Climate Action 100+, a group BlackRock has now joined.Still, many argue that targeting coal suppliers will have limited effect because western companies will simply sell their mines to others who will continue to operate them for years as long as demand holds up.Last year, Glencore’s billionaire CEO, Ivan Glasenberg, said coal had an essential role in providing affordable and reliable power in developing countries. If environmentalists keep pressuring companies to stop producing coal, there won’t be enough for the economies that need it, he saidTo contact the reporter on this story: Thomas Biesheuvel in London at firstname.lastname@example.orgTo contact the editors responsible for this story: Lynn Thomasson at email@example.com, Liezel Hill, Dylan GriffithsFor more articles like this, please visit us at bloomberg.com©2020 Bloomberg L.P.
(Bloomberg Opinion) -- In 2018, Glencore Plc incurred $24 million of legal and other costs in relation to a U.S. Department of Justice investigation into its compliance with bribery and money-laundering rules when doing business in the Democratic Republic of Congo and elsewhere. The miner-cum-commodities trader spent another $45 million consulting lawyers and experts about the various ongoing investigations in the first six months of this year, its accounts show.So news that the U.K’s Serious Fraud Office has also opened an investigation into suspicions of bribery is probably bullish for the London and Swiss legal community (the mining giant is listed in the former and based in the latter). For Glencore shareholders, however, it’s a bitter reminder that the globe-spanning group can’t easily move on from its legal troubles; the shares slumped 8% on Thursday to a three-year low.Earlier this week Glencore’s 62-year-old chief executive officer Ivan Glasenberg hinted that his almost 18-year tenure was drawing to a close. After a succession of senior departures, he’s one of the last top managers remaining from the company’s pre-initial public offering vintage.He also committed this week to further cutting Glencore’s ratio of net indebtedness to Ebitda (a measure of cash earnings). In that respect, Glencore is a less risky proposition than it was in 2015, when its shares collapsed because of leverage worries. As such, it can withstand the legal uncertainty around some of its alleged previous activities. Even allowing for heavy investments, the company thinks it can generate about $4.4 billion of free cash flow next year if commodity prices remain the same. It’s promising a dividend of at least 20 cents — a pretty decent yield of 7%.Nevertheless, even if Glasenberg makes way for a new generation, his successors will probably remain bogged down by many of the same problems.Glencore hasn’t made a provision in its accounts for its legal woes because it’s unable to estimate the quantum of fines and legal damages that could arise. While Glencore says it will cooperate with the SFO probe, it didn’t provide further details. Absent better information, some investors will be inclined to worry.And then there is Glencore’s continuing commitment to thermal coal, despite overwhelming evidence that burning the stuff is contributing to a global climate crisis. This gives sustainability-minded investors another reason to avoid the shares. Thursday’s dramatic sell-off, following formal confirmation of an investigation some people thought was coming anyway, merely underscores the volatile nature of Glencore as an investment. Glasenberg’s departure wouldn’t change that.To contact the author of this story: Chris Bryant at firstname.lastname@example.orgTo contact the editor responsible for this story: James Boxell at email@example.comThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Chris Bryant is a Bloomberg Opinion columnist covering industrial companies. He previously worked for the Financial Times.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
The UK's Serious Fraud Office (SFO) has launched a bribery investigation into Glencore , adding to legal troubles that have hit the shares of one of the world's biggest miners and commodity traders. The SFO said on Thursday it had opened an investigaton into suspicions of bribery in the conduct of business by the Glencore group of companies, its officials, employees, agents and associated persons in June. The London-listed shares of Glencore, which has operations in over 150 countries, fell 9% to 216.9 pence, their lowest level in more than three years, knocking 2.6 billion pounds off the company's market value.
Investing.com -- Shares in Glencore (LON:GLEN), the world's biggest mining group, fell sharply on Thursday after it said the U.K.'s Serious Fraud Office (SFO) has opened an investigation into suspicions of bribery in its dealings.
South Korean battery maker SK Innovation has signed a six-year deal to buy up to 30,000 tonnes of cobalt from miner Glencore , allowing it produce batteries for 3 million electric vehicles. Hit by oversupply, cobalt prices have shrunk from $95,000 (74,045 pounds) per tonne in May 2018 to around $35,000 now. The slump has weighed on Glencore's share price and prompted the company to reduce output of the battery metal.
Glencore could announce a new chief executive next year once a new management team is in place, its current boss told an investor meeting on Tuesday as the commodities giant laid out its priorities for 2020. The mining and trading company faces a challenging year as it contends with problems on multiple fronts, from a series of mine fatalities and climate politics to a continuing U.S. Department of Justice investigation and difficulties in Democratic Republic of Congo. Speculation about Ivan Glasenberg's departure has intensified after he said last year that he expected to retire in between three and five years.
Glencore's Mutanda mine in Democratic Republic of Congo suspended operations prematurely on Monday due to a lack of sulphuric acid, a key input for copper and cobalt extraction. CEO Ivan Glasenberg decided in August to suspend Mutanda from the year-end, for an expected two years. The company's wholly-owned Mutanda Mining (MUMI) subsidiary notified employees of the suspension in a letter seen by Reuters, whose contents a Glencore spokesman confirmed.
The unit said the smelter, which started in 1966, had been 'uneconomic' since the Brunswick mine closed six years ago. "We have thoroughly assessed all our options and come to the unavoidable conclusion that the smelter is simply not sustainable, regardless of the recent labour dispute," said Chris Eskdale, Canadian unit's head of zinc and lead assets. Earlier on Wednesday, the United Steelworkers (USW) union claimed that over half of the smelter's employees, fighting to improve health and safety standards, were locked out since April 24.