GLEN.L - Glencore plc

LSE - LSE Delayed Price. Currency in GBp
243.20
+1.15 (+0.48%)
At close: 4:45PM GMT
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Previous Close242.05
Open245.00
Bid243.65 x 0
Ask243.70 x 0
Day's Range243.03 - 245.95
52 Week Range188.23 - 2,334.50
Volume20,244,508
Avg. Volume32,088,030
Market Cap32.405B
Beta (5Y Monthly)1.57
PE Ratio (TTM)39.23
EPS (TTM)6.20
Earnings DateFeb. 18, 2020
Forward Dividend & Yield0.16 (6.71%)
Ex-Dividend DateSep. 05, 2019
1y Target Est4.95
  • Tesla in Talks to Buy Glencore Cobalt for Shanghai Car Plant
    Bloomberg

    Tesla in Talks to Buy Glencore Cobalt for Shanghai Car Plant

    (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 mburton51@bloomberg.net;Thomas Biesheuvel in London at tbiesheuvel@bloomberg.netTo contact the editors responsible for this story: Lynn Thomasson at lthomasson@bloomberg.net, 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.

  • Big Coal Escapes BlackRock’s New Climate Plan
    Bloomberg

    Big Coal Escapes BlackRock’s New Climate Plan

    (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 tbiesheuvel@bloomberg.netTo contact the editors responsible for this story: Lynn Thomasson at lthomasson@bloomberg.net, Liezel Hill, Dylan GriffithsFor more articles like this, please visit us at bloomberg.com©2020 Bloomberg L.P.

  • The Hottest Market for Trading Houses Is the Coldest Fuel
    Bloomberg

    The Hottest Market for Trading Houses Is the Coldest Fuel

    (Bloomberg) -- The boom in liquefied natural gas is sending a clear signal that the fastest growing fossil fuel is no longer a sideshow for the biggest energy and commodity traders. At the same time, some utilities are exiting.Gunvor Group Ltd., the biggest independent trader of LNG, as well as Trafigura Group Pte Ltd. and Glencore Plc, all reported soaring volumes this year as they continue to diversify away from the pure oil trading that turned them into money machines bigger than some national economies.The firms are turning to natural gas, the cleanest fossil fuel, at a time when the focus on pollution and global warming is bigger than ever. New supplies from the U.S. to Russia and Australia sent prices to seasonal record lows, attracting new consumers. Contracts with more flexible terms and a nascent financial market are also boosting activity.“The increased activity from the trading houses demonstrates their long-term commitment to LNG,” Alex Lee, managing director at Connexus Global, a recruiter in Singapore, said by email. “They are determined to cement their position and drive the industry as it becomes more commoditized.”As a result, there’s been several deals over the past few months.And while trading companies expand from London to Singapore and beyond, some European utilities are leaving. Spain’s Iberdrola SA is getting out and Naturgy Energy Group SA may soon follow. Denmark’s Orsted A/S, which has transformed itself from an oil and gas company to the world’s biggest offshore wind producer, said on Wednesday it will sell its LNG activities to Glencore.The trading companies know better than most how to navigate the logistical challenges in a market where more than 500 tankers crisscross the oceans and sometimes change route to higher-priced destinations. That’s far from how the industry started about five decades ago with long-term contracts between producers and consumers.While most of commodity traders set up desks years ago to build the business for when the U.S. exports boom started in 2016, some companies such as Mercuria Energy Group Ltd. are just starting and “may grow rapidly as they seek to make an impact,” Lee said.“I would like to see more players come in as well, more independent players,” said Nathan Arentz, director of natural gas and LNG at Glencore. “Now is the time, this market looks very much like the oil market 20 to 30 years ago.”The trading companies expanded even as an almost 40% slump in the benchmark Asian price over the past year cut arbitrage opportunities between regions. Instead, they had to come up with new ways of making money that include cargo swaps, holding back on deliveries and trading oil-linked cargoes against spot tankers.China remained a key market even if purchases slowed from the previous couple of years. India, a price-sensitive buyer that switches from coal to gas when prices fall, has to some extent compensated for the drop in demand from China, the world’s biggest energy consumer.India was the biggest market for Gunvor this year, while Glencore also attributed its growth this year to a focus on south Asian nation. The world’s largest publicly listed commodity merchant was also the biggest spot trader in China. For Trafigura, more buyers lured by cheap LNG and the evolution toward shorter and more flexible contracts drove performance.As regional price differentials vanished, northwest Europe has been soaking up a lot more cargoes than usual. Imports will probably jump 70% to 82.5 million tons this year, according to Wood Mackenzie Ltd. That’s as much as biggest LNG importer Japan bought last year.While the independent traders are quickly seizing opportunities, they are still far behind some oil majors, including Royal Dutch Shell Plc, which sold 54 million tons in the first nine months of the year. Rosneft PJSC, Russia’s biggest oil producer, has so far been on the sidelines, but is planning to start a Geneva trading desk in the new year.“There are several participants actively looking to grow their international trading activities, and a quick way to achieve this is through M&A deals,” Lee said. “We anticipate more of such deals to come. Over the next two years we will see who is committed and who does not see LNG as a core activity.”(Updates with Glencore comment in ninth paragraph.)To contact the reporter on this story: Anna Shiryaevskaya in London at ashiryaevska@bloomberg.netTo contact the editors responsible for this story: Reed Landberg at landberg@bloomberg.net, Lars Paulsson, Andrew ReiersonFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • How Much Did Glencore plc's (LON:GLEN) CEO Pocket Last Year?
    Simply Wall St.

    How Much Did Glencore plc's (LON:GLEN) CEO Pocket Last Year?

    Ivan Glasenberg became the CEO of Glencore plc (LON:GLEN) in 2002. This analysis aims first to contrast CEO...

  • Glencore's Lawyers Get Set for Another Pay Day
    Bloomberg

    Glencore's Lawyers Get Set for Another Pay Day

    (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 cbryant32@bloomberg.netTo contact the editor responsible for this story: James Boxell at jboxell@bloomberg.netThis 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.

  • UK bribery investigation adds to Glencore's legal headaches
    Reuters

    UK bribery investigation adds to Glencore's legal headaches

    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

    NewsBreak: Glencore Plummets on New SFO Probe Report

    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 Korea's SK Innovation signs Glencore cobalt supply deal
    Reuters

    South Korea's SK Innovation signs Glencore cobalt supply deal

    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's Glasenberg says successor could be in place next year
    Reuters

    Glencore's Glasenberg says successor could be in place next year

    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 Congo shuts a month early
    Reuters

    Glencore's Mutanda mine in Congo shuts a month early

    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.

  • Glencore's Canadian unit to close 'uneconomic' Brunswick Lead Smelter
    Reuters

    Glencore's Canadian unit to close 'uneconomic' Brunswick Lead Smelter

    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.

  • Glencore plc (LON:GLEN) Is Yielding 6.5% - But Is It A Buy?
    Simply Wall St.

    Glencore plc (LON:GLEN) Is Yielding 6.5% - But Is It A Buy?

    Could Glencore plc (LON:GLEN) be an attractive dividend share to own for the long haul? Investors are often drawn to...

  • Glencore trims guidance as copper output falls
    Reuters

    Glencore trims guidance as copper output falls

    As part of the company's efforts to overcome problems in the politically volatile African state, Glencore in August laid out plans to separate its African copper business from its wider copper operations and halt production at its Mutanda copper and cobalt mine at the end of this year. Full-year 2019 copper output, excluding African copper, is expected to be around 1.010 million tonnes, while guidance for African copper was around 375,000 tonnes, making a total of just under 1.4 million tonnes versus previous guidance of around 1.45 million. Glencore's share price has been hard-hit with investors wary of its exposure to difficult regimes, while the price of the battery minerals found in them has been volatile.

  • Reuters

    Graphic - Deficit feeds lead's rally, but surplus on the horizon

    Benchmark lead on the London Metal Exchange at around $2,200 a tonne is up nearly 9% so far this year compared with losses of 3%, 7% and 25% for copper , aluminium and zinc respectively. Behind lead's ascent to 15-month highs above $2,200 a tonne is Nyrstar's Port Pirie lead smelter in Australia, which halted production in May. It produced 160,000 tonnes of lead last year. In a recent production report, Nyrstar said lead output at 51,000 tonnes in the first half of the year was down 27% for the same period last year.

  • UK fraud office opens Glencore bribery probe
    Reuters Videos

    UK fraud office opens Glencore bribery probe

    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%.