Glencore Share Discussion Threads

[waldron] 08/8/2018 13:25

Losses
8 Aug '18 - 13:15 - 14775 of 14776
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OPTIMISTIC SITE BUT SURPRISED THERE ARE STILL TWO STRONG SELLERS

[losses] 08/8/2018 13:15

https://uk.webfg.com/equity/Glencore

[waldron] 08/8/2018 13:05

Anglo-Swiss commodities trader Glencore PLC (GLEN.LN) published its first-half results on Wednesday. Here's how the results came in:



ADJUSTED EBITDA: Glencore reported first-half earnings before interest, taxes, depreciation and amortization of $8.27 billion with significant items stripped out. While a new record, this was just shy of a consensus estimate of $8.5 billion.

NET DEBT: The mining company reported net debt of $9 billion, beating the analyst consensus forecast of $9.5 billion by 5%.



WHAT WE WATCHED:



OPERATING COSTS: The company highlighted copper and zinc mine costs as higher than initial guidance due to project ramp-up and lower by-product pricing, which is something that Credit Suisse analysts had previously flagged as something to watch.

BUYBACK: Glencore didn't expand on its most recent buyback scheme but said that business confidence and its current share-trading levels point to near-term focus on funding shareholder returns and buybacks, as well as deleveraging efforts, through cash generation.



Shares at 1007 GMT were down 1% at 323.15 pence.



Write to Oliver Griffin at [e-mail]



(END) Dow Jones Newswires

August 08, 2018 06:38 ET (10:38 GMT)

[waldron] 08/8/2018 12:02

Should you buy the Glencore share price for its massive 10% shareholder yield?

Rupert Hargreaves | Wednesday, 8th August, 2018 | More on: GLEN RIO
Image source: Getty Images.

Glencore (LSE: GLEN) has tested its investors’ nerves over the past five years. Between July 2014 and July 2015, the share price fell 24% excluding dividends, compared to a decline of 2.5% for the FTSE 100.

Unfortunately, this was just the start. Over the next six months, to the end of January 2016, the stock cratered a further 65%. A dividend cut, then rights issue only added to the pain. However, since reaching the low in January 2016, the Glencore share price has undergone a miraculous recovery.

Today the company is undoubtedly one of the FTSE 100’s top income and growth stocks. But considering the commodity trader’s rocky past, should you buy the shares?
A miraculous turnaround

Since 2016, Glencore’s management has helped restore investor confidence by aggressively reducing debt and selling off assets. Higher commodity prices have also supported the business.

Today the group released its numbers for the first half of 2018, which clearly show how far the firm has come over the past two-and-a-half years. Adjusted earnings before interest, tax, depreciation and amortisation jumped 23% year-on-year to a record $8.3bn. Revenue was $108.5bn, against $100bn a year earlier. Net debt dropped to $9bn, from $10.7bn in the same period last year.

Adjusted EBITDA came in slightly below the City’s target of $8.5bn because the company struggled to sell 32,000 tonnes of copper. Management is confident it should be able to find buyers for this inventory in the second half.

With profits booming, Glencore’s management, led by Ivan Glasenberg (its founder and majority shareholder) is shifting its focus from growth towards shareholder returns. So far this year, the company has announced $4.2bn of cash payouts and stock repurchases, equivalent to 29 US cents per share.

According to my numbers, at the current rate of exchange, $0.292 is equal to 22.5p per share. Including debt reduction of $1.7bn or 9p per share, Glencore’s current shareholder yield is 9.7%. The shareholder yield captures the three ways of returning company cash to investors: debt paydown, share buybacks, and dividends.

And as the company exits recovery mode, I believe these healthy cash returns are set to continue, making Glencore, to my mind, one of the best investments in the FTSE 100.
Cash bonanza

Glencore isn’t the only miner chucking off cash. Iron ore giant Rio Tinto (LSE: RIO) also recently announced a record cash return to investors after several years of restructuring. Earlier this month, the company announced a $7bn cash windfall for investors. Rio plans to pay a record interim dividend of $2.2bn and add $1bn to its share buyback programme. Also, management is looking to return $4bn of asset sale proceeds to shareholders.

Even though the targeted $7bn cash return is a colossal figure, it pales in comparison to last year’s total distribution of $10bn, which amounted to 50% of shareholder returns for the entire mining sector.

Figures compiled by the Financial Times show that since 2013, Rio has returned $35.5bn to shareholders or 36% of its current equity market value. With the group targeting a further $5bn in efficiency savings from operations, and iron ore prices stabilising, it looks as if this trend can continue.

Based on the current dividend projections, shares in Rio yield 5.8%. The stock trades at a forward P/E of 10.6.

[waldron] 08/8/2018 11:59

8/08/2018 | 12:09
Glencore down 1% in London, despite posting a net profit up 13% to $ 2.8 billion for the first six months of the year, in a volatile commodity and trading environment but favorable.

The largest contribution to mining conglomerate profits came from industrial assets, where operating profit jumped 26%, driven by 'highly competitive' cost positions, according to the group.

Glencore adds that it focuses on creating value for shareholders through a 'disciplined long-term capital allocation'. 'It looks like we could see more share buybacks in the second half of the year,' says UBS.



OF COURSE THERE SHALL BE MORE SHARE BUYBACKS

[waldron] 08/8/2018 11:59

8/08/2018 | 12:09
Glencore down 1% in London, despite posting a net profit up 13% to $ 2.8 billion for the first six months of the year, in a volatile commodity and trading environment but favorable.

The largest contribution to mining conglomerate profits came from industrial assets, where operating profit jumped 26%, driven by 'highly competitive' cost positions, according to the group.

Glencore adds that it focuses on creating value for shareholders through a 'disciplined long-term capital allocation'. 'It looks like we could see more share buybacks in the second half of the year,' says UBS.



OF COURSE THERE SHALL BE MORE SHARE BUYBACKS

[waldron] 08/8/2018 11:56

Chuckle

you are truly a gentleperson

take care

enjoy your day

[waldron] 08/8/2018 11:56

Chuckle

you are truly a gentleperson

take care

enjoy your day

[twixy] 08/8/2018 11:33

Technical you were right, as the rest is a special dividend!

[waldron] 08/8/2018 11:05

Even allowing for geopolitical risk, many analysts still regard Glencore as undervalued.

[waldron] 08/8/2018 10:24

twixy

you were right,i think,the heats getting to me

i hereby apologise

cheers





Distribution payment date Amount (US dollars) paid per share
23 May 2018 (H1) 0.10
27 September 2018 (H2) 0.10


Amount to be paid per share for the H1 distribution in other currencies pursuant to listings/elections on 23 May 2018:


GBP
0.073535

Could it in fact be 7.75p approx for 27 september due to sterling weakness against USD

[twixy] 08/8/2018 10:14

Apologies- you're right ?

[waldron] 08/8/2018 10:11

twixy is it not the full year you be quoting

[waldron] 08/8/2018 10:11

twixy is it not the full year you be quoting

[twixy] 08/8/2018 10:10

Shouldn't that be around 7p (10 US Cents)?

[waldron] 08/8/2018 10:03

DMF

At a guess approx 2.71p being interim divi

[dmf] 08/8/2018 09:55

Losses - what is the dividend per share in GBP ?

[losses] 08/8/2018 09:41

Goes Xdiv 6 Sept

[leoneobull] 08/8/2018 09:15

Does the cost of sales include our bribery payments to dodgy middlemen?

[leoneobull] 08/8/2018 09:11

Sold some yday. Bought em back early doors. Great trading share

[sarkasm] 08/8/2018 09:07

courtesy of

PurplePanther
8 Aug '18 - 07:33 - 14743 of 14752
0 1 0
And their view on their own share price ...

“In addition, an up to $1 billion share buy-back programme running until 31 December 2018 was announced on 5 July. It is our view that our current equity price materially undervalues the business. As of 3 August 2018, GBP350 million of shares had been purchased under this programme.”


PERHAPS MARKET MAKERS REREAD AND THOUGHT AGAIN

- 08/08 10:07:43
325.625 GBp -0.21%