Glencore Share Discussion Threads

[gxgxx] 19/2/2020 10:44

Dirt Cheap
The current price is very good for $0.20 return this year.
Yes if they go down blah blah....
I have held for 4 years and seen some ups and downs.
I have topped up and sold some too.
If I was a 'day trader' I would have made fortune with these shares.
I do not want to pay too much CGT so I just bide my time.
Currently the dividends make holding and buying these shares a good bet.
Ivan G makes a decent return on his 9% holding.
Coal use will not stop overnight and it can be used for other purposes besides burning. These uses may well increase its value.
Glencore is diversifying and not sitting on its haunches they plan ahead.
Cobalt will be a massive earner over the next few years and Copper needs will only increase. MM's play with the share price and make money on the downs and ups, nothing new.

[florenceorbis] 19/2/2020 09:41

UBS Buy UP FROM 270.00 TO 280.00 Reiterates

Citigroup Buy Reiterates

[florenceorbis] 19/2/2020 09:17

This article is being republished as part of our daily reproduction of WSJ.com articles that also appeared in the U.S. print edition of The Wall Street Journal (February 19, 2020).

Glencore PLC swung to a loss in 2019 as subdued prices for commodities -- including coal -- weighed on earnings in its industrial unit and prompted the miner to write down the value of key assets.

The Anglo-Swiss commodities company booked $2.8 billion in impairment charges, which contributed to a net-loss of $404 million, down from a profit of $3.41 billion in 2018.

Glencore is the biggest exporter and producer of thermal coal among the world's major diversified mining companies, leaving it exposed to a steep decline in the price of the fossil fuel in recent years. The price of coal delivered into ports in Northern Europe -- a benchmark for sales from Glencore's coal-mining operations in Colombia -- fell 39% in 2019 amid a flood of cheap liquefied-natural gas, as well as policies designed to reduce greenhouse-gas emissions.

The drop in prices, which has extended into 2020, prompted Glencore to write down its Colombian coal assets by almost $1 billion, the company said in its annual report Tuesday.

The charges also included impairments to oil operations in Chad, stemming from the expiration of oil-exploration licenses. Glencore had failed to reach an agreement with the country's government about extending them. The company also impaired its copper and cobalt mine in the Democratic Republic of Congo by $300 million to reflect falling cobalt prices and its decision to halt production at the mine in November.

Glencore shares closed down 4.5% in London after the company reported the loss, its first since commodity prices slumped in 2015.

"It's clear that the amount of coal being consumed in the Atlantic [market] is decreasing," said Chief Executive Ivan Glasenberg, a former coal trader who has been consistently bullish about the outlook for the fossil fuel in the developing world. "That will continue to decrease."

Glencore is gearing up for a change of leadership after Mr. Glasenberg -- who became CEO in 2002 -- signaled late last year that the company would make management changes in 2020, paving the way for his retirement.

"We're working on it and there will be a few senior changes coming," Mr. Glasenberg told reporters. "Once the new generation's in place and ready to move on, then it's time for me, too, to move on."

Mr. Glasenberg said Glencore had no plans to stop mining thermal coal, which is burned to generate electricity, pointing to rising demand for the fuel in fast-growing Asian economies.

Glencore's coal reserves in Colombia are due to run out by 2035 and Chief Financial Officer Steven Kalmin said the company would review its operations in the Latin American country if they became unprofitable. Currently, they are breaking even, he said.

Glencore expects to keep mining thermal and metallurgical coal in Australia at current rates for longer, saying that demand for higher-quality Australian coal is rising at power plants and steel producers in Asia.

The miner -- one of the world's biggest producers of raw materials such as copper, cobalt and coal -- also said it was closely monitoring the deadly outbreak of coronavirus, which has caused significant disruption in China, the world's biggest consumer of raw materials.

The initial impact of the epidemic on Glencore's business has been minor, but the company could decide to reduce output if the illness leads to a sizable drop in demand in the commodities it produces, Mr. Glasenberg said.

"We haven't seen a major effect yet," he said. "We don't want to dig the material out of the ground if it's not required in the market."

Another gauge of profitability closely followed by investors -- adjusted earnings before interest, taxes, depreciation and amortization -- fell 26% to $11.6 billion from $15.8 billion in 2018. That was slightly ahead of the consensus forecast of $11.2 billion, according to a compilation of analyst predictions by Vuma.

Glencore's trading division -- which ships raw materials such as oil, copper and wheat around the world -- partially offset the pressure on profit from weak commodity prices. Adjusted Ebitda from marketing activities rose 5.8% to $2.6 billion, driven by the strong performance of the company's oil traders, who benefited from volatility in energy markets.

Analysts at Citigroup said Glencore had "reported a decent set of results," saying that a widening of net debt to $17.6 billion was largely driven by changed accounting standards.

Mr. Glasenberg declined to give more details about the timing and results of various regulatory investigations that have weighed on Glencore's share price in recent years.

The company said in July 2018 that it had received a subpoena from U.S. authorities related to compliance with corruption and money-laundering laws at its operations in the Democratic Republic of Congo, Nigeria and Venezuela. Last year, Glencore said it was also subject to investigations by the U.S. Commodity Futures Trading Commission and by the U.K.'s Serious Fraud Office.

Write to Joe Wallace at [e-mail]



(END) Dow Jones Newswires

February 19, 2020 02:47 ET (07:47 GMT)

[florenceorbis] 19/2/2020 09:15

Deutsche Bank Buy 275.00 - Reiterates

[montyhedge] 18/2/2020 19:53

https://www.thisismoney.co.uk/money/markets/article-8015545/Weaker-commodity-prices-major-impairment-charge-causes-Glencore-record-loss-5-years.html

[montyhedge] 18/2/2020 19:52

First loss in 5 years, disappointing.

[sarkasm] 18/2/2020 12:51

Another gauge of profitability closely followed by investors -- adjusted earnings before interest, taxes, depreciation and amortization -- dropped 26% to $11.6 billion from $15.8 billion in 2018. That was slightly ahead of the consensus forecast of $11.2 billion, according to a compilation of analyst predictions by Vuma.

Glencore's trading division -- which ships raw materials such as oil, copper and wheat around the world -- partially offset the pressure on profits from weak commodity prices. Adjusted Ebitda from marketing activities rose 5.8% to $2.6 billion, driven by the strong performance of the company's oil traders, who benefited from volatility in energy markets.

Analysts at Citigroup said Glencore had "reported a decent set of results," saying that a rise in net debt to $17.6 billion was largely driven by changed accounting standards.

[sarkasm] 18/2/2020 12:35

energyvoice

Glencore loses Chad exploration licences
by Ed Reed
18/02/2020, 11:54 am

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Glencore’s core business of marketing held up well in 2019 but the trader took a $2.8 billion impairment charge, driven in part by the loss of its oil exploration licences in Chad.

The company reported an overall net loss of $400 million. Its oil trading business held up well in the year, but it took a $538mn charge on its Chadian production. Other impairments included $514mn on its Prodeco coal operations and $435mn on its investment in a Colombian coal mine.

The Chad write down came about as a result of Glencore expensing historical cost allocations on exploration licences. The company said it had tried to extend the licences on its Chad East licences, acquired when it bought Caracal Energy in 2014, but had been unable to reach an agreement with the government. As such, all the value of exploration in Chad has been cancelled.

Glencore said the loss of its exploration assets in Chad would have no impact on its production and development work on the Mangara, Badila and Krim fields, which it groups as Chad West. These fields are held under exploitation licences.

Glencore bought Caracal for around $1.4bn. The trader has said it carries its Chadian oil assets at a value of $804mn, based on a price assumption of $65-72 per barrel. A 10% reduction in the price curve could lead to an impairment of around $202mn.

Chad’s Société des Hydrocarbures du Tchad (SHT) has a $379 million net debt to Glencore as of the end of 2019, which has been reduced from $393mn since 2018. The debt is paid down through future oil deliveries over 10 years.

This debt was restructured in early 2018. Chad had borrowed the money in 2014 in order to buy Chevron’s assets in the country. In hindsight, the debt and purchase deals were particularly badly timed.

SHT is not the only African state-backed company to owe Glencore money. The trader has also provided $375mn to Congo Kinshasa’s Société Nationale d’Électricité (SNEL) and $156mn to Société Nationale des Pétroles du Congo (SNPC). These will be repaid in power and oil deliveries respectively.

SNPC is seeking to restructure its debt, which is owed to Glencore and a syndicate of banks.

[123trev] 18/2/2020 11:51

Lol,absolutely not a holder have been but not at the present no and for very good reason given the circumstances and current backdrop. Your obviously passionate about your holdings and arguing with folks like you about economic cycles and pricing is pointless let’s let the share price do the talking! Ps and then there are those other matters.

[the grumpy old men] 18/2/2020 11:41

those write offs are book entries in main

The hypothetical loss of 30p will be covered by dividend payment within 2 years

By then the faithful would no dobt see a substantial increase in sp


do you hold glen 123trev

or just coming up with one liners with no true substance

[gxgxx] 18/2/2020 11:39

Grumpy - For a definitive answer you would need to ask Ivan G.

[123trev] 18/2/2020 11:30

TGOM, mmmm did you look at those results then add to that what’s coming!

[the grumpy old men] 18/2/2020 11:30

Glencore PLC swung to a loss in 2019 as it wrote down $2.8 billion in assets related to its businesses in coal and other commodities.

The Anglo-Swiss commodities giant, one of the world's biggest producers of raw materials such as copper, cobalt and coal, said it was closely monitoring the deadly outbreak of coronavirus, which has caused massive disruption in China, the world's biggest consumer of raw materials.

Glencore's revenue fell to $215.11 billion in 2019 from $220.52 billion a year earlier, the company said.

The initial impact of the epidemic on Glencore's business has been minor but the company could decide to reduce output if the illness leads to a major drop in demand for the commodities it produces, said Chief Executive Ivan Glasenberg.

"We haven't seen a major effect yet," Mr. Glasenberg said. "We don't want to dig the material out of the ground if it's not required in the market."

Shares in Glencore slipped 1.2% in London on Tuesday after the company reported a net loss of $404 million for 2019, compared with a profit of $3.41 billion in 2018.

The company booked $2.8 billion in impairments, driven by a roughly $1 billion charge related to its Colombian coal business, as declining demand in Europe pushed down the price of the fossil fuel.

Another gauge of profitability closely followed by investors -- adjusted earnings before interest, taxes, depreciation and amortization -- dropped 26% to $11.6 billion from $15.8 billion in 2018. That was slightly ahead of the consensus forecast of $11.25 billion, according to a compilation of analyst predictions by Vuma.

Glencore's trading division, which ships raw materials such as oil, copper and wheat around the world, partially offset the pressure on profits from weak commodity prices. Adjusted Ebitda from marketing activities rose 5.8% to $2.64 billion, driven by the strong performance of the company's oil traders, who benefited from volatility in energy markets.

Mr. Glasenberg declined to give more details about the timing and results of various regulatory investigations that have weighed on Glencore's share price in recent years.

The company said in July 2018 that it had received a subpoena from U.S. authorities related to compliance with corruption and money-laundering laws at its operations in the Democratic Republic of Congo, Nigeria and Venezuela.

Last year, Glencore said it was also subject to investigations by the U.S. Commodity Futures Trading Commission and by the U.K.'s Serious Fraud Office.

Glencore is gearing up for a change of leadership after Mr. Glasenberg, who became chief executive in 2002, signaled late last year that the company would make management changes in 2020, paving the way for his retirement.

"We're working on it and there will be a few senior changes coming," Mr. Glasenberg told reporters Tuesday. "Once the new generation's in place and ready to move on, then it's time for me, too, to move on."

Write to Joe Wallace at [e-mail]



(END) Dow Jones Newswires

February 18, 2020 05:40 ET (10:40 GMT)

[the grumpy old men] 18/2/2020 11:28

gxgxx
18 Feb '20 - 11:19 - 2072 of 2073
0 0 0
It is only a 30p loss if you sell your holding.
If the share price reduces by 30p and stays reduced by 30p then you might have an argument.
The share is undervalued anyway.
Wait to see what happens if and when Glencore get hold of Bunge and/or Rio Tinto

What you mean by


get hold of Bunge and/or Rio Tinto

[the grumpy old men] 18/2/2020 11:20

123Trev
18 Feb '20 - 11:18 - 2071 of 2071
0 0 0
In the coming weeks this is going to tank there is nothing to stop it.


what support can you give for this assumption or guess

[gxgxx] 18/2/2020 11:19

It is only a 30p loss if you sell your holding.
If the share price reduces by 30p and stays reduced by 30p then you might have an argument.
The share is undervalued anyway.
Wait to see what happens if and when Glencore get hold of Bunge and/or Rio Tinto

[123trev] 18/2/2020 11:18

In the coming weeks this is going to tank there is nothing to stop it.

[the grumpy old men] 18/2/2020 11:05

This will rise with the general market tide , the ebbing of the virus and the economic malaise impact

The trumps presidential election twitter effect will give the market stamina

Also the finalisation of all legal cases,fines,penalties and scandals

[losses] 18/2/2020 10:55

I ain't selling any... will definitely add if we go below 200.

[grupo guitarlumber] 18/2/2020 10:51

sr2day
18 Feb '20 - 10:38 - 2067 of 2067
0 0 0
everyone to his own as they say.but 15p income for a loss in capital of 30p potentially.risk/reward ?

AS YOU KNOW NOTHING CERTAIN IN THIS WORLD

THIS VIRUS BEING ONE

YOUR HYPO LOSS IS NOT CERTAIN BUT THE DIVI IS

[sr2day] 18/2/2020 10:38

everyone to his own as they say.but 15p income for a loss in capital of 30p potentially.risk/reward ?

[grupo guitarlumber] 18/2/2020 10:37

The next Glencore plc dividend

Ex-Div Date:
23 April 2020
Pay Date:
21 May 2020


Yield 2019 5,93%


Yield 2020 5,54%