Glencore Share Discussion Threads

[waldron] 07/4/2020 18:51

Glencore's Plans to Close Zambian Copper Mines Rejected by Zambian Government -- Update
07/04/2020 4:54pm
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Today : Tuesday 7 April 2020
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By Nicholas Bariyo



Glencore PLC plans to suspend copper output in Zambia for three months after it declared a force majeure related to at least two mines amid the worsening economic carnage caused by the coronavirus pandemic, said Richard Musukwa, minister of mines and mineral development, on Tuesday. The Zambian government has rejected the plans, he said.

Glencore's unit in Zambia, Mopani Copper Mines, said in a statement that halting operations will help protect the company's value and preserve future growth projects when market conditions improve.

"The operating, regulatory and macroeconomic environments remain very challenging and have continued to place significant pressure on the business," the company said. "Mopani's situation has been further impacted by the critical disruptions to international mobility, transportation and supply chains arising from Covid-19."

According to Mr. Musukwa, the government has rejected the company's plans to close the mines because the reasons being cited are not adequate and "do not conform with the law."

Glencore's decision comes days after it announced that it was reviewing its Zambian operations to minimize costs amid the uncertainty caused by the coronavirus pandemic.

Mr. Musukwa said the government won't let the commodities giant hastily close operations and cut over 1,100 jobs. Glencore produced around 120,000 tons of copper at its Zambian units in 2018. Until the current disruption, the miner hoped to produce between 50,000 to 70,000 tons of copper at its operations this year, according to company officials.

"The Ministry is not aware of any event that has happened... which makes mining impossible," Mr. Musukwa said. "The measures taken by government to mitigate the effects of Covid-19 have hitherto not been a lockdown but steps to allow commerce to continue in the country, especially the mining sector," he said.

Last year, Glencore closed its giant Mutanda mine in the neighboring Democratic Republic of Congo amid sliding metal prices. Copper and cobalt prices have taken a hit since late last year, amid concerns over the global economy and the trade war between the U.S. and China. The pandemic has compounded mining companies' woes.



Write to Nicholas Bariyo at [e-mail]



(END) Dow Jones Newswires

April 07, 2020 11:39 ET (15:39 GMT)

[waldron] 07/4/2020 17:12

Iron Ore 81.90-0.59(-0.72%)
Gold COMEX 1,693.40 -0.03%
Silver COMEX 15.56 +2.58%
Platinum NYMEX 746.00 +1.91%
Copper COMEX 2.28 +2.95%
Brent Crude Oil NYMEX 32.98 -0.21%
Gasoline NYMEX 0.69 -1.85%
Natural Gas NYMEX 1.92 +4.01%
WTI 26.265 USD -2.54%

FTSE 100
5,704.45 +2.19%
Dow Jones
23,306.17 +2.76%
CAC 40
4,438.27 +2.12%
SBF 120
3,492.6 +2.24%
Euro STOXX 50
2,857.67 +2.04%
DAX
10,356.7 +2.79%
Ftse Mib
17,406.19 +2.15%






Rio Tinto
3,776.5 +0.00%





Bhp
1,326.6 +3.74%



Anglo American
1,427 +9.99%

Glencore
141.48 +8.68%

[peeks007] 07/4/2020 10:11

This will be 200p by July and 275p by mid 2021.

[waldron] 06/4/2020 17:34

Iron Ore 82.49 +0.11(0.13%)
Gold COMEX 1,690.70 +2.73%
Silver COMEX 14.99 +3.42%
Platinum NYMEX 730.90 +1.78%
Copper COMEX 2.21 +0.87%
Brent Crude Oil NYMEX 32.75 -3.99%
Gasoline NYMEX 0.70 +1.46%
Natural Gas NYMEX 1.82 +4.83%
WTI 26.795 USD -6.93%

FTSE 100
5,582.39 +3.08%
Dow Jones
22,146.45 +5.20%
CAC 40
4,346.14 +4.61%
SBF 120
3,416.2 +4.71%
Euro STOXX 50
2,795.97 +5.02%
DAX
10,075.17 +5.77%
Ftse Mib
17,017.39 +3.86%


Rio Tinto
3,776.5 +0.41%



Bhp
1,278.8 +3.03%



Anglo American
1,297.4 +6.55%



Glencore
130.18 +8.48%

[sr2day] 06/4/2020 13:55

doing well to hold above 120p.target under 100p.

[waldron] 06/4/2020 13:51

Price (GBX) 126.92 Var % (+/-) +5.77% (Up +6.92)
High 129.98 Low 123.96
Volume 16,260,050 Last close 120.00 on 03-Apr-2020
Bid 126.88 Offer 126.96
Trading status Regular Trading Special conditions NONE

[waldron] 06/4/2020 13:49

montyhedge
6 Apr '20 - 13:40 - 2346 of 2346
0 0 0
Doing well to hold above 200p, no dividend, price targets falling.

do not understand your comment

[montyhedge] 06/4/2020 13:40

Doing well to hold above 200p, no dividend, price targets falling.

[grupo] 06/4/2020 11:16

GLEN RBC Capital Markets Sector Performer from 210.00 to 190.00 Reiterates


RIO RBC Capital Markets Underperform from3,400.00 to2,800.00 Reiterates

RIO Goldman Sachs Buy from4,550.00 to4,540.00 Reiterates


BHP Goldman Sachs Buy from1,710.00 to1,670.00 Upgrades


BHP RBC Capital Markets Outperform from1,550.00 to1,450.00 Reiterates


AAL RBC Capital Markets Sector Performer 2,300.01,500.00 Downgrades


ANTO RBC Capital Markets Underperform 760.00 600.00 Downgrades

[waldron] 03/4/2020 17:41

Iron Ore 82.38 +0.65(0.79%)
Gold COMEX 1,644.70 +0.43%
Silver COMEX 14.52 -0.95%
Platinum NYMEX 716.90 -1.79%
Copper COMEX 2.19 -1.24%
Brent Crude Oil NYMEX 32.55 +8.72%
Gasoline NYMEX 0.68 +2.44%
Natural Gas NYMEX 1.71 +2.03%
WTI 26.67 USD +8.06%


FTSE 100
5,415.5 -1.18%
Dow Jones
20,990.67 -1.97%
CAC 40
4,154.58 -1.57%
SBF 120
3,262.43 -1.67%
Euro STOXX 50
2,662.99 -0.67%
DAX
9,525.77 -0.47%
Ftse Mib
16,477.88 -2.12%



Rio Tinto
3,761 +1.06%



Bhp
1,241.2 -1.41%



Anglo American
1,217.6 -6.19%



Glencore
120 -5.42%

[waldron] 03/4/2020 15:18

Copper forecasts down as coronavirus slows demand and disrupts mining activity

MiningIndustrial Minerals

By Andrew Fawthrop 03 Apr 2020

A downturn in industrial activity, particularly in China, coupled with mining disruptions due to coronavirus has prompted a revision of copper growth forecasts
BHP spence copper

BHP operates large copper mining operations in Chile (Credit: BHP)

The impact of coronavirus on global copper mining activity is expected to slow production forecasts and weaken commodity prices for the year, as China, Chile and Peru face disruption in their respective industries.

Outlook before the spread of the pandemic was for 3.4% growth in copper output across the world, according to the analysts at GlobalData. However, falling demand coupled with operational interruptions has led this forecast to be revised downwards to 1.9% growth over the year.

That would mean a worldwide production total of 21 million tonnes in 2020, with operations at the Grasberg mine in Indonesia and the Cobre Panama mine expected to offset some of the reductions elsewhere.

GlobalData senior mining analyst Vinneth Bajaj said: “Production growth in China is forecast to be around 6%, which is down from the 9.6% expected before the outbreak.

“Lockdowns in Chile and Peru will reduce the output in two markets that currently account for 40% of the global supply.

“Production in Chile is forecast to grow by 0.3% and in Peru by 2% — compared with a 1.4% decline and 2.6% growth respectively in 2019. There is also expected to be a slowdown in development of new projects.”


Impact of coronavirus on construction industry dampens copper demand forecasts

Copper is a key commodity used primarily in construction and electronics manufacturing. A downturn in Chinese economic activity due to the pandemic has severely dented its demand since the turn of the year as major industry and building projects are put on hold during lockdown measures.

With 40% to 45% of world copper demand dependent on the construction sector alone, GlobalData has revised down its demand forecast for the year, from 4.1% growth to 2.7% growth.

Trading of the metal had been rebounding towards the end of last year from the effects of the US-China trade war, which pushed prices down by 8% in 2019 compared to the previous year.

But the prolonged impact of Covid-19 has stalled this progress, with prices down to $4,775 per tonne by the end of March, compared with $5,694 per tonne at the end of 2019.


Analysts hopeful of upturn in second half of the year

While the duration of the Covid-19 health emergency remains an unknown, analysts are hopeful of recovery later in the year as economic activity begins to resume.

Bajaj added: “Our latest expectations are for global construction output to grow by just 0.5% in 2020, from an original forecast of 3.1%.

“The direct impact on construction has been the halting of work — with labour unable to get to the construction sites — and disruption to supply chains with delays in the delivery of key materials and equipment due to quarantines and travel restrictions.

“The current forecast assumes that the outbreak is contained across all major markets by the end of the second quarter — following which conditions would allow for a return to normalcy in terms of economic activity and freedom of movement in the second half of the year.

“However, there will be a lingering and potentially heavy impact on private investment due to the financial toll that is being inflicted upon businesses and investors across a wide range of sectors.”

Over the next three months, GlobalData expects copper prices to average between $4,700 per tonne and $4,900 per tonne, given the weak demand and the slowdown in industrial activity.

[waldron] 02/4/2020 17:25

Iron Ore 81.73+1.39(1.70%)
Gold COMEX 1,629.00 +2.36%
Silver COMEX 14.56 +4.08%
Platinum NYMEX 726.50 +1.21%
Copper COMEX 2.22 +1.93%
Brent Crude Oil NYMEX 30.39 +22.84%
Gasoline NYMEX 0.68 +25.16%
Natural Gas NYMEX 1.69 -1.34%
WTI 24.955 USD +17.32%

FTSE 100
5,480.22 +0.47%
Dow Jones
21,267.19 +1.55%
CAC 40
4,220.96 +0.33%
SBF 120
3,317.69 +0.44%
Euro STOXX 50
2,688.49 +0.78%
DAX
9,570.82 +0.27%
Ftse Mib
16,740.07 +1.18%




Rio Tinto
3,721.5 +3.17%



Bhp
1,259 +3.98%



Anglo American
1,298 -1.29%



Glencore
126.88 +6.48%

[trader365] 02/4/2020 15:57

"Breaking: WTI Oil surges above $25 after Trump expects Saudi-Russian deal to cut production by 10-15mpbd"

[waldron] 01/4/2020 17:33

Iron Ore 80.34-7.68(-9.56%)
Gold COMEX 1,603.40 +0.43%
Silver COMEX 14.14 -0.11%
Platinum NYMEX 723.30 -0.90%
Copper COMEX 2.17 -2.67%
Brent Crude Oil NYMEX 25.01 -5.09%
Gasoline NYMEX 0.56 -6.19%
Natural Gas NYMEX 1.71 -2.45%
WTI 20.662 USD +1.89%

FTSE 100
5,454.57 -3.83%
Dow Jones
21,214.49 -3.21%
CAC 40
4,207.24 -4.30%
SBF 120
3,303.23 -4.10%
Euro STOXX 50
2,667.7 -4.22%
DAX
9,544.75 -3.94%
Ftse Mib
16,583.47 -2.74%


Rio Tinto
3,607 -3.00%



Bhp
1,210.8 -3.29%



Anglo American
1,315 -7.16%



Glencore
119.16 -3.75%

[grupo] 01/4/2020 08:20

GLEN Morgan Stanley Overweight 240.00 -

BHP Morgan Stanley Overweight 1,680.00

[florenceorbis] 01/4/2020 07:53

The Times: Glencore has postponed a decision on whether to pay its proposed $2.6 billion dividend this year amid risk that its production could be significantly disrupted by the coronavirus pandemic.

[waldron] 31/3/2020 17:46

ACTION
31 Mar '20 - 17:18 - 2332 of 2333
0 0 0
Goldman is telling that glass half empty

So time to do opposite?
montyhedge
31 Mar '20 - 17:23 - 2333 of 2333
0 0 0
Whatever they say do the opposite.


GET THE RIGHT SIZED GLASS

THEN IT WILL NOT BE HALF FULL OR HALF EMPTY

[montyhedge] 31/3/2020 17:23

Whatever they say do the opposite.

[action] 31/3/2020 17:18

Goldman is telling that glass half emptySo time to do opposite?

[waldron] 31/3/2020 17:15

Iron Ore 88.02-0.20(-0.23%)
Gold COMEX 1,624.60 -1.13%
Silver COMEX 14.40 +1.86%
Platinum NYMEX 733.20 +1.30%
Copper COMEX 2.23 +3.62%
Brent Crude Oil NYMEX 26.52 +0.38%
Gasoline NYMEX 0.63 +2.19%
Natural Gas NYMEX 1.66 -1.78%
WTI 20.377 USD -0.80%


FTSE 100
5,671.96 +1.95%
Dow Jones
22,414.68 +0.39%
CAC 40
4,396.12 +0.40%
SBF 120
3,444.49 +0.58%
Euro STOXX 50
2,785.26 +0.97%
DAX
9,935.84 +1.22%
Ftse Mib
16,989.52 +0.69%


Rio Tinto
3,718.5 +1.21%



Bhp
1,252 +2.77%



Anglo American
1,416.4 +5.88%



Glencore
123.8 +4.03%

[waldron] 31/3/2020 16:21

2020 Distribution

The Board considers it prudent to defer its decision as to whether to proceed with the proposed cash distribution of $0.20 per share (c. $2.6 billion) in 2020, in order to strengthen the Group's overall financial position and reflecting that, although none to date, there exists the risk of material production disruption due to COVID-19.

When the Board is in a better position to consider COVID-19's updated impacts, the economic outlook, and the Company's prospects, expected alongside release of the Group's interim results in Q3 2020, it will then decide what level of distribution would be appropriate to make this year.

Refinancing and extension of Revolving Credit Facilities

Our Facilities have been refinanced and extended, effective 22 May 2020, on the same commercial terms as our 2019 Facilities.

The shorter-term Facilities were initially launched at $8 billion and closed substantially oversubscribed, raising $10.75 billion. Reflecting strong support from Glencore's broad group of relationship banks:

-- Glencore scaled back subscription levels and ultimately increased the size of the Facilities to $9.975 billion, up from the $9.775 billion signed in 2019

-- A total of 48 banks committed to the Facilities, including 31 Mandated Lead Arrangers and Bookrunners.

The longer-term $4.65 billion revolving credit facility was extended to 2025.

The new and extended facilities are for general corporate purposes, comprising:

-- a $9.975 billion 12-month revolving credit facility, with a 12-month term-out option at Glencore's discretion, and a 12-month extension option

-- a $4.65 billion 5-year revolving credit facility with a 12-month extension option

As in previous years, these committed unsecured facilities contain no financial covenants, no rating triggers, no material adverse change clauses and no external factor clauses.

Glencore's Chairman, Tony Hayward, commented: "As well as prioritising the health and wellbeing of our people, their families and our communities, we are taking a cautious approach to protect our capital structure amid the current period of extreme uncertainty. Therefore, notwithstanding that Glencore continues to generate material levels of positive free cash in the current environment, the board considers it prudent to defer the distribution decision. We will review the opportunity for a distribution at our August results, when we will have an improved understanding of COVID-19's impact on our business and its prospects."

[montyhedge] 31/3/2020 16:19

dremel
Same has every company, income boys dividend is only put on ice, not cancelled so to speak.