Share Name Share Symbol Market Type Share ISIN Share Description
Glencore Plc LSE:GLEN London Ordinary Share JE00B4T3BW64 ORD USD0.01
  Price Change % Change Share Price Shares Traded Last Trade
  -1.20 -0.4% 302.00 70,898,063 16:35:18
Bid Price Offer Price High Price Low Price Open Price
301.60 301.70 305.05 299.85 303.95
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Mining 104,108.75 -3,741.94 -10.24 40,240
Last Trade Time Trade Type Trade Size Trade Price Currency
18:11:27 O 54,054 301.53 GBX

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Glencore Daily Update: Glencore Plc is listed in the Mining sector of the London Stock Exchange with ticker GLEN. The last closing price for Glencore was 303.20p.
Glencore Plc has a 4 week average price of 263.50p and a 12 week average price of 230.05p.
The 1 year high share price is 310.55p while the 1 year low share price is currently 130.12p.
There are currently 13,324,342,541 shares in issue and the average daily traded volume is 36,458,808 shares. The market capitalisation of Glencore Plc is £40,239,514,473.82.
gxgxx: Very good article....... Glencore Gets an Upgrade from JPMorgan Because It’s Heavily Exposed to Commodity Prices Mining and commodities trading giant Glencore has been upgraded to overweight by JPMorgan, partly due to its exposure to base metals and copper prices, which have rallied in recent weeks. Copper futures rose above $4 a pound on Friday for the first time since September 2011, moving higher again on Monday above $4.12 amid hopes of the global economic recovery gathering pace. Nickel and aluminum prices have also hit multiyear highs. Glencore has the highest exposure to base metals and copper, around 40% of earnings before interest, taxes, depreciation, and amortization (Ebitda), of all the U.K. diversified miners, JPMorgan analysts said. They added that higher commodity prices in 2021 will have a “transformative impact” on Glencore’s earnings and cash flow. They estimated Ebitda of $17.9 billion in 2021 and $18.2 billion in 2022, compared with $11.6 billion in both 2019 and 2020. The company posted a net loss of $1.9 billion in 2020 after writing off assets worth $5.9 billion, but reinstated its dividend as net debt fell 10% driven by higher commodity prices in the second half of the year. JPMorgan said it had greater confidence in the company’s outlook after the recent results, improving operational stability and new guidance. Read:These Miners Are a Buy Because the Copper Market Can’t Keep Up With Demand Glencore is more exposed than its peers when it comes to rising prices. A 10% rise in all commodity prices in unison leads to a 43% increase in the miner’s estimated annual earnings per share (EPS). In comparison a 10% change in all commodities has a 15% impact on Rio Tinto and BHP’s EPS and a 20% impact on Anglo American’s , JPMorgan noted. Miners in the Europe, the Middle East and Africa region are cheap and “high-yielding reflation proxies,” the investment bank’s analysts said. They added that mining stocks are positively correlated to rising bond yields, noting that JPMorgan economists have raised their 10-year U.S. Treasury yield forecast to 1.65% by the fourth quarter of this year. Expected earnings for EMEA miners are set to surpass the “Supercycle peaks” of 2011/12, they said. Read:Stocks Slump as Bond Yields Rise Glencore still has higher regulatory and environmental, social, and governance risks than BHP, Rio Tinto and Anglo American, the analysts admitted, most notably ongoing investigations by the U.S. Department of Justice and the U.S. Commodity Futures Trading Commission. But improving operational outlook and “surging earnings momentum” created a low bar for a price target of £3.50, compared with Monday’s price of £3.03—even with JPMorgan’s “conservative” commodity price forecasts, they said. Glencore’s investment case was more intrinsically linked to its leverage than peers, they said, due to the debt-funding requirements of its marketing activities. “At current commodity prices we estimate net debt will fall to the bottom end of management’s $10 billion to $16 billion target range in 2021, which unlocks capital headroom,” they said. Despite the upgrade and the target price increase, JPMorgan said a resolution to the company’s regulatory issues was likely required to “fully revitalize” the investment case for global investors.
grupo guitarlumber: Rio Tinto confirms $9bn dividend in a week of bumper returns for mining shareholders MiningMajor Commodities By Andrew Fawthrop 17 Feb 2021 Rio Tinto, BHP and Glencore have each confirmed big dividends this week, as mining companies benefited from a price surge for major commodities in 2020 Rio Tinto Pilbara Cape Lambert iron ore Iron ore at Rio Tinto's Cape Lambert operation in Pilbara, Western Australia (Credit: Rio Tinto) Rio Tinto has confirmed its largest-ever annual payout to shareholders, in a week when rivals BHP and Glencore also upped their own dividends in response to solid returns across the mining industry in 2020. In total, the Anglo-Australian miner issued payments of $9bn for the full year, equivalent to 557 cents per share and 72% of its underlying earnings for the 12-month period. It includes a $5bn final ordinary dividend and a $1.5bn special dividend announced today (17 February). Rio benefited from a surge in prices for iron ore – its biggest commodity focus – during the year, buoyed by strong demand for the steelmaking ingredient in China as the country emerged first from the depths of the coronavirus downturn. Its underlying earnings from iron ore increased by 18% year-on-year to $11.4bn – accounting for more than 90% of total earnings from all product segments. “Safe and well-run operations, together with world-class assets, great people, capital discipline and a strong balance sheet, leave Rio Tinto well placed to generate superior returns for shareholders,” said chief executive Jakob Stausholm. BHP and Glencore further boost 2020 mining dividends Yesterday, rival BHP issued a $5.1bn dividend alongside its half-year results on the back of strong earnings driven by the price surge for iron ore and copper. Analysts suggest an even bigger windfall could be on the cards later in the year when the firm posts its full-year update, assuming commodity markets maintain strong performance. “Our outlook for global economic growth and commodity demand remains positive, with policymakers in key economies signalling a durable commitment to growth and signalling ambitions to tackle climate change,” said BHP chief executive Mike Henry. “These factors, combined with population growth and rising living standards, are expected to drive continuing growth in demand for energy, metals and fertilisers.” Glencore resumed its dividend with a $1.6bn payment, having paused shareholder returns in August amid uncertainty surrounding the pandemic. For the Swiss mining giant, 2020 was the last of its dividends to be paid out under the tenure of long-standing chief executive Ivan Glasenberg as he prepares to leave his role at the head of Glencore. The South African industry veteran retains a roughly 9% ownership interest in the company, however. While the impact of the pandemic caused huge disruption to global industry and commodity markets last year, diversified mining companies have been boosted by growing demand for some of their core products, like iron ore and copper, as major economies prepare to build their way out of the economic downturn with large infrastructure projects. Some analysts and financial planners, including at JP Morgan Chase, have suggested a new commodity “supercycle221; may getting underway, with crude oil also enjoying a price resurgence after a dire 12 months amid record demand loss for petroleum fuels. “Lower interest rates and high levels of government spending should both stimulate economic activity and increase demand for commodities,” noted analysts at Hargreaves Lansdowne. “Meanwhile years of financial restraint post 2015/16 mean miners haven’t necessarily spent as much as they might have on new mines. “That combination of increased demand and lower investment in new supply could be explosive for commodity prices, and excellent news for miner’s profits. “Ultimately, it’s difficult if not impossible to say with any degree of certainty which direction commodities will take. However, we certainly see an argument for miners being on track for better times ahead.” A difficult year for Rio Tinto, despite financial gains Rio Tinto reported underlying earnings of $12.4bn for 2020, up 20% year-on-year, with consolidated revenues up 3% to $44.6bn and net debt falling from $3.65bn to $664m. Yet despite the strong financial performance, it was also a damaging year for the company, which suffered a big reputational blow when it destroyed the Juukan Gorge aboriginal heritage site in Pilbara, Western Australia during a mine expansion in May. The incident prompted a parliamentary inquiry and ultimately cost former chief executive Jean-Sébastien Jacques his job, along with two other senior executives. Newly-appointed Rio Tinto CEO Jakob Stausholm said: “It has been an extraordinary year – our successful response to the Covid-19 pandemic and strong safety performance were overshadowed by the tragic events at the Juukan Gorge, which should never have happened.” The mining company recently reshuffled its executive structure under the new boss, with a primary aim of rebuilding trust with project stakeholders following the episode. Scope 3 emissions on the agenda In today’s update, Rio outlined new targets for addressing its Scope 3 emissions – those caused by the end use of the products it sells, and the hardest to abate. It said it plans to achieve net-zero emissions from the shipping of its goods by 2050, and align with the International Maritime Organisation (IMO) goal of a 40% reduction in shipping intensity by 2030. Rio also plans to work with partners in the steelmaking sector on pathways to decarbonise the manufacturing process and invest in technologies that can advance this process. Glencore recently set its own targets for tackling Scope 3 emissions, as part of a broader push to eliminate the entirety of its carbon footprint by 2050. It confirmed in its financial update yesterday that this climate strategy will be put to shareholders for an advisory vote at its forthcoming annual general meeting in April. Carlota Garcia-Manas, senior responsible investment analyst at Royal London Asset Management (RLAM), welcomed this move, saying it “constitutes another big step in the transformation of this company and reinforces the value of shareholder engagements”. She added: “Glencore is one of a few companies leading the way” on climate action.
gxgxx: GLENCOÂEGlencorePreliminary Results 20201NEWS RELEASEBaar, 16 February 2021Preliminary Results 2020HighlightsGlencore’s Chief Executive Officer, Ivan Glasenberg, commented: “The Covid-19 pandemic is an extraordinary challenge that continues to impact many aspects of day-to-day life. Against this backdrop, the strength of our 2020 underlying performance is a credit to our highly skilled and dedicated employees, and alsoreflects our unique business model and ability to quickly adapt to changing market conditions and customer needs. “Navigating from recessionary conditions in the first half to a strong price recovery for most commodities in the second, Adjusted EBITDA finished the year flat at $11.6 billion. An outstanding Marketing performance lifted EBIT by 41% to $3.3 billion, while Industrial Adjusted EBITDA fell 13% to $7.8 billion, primarily reflecting weaker coal prices. A notable improvement was seen at our Katanga operation in the DRC, where its successful ramp-up lifted Africa copper EBITDA to $712 million from a loss of $349 million in 2019. Strong second half cash flows repositioned Net debt of $15.8 billion within our target range, allowing for the resumption of distributions. We are recommending to shareholders a distribution of $0.12 per share.“As the world focuses on the pathway to recovery from Covid-19, it is clear that meeting the goals of the Paris Agreement has taken on even greater urgency. While innovation and technological advances have transformed how we live and work, the commodities needed to enable this have not. Our commodities are essential in developing all facets of infrastructure needed to deliver the goals of energy and mobility transition.“We are focused on playing our part in supporting the Paris goals and have set out a clear strategy to address our total emissions footprint – being Scope 1, 2 and 3 emissions. “Glencore has been transforming the global commodities industry for nearly half a century, growing from a trader of ferrous and non-ferrous metals, minerals and crude oil, into one of the world’s largest natural resource companies. Today, the business and its portfolio of commodities is uniquely positioned for the needs of the future. It is ready to support the transition to a low-carbon economy and realise its ambition of net-zero by 2050. We remain focussed on creating sustainable long-term value for all stakeholders while operating in a responsible manner across all aspects of our business” Full report . ..... hxxps://
grupo: Glencore Adjusts Conversion Price Of USD625 Million Bonds Due 2025 Mon, 4th Jan 2021 08:23 Alliance News (Alliance News) - Glencore PLC on Monday said it has adjusted the conversion price for bonds due 2025. The Anglo-Swiss miner said the USD625 million non-dilutive cash-settled guaranteed convertible bonds due 2025 were issued by its subsidiary Glencore Funding LLC. The conversion price was adjusted to GBP4.7827 from GBP4.6320. Glencore shares were trading 2.8% higher in Johannesburg on Monday at ZAR48.16 each, while in London, the stock was 4.5% at 243.45 pence a share. The adjustment of conversion price is effective immediately, Glencore noted. By Evelina Grecenko;
sarkasm: Investomania Will the HSBC, Glencore and Centrica share prices make gains after their declines? Could HSBC Holdings plc (LON:HSBA) (HSBA.L), Glencore PLC (LON:GLEN) (GLEN.L) and Centrica PLC (LON:CNA) (CNA.L) post improving share price performances? November 10, 2020 Robert Stephens, The HSBC Holdings plc (LON:HSBA) (HSBA.L), Glencore PLC (LON:GLEN) (GLEN.L) and Centrica PLC (LON:CNA) (CNA.L) share prices have experienced difficult periods this year. Could they produce improving performances in the long run? In my opinion, the HSBC share price has long-term turnaround potential. I think the company is making the right moves in terms of seeking to reduce costs at a time when it is experiencing an exceptional set of trading conditions. Sure, low interest rates and a difficult economic outlook in many of its main markets may weigh on its near-term share price prospects. However, I think that its 37% share price fall since the start of the year suggests that investors have accounted for this to some extent. I also believe that HSBC’s exposure to Asia may be of benefit to it in future. It could experience a higher rate of growth than its UK and European focused sector peers. This may improve its capacity to recover from recent declines in its valuation. I’m also upbeat about the long-term outlook for the Glencore share price. To my mind, the company has delivered a sound operational performance during unexpectedly difficult conditions in 2020. Most of its assets have continued to operate in spite of lockdowns being present in many regions this year. In the short run, investor sentiment could continue to be weak because of a difficult global economic outlook. This may reduce demand for commodity-related companies such as Glencore that are more reliant on the global economic outlook than some of their FTSE 100 peers. However, the company’s decision to postpone dividend payments, the capacity of its marketing division to provide growth in a variety of market settings and its strategy to embrace a low-carbon global economy mean that I’m optimistic about its potential to reverse share price declines experienced in 2020. Volatility may continue to be high, but I feel that it can produce relatively sound returns in the long run from its current price level. The Centrica share price has disappointed for a number of years. To my mind, the company has struggled to deliver on its revised strategy. This may have contributed to weakening investor sentiment that has caused the company to underperform the FTSE 100 by 80% over the past five years. The FTSE 100’s decline this year means that I believe there are a number of stocks that offer good value for money at the moment on a long-term basis. Therefore, for me, the Centrica share price does not have a large amount of appeal just now. I would rather wait for the business to start delivering more resilient operational and financial performance before becoming more bullish about its long-term prospects. Disclosure: the author has no position in any stocks mentioned.
waldron: Glencore Follows Oil Majors Reaping Bumper Trading Profits 17 minutes ago (Jul 31, 2020 07:36) (Bloomberg) -- Glencore (LON:GLEN) said trading profit will be at the top end of its target this year as the commodities giant joins big oil companies enjoying a bonanza from volatile price swings. The company made nearly $1 billion in earnings before interest and taxes in oil trading in the first six months of 2020, similar to what the company made in the whole of 2019, people familiar with the matter said last week. Oil trading profits have bailed out the energy sector so far this year. Royal Dutch Shell (LON:RDSa) Plc said Thursday that the last quarter was the best on record for its trading business, while French rival Total SE said it was able to exploit extreme price volatility during April’s record supply glut. “Our marketing business has also risen to the challenge, delivering robust counter-cyclical earnings,” Glencore Chief Executive Officer Ivan Glasenberg said in a statement Friday. “A very strong first-half performance allows us to now raise our full year 2020 EBIT expectations to the top end of our $2.2-$3.2 billion guidance range.” The trading profit will be a relief for Glencore. Once again, the miner and trader has missed out on an iron rally that has provided bumper earnings for its biggest rivals, such as Rio Tinto (NYSE:RIO) Plc and Anglo American (LON:AAL) Plc. Glencore’s mining profits are driven by coal and copper, but it has no exposure to the steelmaking ingredient. While copper prices have been resilient through the pandemic, thermal coal has crashed, falling to the lowest levels since the commodity crisis five years ago. Glencore responded today by saying it would mine less of the fuel, cutting its target for the year to about 114 million tons, from a previous forecast of 132 million tons. The cuts will come from its Colombian mines, which are struggling because of weak demand for the product in Europe. The company said it wants to keep its Prodeco mine in the country closed for now. Glencore has a long tradition of cutting output to support prices, having held back production in zinc, coal and cobalt in recent years after prices weakened.
sarkasm: Https:// Cobalt price: BMW avoids the Congo conundrum – for now Frik Els | July 17, 2020 | 4:56 pm Battery Metals Education Intelligence Markets Top Companies Africa China Europe Cobalt Lithium Manganese Nickel German luxury vehicle maker BMW this week signed a $2.3 billion long-term deal with Swedish battery maker Northvolt, the latest of such deals, as European carmakers try to compete with Tesla in the burgeoning electric vehicle market. Managem owns Bou-Azzer, the only primary cobalt mine in the world and in operation since 1930. Tesla’s gigafactories and battery technology have long given it an edge in the EV market (Northvolt was started by two former Tesla execs), but when it comes to the sourcing of raw material for lithium ion batteries, the California company faces the same challenges as traditional carmakers. Which makes another, much smaller, deal BMW struck last week more significant in finding an advantage over Tesla and stealing a march on its German and Japanese competitors. The Munich-based carmaker signed a five-year cobalt supply deal with Moroccan miner Managem worth some $112m. Managem owns Bou-Azzer in the Anti Atlas mountains, the only primary cobalt mine in the world and in operation since 1930. BMW says the offtake agreement, first announced a year ago, covers roughly one-fifth of its requirements for the NCM (nickel-cobalt-manganese) cathodes in its batteries, which together with Tesla’s NCA (nickel-cobalt-aluminum) represents more than 90% of the market. The other 80% of the cobalt it needs comes from the Murrin Murrin mine in Australia, a Glencore owned operation, and makes BMW the only carmaker with a direct to mine raw material sourcing approach. Roskill, a metals, minerals and chemical industry research company, estimates approximately 19.6kt cobalt will be required and provided for by the two sole suppliers between 2020-2025. For Managem and Glencore to provide 100% of BMW’s cobalt requirements, approximately 85% of each company’s respective mine production would need to be assigned to BMW, totalling around 1.5ktpy and 2.4ktpy from Managem and the Swiss giant respectively. Roskill says these volumes are significantly higher than previous estimates may also imply an agreed long-term cobalt metal price at a discount to current market levels. Congo-China-cobalt conundrum Annual cobalt production is only around 130,000 tonnes, mostly as a byproduct of nickel and copper mining. Some two-thirds of supply comes from the Democratic Republic of the Congo. That proportion may rise as production from the country has largely escaped the effects of covid-19 with workers confined to mine sites (the virus closed another major supplier – the Ambatovy mine in Madagascar). More than 80% of the chemical processing and refining capacity of cobalt is located in China, In the DRC fears about political instability, the challenges of ethical sourcing and the presence of thousands of artisanal miners combine to supercharge supply concerns. The cobalt from Bou-Azzer and Murrin Murrin is not suitable to enter the battery supply without chemical conversion and downstream the supply chain is even more concentrated. More than 80% of the chemical processing and refining capacity of cobalt is located in China, which after Glencore, is also the largest cobalt miner inside the DRC. Roskil says a core driver of BMW’s direct to mine strategy has been to minimise exposure to DRC cobalt production and also to increase control, transparency and auditability of its cobalt supply. Another reason BMW is looking outside central Africa is that much of the DRC’s cobalt is already tied up. Core supplier Glencore could do for cobalt what it did for zinc – double the price Last month Tesla reportedly signed a deal with Glencore for 6,000 tonnes of DRC cobalt destined for its new Shanghai factory. Although the Tesla deal is relatively small and remains unconfirmed (as were previous agreements) it casts doubt on pronouncements from Tesla that it’s close to eliminating cobalt from its batteries altogether and claims that its current generation NCA technology uses much less than even the most thrifted NCM chemistries (8 parts nickel for every one cobalt). Even without Tesla on the books, already more than 90% of Glencore’s DRC cobalt production are locked up in long-term agreements Glencore already has three other large, long term deals in place, with Korean battery manufacturer SK Innovation for 30,000 tonnes (enough to make 2m EVs with today’s cathode technology), Belgian chemicals giant Umicore and China’s GEM, a battery recycler. Benchmark Mineral Intelligence, a battery supply chain and price reporting company, estimates that even without Tesla on the books already more than 90% of Glencore’s DRC cobalt production are locked up in long-term agreements. Sisters of the Good Shepherd A proposal from a New York charity – Sisters of the Good Shepherd – which was supposed to be voted on at Tesla’s annual shareholder meeting which was scheduled for July 7 but postponed due to covid-19, called for an investigation into Tesla’s sourcing of cobalt. A representative of the Sisters told S&P Global Market Intelligence a Tesla-Glencore deal “seems to be inconsistent with their messaging around reducing their use of cobalt, and what we want to see is stronger implementation of human rights.” Roskill says while BMW now has deals in place for 100% of its needs, the company has not shied away from the fact that completely by-passing DRC production is almost unachievable given the scale of cobalt required in future (factors of current production before the end of the decade). This is evident in several initiatives that BMW Group is a part of, such as the Responsible Cobalt Initiative and its Cobalt for Development study in partnership with BASF, Samsung SDI and Samsung Electronics. Its involvement in these projects suggests the automotive manufacturer potentially needs to procure additional cobalt from DRC mines in future, though is focussed on a long-term strategic approach to sustainability in the region. EVs only recently overtook mobile phones and super-alloys for the aviation industry as the main source of demand for cobalt. Tesla, alongside Google, Apple and others, were sued by a human rights group in December about artisanal cobalt mined under unsafe and unethical conditions, including the use of child labour, entering their supply chains. The new arrangement is likely to add further opacity to the supply chain and hinder moves to formalise the artisanal sector At the beginning of the year the DRC government announced the Enterprise Generale du Cobalt (EGC) whereby state-owned miner Gecamines becomes the monopoly buyer of cobalt from small scale miners. EGC is set to kick-off within two months but Benchmark says few details have been revealed and rather than providing greater transparency “particularly in relation to how the material is to be traced and whether independent companies will be allowed to audit the process, the new arrangement is likely to add further opacity to the supply chain and hinder moves to formalise the artisanal sector.” Mutatis Mutanda Cobalt remains by far the most expensive component of EV batteries. After hitting near decade highs in early 2018 above $100,000 per tonne, prices for cobalt used in the global battery supply chain are down 70%. Glencore’s decision to mothball its Mutanda mine in the Congo, the world’s largest responsible for 20% global output, breathed life into the market, but the metal remains stuck in the early $30,000s. Benchmark’s June cobalt price index shows prices gaining 3.2% month on month to $31,300 a tonne (100% Cu basis), but the London-based price reporting agency warned of demand weakness and receding supply fears as raw material volumes from the DRC shipped via South Africa returns to the market.
berber1: What you have to bear in Mind that in 2019 GLEN share price reached 340p. Three months ago it was at 240p. The world is opening up again very fast, time to buy or you will be left behind. there 305 to 100%% possible rise. GLA
sarkasm: Tempted by the Glencore share price? Here’s what I think you need to know Rupert Hargreaves | Sunday, 5th July, 2020 | Since the beginning of the year, the Glencore (LSE: GLEN) share price has dropped more than 29%. After this decline, the stock looks cheap compared to its historical pricing. However, like so many other businesses, Glencore has been severely impacted by the coronavirus crisis. The company is facing several other significant headwinds as well. Glencore share price concerns Glencore is the world’s biggest commodities trader. It shifts millions of tonnes of metals, minerals and oil across the globe. This gives the company a relatively defensive nature. The world will always need commodities like oil and copper, and Glencore has the size and contacts required to procure and ship these resources at the lowest possible costs. But the business also operates in some grey legal areas, and the lawsuits are mounting up. The latest is a criminal investigation into the company over its failure to prevent alleged corruption in the Democratic Republic of Congo, where it mines copper and cobalt. The group is also being investigated by the Serious Fraud Office over “suspicions of bribery” in December 2019 These legal actions have had a meaningful negative impact on the Glencore share price. It doesn’t look as if these investigations will be resolved anytime soon either. If it is found guilty in any of these investigations, the company’s ability to do business in certain countries may be restricted. That could have an impact on profitability, which would lead to further selling of the Glencore share price. Global leader Still, even if the company is found guilty, the size of its operations should insulate it from the worst of the fallout. There are few, if any, other companies that have access to their same kind of trading infrastructure as Glencore. As such, now may be a good time for risk-tolerant investors to snap a share of this business at a low price. The company’s earnings might drop substantially this year, but they should recover in 2021, according to analysts. This depends on the global economic recovery. However, policymakers around the world are planning large infrastructure spending plans to get the global economy moving again after the coronavirus crisis. The Glencore share price could benefit significantly from these actions as the demand for its commodities increases. Also, the company has historically returned a significant amount of profits to investors with dividends or share buybacks. This may continue when the crisis is over. Management still owns a large percentage of the group’s outstanding shares. Shareholders should benefit from this in the long run. If you like the look of the Glencore share price but are worried about the company’s legal problems, it may be best to own the stock as part of a well-diversified portfolio. Doing so may enable you to benefit from any upside while minimising downside risk. The Motley Fool
la forge: The Glencore share price is up 51% since the market crash. I think it’s a bargain buy. Matthew Dumigan | Friday, 19th June, 2020 | More on: GLEN View of a gold mine from above Image source: Getty Images. The 2020 stock market crash presented an ideal buying opportunity for investors looking to pick up a bargain or two. In the depths of the sell-off, the FTSE 100 index lost 32% of its value. On top of this, many quality UK shares were trading far below average historic valuations. That still remains the case for numerous companies listed in the index today and one that I think may have been largely overlooked is Glencore (LSE: GLEN). The Glencore share price The commodity trading and mining company saw its share price tumble by 52% in the depths of the market crash. Since then though, the shares have recovered much of their value. That said, it’s worth noting that the company’s valuation is still down by around 26%. Right off the bat, the shares appear to offer a wide safety margin. What’s more, they don’t appear overvalued relative to other miners in the index, with a forward P/E of 13.5. Since flotation on the London Stock Exchange in May 2011, the Glencore share price has had a bumpy ride. To illustrate, those who bought shares on day one would have lost 85% of their initial investment when the company’s valuation hit rock bottom on 15 January 2016. However, if you’d invested around that time, you’d currently be sitting on approximately 130% gains. Stable position In late April, Glencore released its first-quarter 2020 production update. The company reassuringly announced that most of its operations had not seen any material impact from the pandemic. However, government restrictions in Canada, South Africa, Colombia and Peru have caused some disruption. In the report, Glencore also highlighted the opportunities that have arisen for its marketing business as a result of the volatile and complex commodity trading environment. Success here has enabled the company to generate annualised earnings in line with its long-term guidance range. Positive future outlook Things look good moving forward too. At the beginning of the week, news surfaced of a deal struck between Tesla and Glencore for batteries. The agreement stipulates that the electric car manufacturing company will buy cobalt from the FTSE 100 miner for use in its new car plants. With Glencore being the largest industrial supplier of cobalt in the world, I think the long-term partnership could prove a catalyst for further growth in the company. Moreover, as the global economy recovers, I expect activity in the resources sector to swiftly return to pre-pandemic levels. If so, investor sentiment towards mining stocks is likely to improve, causing share prices to rise. In fact, analysts at Deutsche Bank have already hiked their price targets for numerous miners on the back of strong demand in China. Overall, given the company’s strong liquidity position and resilient business model, I think Glencore is more than capable of navigating the current challenges facing the sector. As such, now could be an ideal time to buy the shares at a reduced valuation and hold them for the long term. Motley Fool UK
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