Glencore learns lessons from commodities rout
Ivan Glasenberg, Glencore’s chief executive, yesterday admitted that the miner-cum-trader had “learnt lessons” during a tumultuous year for the natural resources sector and promised to keep debt levels lower after racking up a $5 billion (CHF4.99 billion) net loss for 2015. Shares in Glencore, which he built into a formidable commodities trading house while snapping up mining assets, plunged to their lowest value last year since the company’s 2011 flotation as a commodities rout intensified and investors fretted about its large debt load. Glasenberg said Glencore, following its abrupt move last September to cut its borrowings, was on track with plans to reduce net debt from $25.9 billion to between $17 billion and $18 billion this year, and $15 billion in 2017. Disposals including the sale of a minority stake in Glencore’s agriculture business are expected to raise up to $5 billion, he added. “The balance sheet has to be structured for operating in a ...
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