|Bid||0.0000 x 0|
|Ask||0.0000 x 0|
|Day's range||3.1000 - 3.1900|
|52-week range||2.6600 - 4.4900|
|Beta (3Y monthly)||1.61|
|PE ratio (TTM)||50.68|
|Forward dividend & yield||0.20 (6.54%)|
|1y target est||N/A|
(Bloomberg) -- For years the agriculture industry has been expecting a wave of consolidation that just hasn’t come. To battle razor-thin margins, the world’s top crop traders have come up with a new strategy: working together.Rivals Archer-Daniels-Midland Co. and Cargill Inc. now have a soybean joint venture in Egypt and recently swapped grain elevators in the U.S. Midwest. The two firms, along with Bunge Ltd., Louis Dreyfus Co., Glencore Plc and China’s Cofco International Ltd. are also teaming up in a blockchain technology project that will streamline shipping transactions and reduce costs.“The name of the game in traditional ag services and oilseeds is consolidation,” Ismael Roig, ADM’s president for Europe, Middle East and Africa, said Wednesday at the Global Grain conference in Geneva. “Consolidation is easier said than done, and there aren’t many large companies with which you can do a large consolidation, so what we’ve been working on is a lot of joint ventures and alliances.”The buzz about consolidation has waned since President Donald Trump’s trade wars hurt companies’ ability to forecast trends and therefore properly value assets. At the same time, Glencore’s agriculture unit, which had previously approached Bunge, has gone quiet amid a Department of Justice investigation into the parent company. Chris Mahoney, the chief executive officer that laid out Glencore’s agriculture ambitions, also retired.Agricultural commodity merchants have struggled to make money as years of bumper crops curbed the volatility traders need to thrive. At the same time, competition has increased as more companies have entered the market. That spurred speculation the industry would consolidate in megamergers.“One of the ways to do it is to try to consolidate through joint ventures, sharing best practices, so you are getting these minor areas where companies are working together,” said Jonathan Kingsman, author of ‘Out of the Shadows: The New Merchants of Grain,’ a newly launched book about agricultural commodity traders. “This will continue because the megamergers can’t happen at the moment.”ADM plans to focus on digesting recent acquisitions after buying the animal nutrition unit of France’s InVivo for about $1.8 billion, a deal that was completed earlier this year, Roig said. Juan Luciano, who leads the Chicago-based firm, said earlier this year that ADM’s five-year plan was low risk and excludes deals above $100 million or $200 million.“With the level of acquisitions that we had, I don’t think you see ADM being a very aggressive investor in the next few years,” Roig said, adding that the firm was focused on better utilizing its grain and oilseeds assets, driving efficiencies and growing organically.The agriculture industry is just now starting to follow the path of energy markets, where companies have established partnerships and joint ventures to help spread risk and reduce costs. Roig cited a study of more than 300 oil projects, of which 70% were joint ventures.While the mega mergers haven’t happened, there are still medium and small deals taking place. Crop trader Andersons Inc. this year completed a $300 million acquisition of Lansing Trade Group. Louis Dreyfus recently sold all its inland elevators in Canada to Parrish & Heimbecker.“These discussions are happening a lot, but it’s more about swapping than outright consolidation or big trades,” Pat Bowe, chief executive officer of Andersons, said in an interview in Chicago last week. “The blockbusters? On that front it’s kind of quiet, but I think swaps and individual asset trades will continue.”(Updates with comment in sixth paragraph.)To contact the reporter on this story: Isis Almeida in Chicago at firstname.lastname@example.orgTo contact the editors responsible for this story: Tina Davis at email@example.com, Reg Gale, Pratish NarayananFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
The unit said the smelter, which started in 1966, had been 'uneconomic' since the Brunswick mine closed six years ago. "We have thoroughly assessed all our options and come to the unavoidable conclusion that the smelter is simply not sustainable, regardless of the recent labour dispute," said Chris Eskdale, Canadian unit's head of zinc and lead assets. Earlier on Wednesday, the United Steelworkers (USW) union claimed that over half of the smelter's employees, fighting to improve health and safety standards, were locked out since April 24.
First Cobalt Corp is in advanced talks with Canada's Ontario province to finance the $37.5 million required to restart its idled cobalt refinery, President and Chief Executive Officer Trent Mell said in an interview on Tuesday. If successful, such a deal would reduce First Cobalt's funding reliance on Glencore Plc, which in July agreed to extend $45 million in loans to develop the project in stages. The plant, located about 600 kilometres (373 miles) from the U.S. border in Cobalt, Ontario, would be the sole North American producer of refined cobalt for the electric vehicle market and lessen dependence of U.S. end-users on China, where most of the world’s cobalt refining capacity is located.
Global grain traders are against banning soy purchases from newly deforested areas of Brazil's savannah region, that would duplicate a similar moratorium in place for the Amazon rainforest, an industry association said on Thursday. "There is no intention of doing this," Lucas Brito, executive assistant at grain exporters group Anec, told Reuters on the sidelines of an industry conference in Campinas.
Katanga Mining Limited, a big Congolese copper and cobalt producer, said on Thursday it would raise around $7.6 billion Canadian dollars ($5.8 billion) via a rights issue as part of a debt-for-equity swap with parent Glencore. Katanga Mining will subsequently owe Glencore $1.5 billion, reducing its debt from $7.7 billion after experiencing setbacks including a fall in the price of cobalt from record levels of $95,000 per tonne in 2018 to around $35,000 now. Thursday's statement said Glencore, which owns approximately 86.3% of Katanga, had agreed to swap $5.8 billion in debt for equity, which will raise its stake further in the firm.
Glencore (LON:GLEN) is a large cap integrated producer and marketer of commodities, such as metals and minerals, energy products and agricultural product. It a8230;
With its low valuation and market-beating dividend yield, now could be the time to buy this FTSE 100 international commodity giant, argues Rupert Hargreaves.
Oil heavyweights and miners led the charge on London's FTSE 100 on Friday as Chinese factory data and a stronger than expected U.S. employment report helped the index to bounce back from its worst session in a month. The FTSE 100 advanced 0.8%, recouping almost all of its more than 1% drop in the previous session, while the FTSE 250's 0.7% advance was its best day in more than two weeks.
The boss of one of the world's biggest mining companies wants the industry to do more than talk about winning a social licence in an increasingly carbon constrained world. Rio Tinto Chief Executive Jean-Sebastien Jacques told the London Metal Exchange (LME) annual forum on Monday that mining needed to do more on the environmental, social and corporate governance (ESG) front in order to remain relevant and profitable as the world deals with climate change. "Lots of people are talking about it, but I'm not sure there is action," Jacques said.
Cobalt supply will remain robust despite a price slide that has already led to the closure of a major mine, Russia's Norilsk Nickel said, as most is produced as a byproduct of more buoyant metals like nickel and copper. Prices of the battery metal surged in 2017 and 2018 on expectations for an electric vehicle revolution, but have fallen this year due to excessive supply and the impact of the U.S.-China trade war. In August global mining and trade giant Glencore said it would shutter its Mutanda mine in the Democratic Republic of Congo from year-end for two years due to low cobalt prices.
(Bloomberg) -- Contenders for the biggest job in commodity trading, the head of Glencore, will be on parade this week. Outgoing CEO Ivan Glasenberg wanted his successor to look “like me,” and the main aspirants do.Glasenberg announced last December his plan to retire in the next few years, firing the starting gun on a closely watched race. The three most likely choices are Gary Nagle, Kenny Ives and Nico Paraskevas. They’re barely known outside Glencore, however, and as the global metals industry descends on London for LME Week, miners, traders and investors will be jostling to find out more.The passage of the chief executive officer’s baton at Glencore is more than another corporate transition. The firm is the world’s largest commodity trader, dominating transactions in most industrial metals, including copper, zinc and aluminum. The CEO of the Swiss-based, London-listed company has had an outsized role in shaping the world of commodity trading since Glencore was founded by Marc Rich in 1974.Glasenberg, 62, in charge since 2002, hasn’t announced the candidates to succeed him. He has said, though, that there are “three to four guys” on the shortlist; that next CEO should be from a younger generation; and that “I hope he looks like me”. No women are in the running.While three candidates top the list, nothing is final, according to a person familiar with the matter who declined to be identified discussing a confidential issue. Two of the executives have early career paths that broadly mirror Glasenberg’s, having trained in South Africa as accountants. Unlike the CEO’s generation of senior traders, many of whom became billionaires in the company’s 2011 flotation, none has a large equity stake in the company.The succession will depend in part on how and when Glasenberg leaves. Glencore’s dealings in Nigeria, Venezuela and the Democratic Republic of Congo are under investigation in the U.S., and that has triggered speculation the CEO may step aside sooner than he has envisaged.If that happened, one of the company’s older hands might take the reins—for example Peter Freyberg, recently elevated to oversee the company’s industrial operations, or Tony Hayward, the former BP CEO who is currently Glencore’s non-executive chairman.Here are the three lead contenders:Gary NagleIf looking like Glasenberg is a job requirement, Nagle may be the man—some who know him call him a “mini-Ivan.” He’s South African like his boss, and similarly has degrees in commerce and accounting from the University of Witwatersrand. Also like Glasenberg, he built his career by rising through the ranks of Glencore’s coal department.Nagle, 44, is also the most asset-focused of the likely successors. That could be an advantage as mining accounts for an increasing share of Glencore’s income and the company moves away from its roots as a pure trader.Nagle joined Glencore in 2000 as an asset manager in the coal department, going on to become chief executive of its Colombian coal operation, Prodeco, in December 2007. Following the acquisition of Xstrata, he was moved to run the company’s South Africa-focused alloy assets, and last year was named head of coal assets.Kenny IvesIves, Glencore’s head of nickel since 2012, is probably the candidate best known outside the company’s headquarters in Baar, Switzerland. Gregarious and well liked in the metals industry, he has a traditional trader’s regard for personal connections. In an interview with a student at a Swiss university, he said: “When I got involved in this business back in the ‘90s, I remember my boss at the time saying to me, ‘Kenny, this business is about three things: relationships, relationships and relationships.’ It’s true.”Ives grew up in Brighton, southern England, where he paid his school fees “in cash out of an old Tesco carrier bag,” according to an interview with an alumni website. He joined Glencore in 1998, straight out of university, and for the first decade traded copper concentrates, spending a year in China.In the Glencore mold, he’s a sports enthusiast who captained his school soccer team and regularly leads morning or lunchtime runs.Ives’s time at Glencore hasn’t been without missteps. According to several current and former colleagues, he clashed with the then bosses of the copper, lead and zinc department, Telis Mistakidis and Daniel Mate, leading to his transfer to the grain division in 2008, from where he moved to nickel.Nico ParaskevasA Greek citizen who spent much of his career in Africa, Paraskevas is, like Glasenberg, a chartered accountant and a graduate of the University of Witwatersrand. He also spent time in the coal department, working for Glencore’s South African unit Shanduka from 2007 to 2009.Paraskevas moved to the Democratic Republic of Congo as finance and then commercial director of Glencore’s copper unit there, later becoming CFO of Katanga Mining, based in Johannesburg.Last year, Katanga was fined by the Ontario Securities Commission for misstating its accounts. Most of the conduct that was censured occurred after Paraskevas left as CFO in November 2012. The company did acknowledge, however, that it “failed to maintain adequate internal controls” from Jan. 1, 2012 until March 31, 2017, a period that overlapped slightly with Paraskevas’s tenure. He hasn’t been accused of wrongdoing.He led the disposal of Las Bambas, the Peruvian copper project that Glencore sold as part of a deal to get Chinese antitrust approval for the Xstrata acquisition. The timing of that deal was sweet for Glencore: It was consummated just before the copper market plunged. Still, Paraskevas remained relatively unknown to the wider world when he was elevated to run Glencore’s powerful copper trading division at the end of 2018.Colleagues say he’s calmer and a less dominating personality than his predecessor and fellow Greek national, Telis Mistakidis. He has overseen a less aggressive trading strategy by Glencore in the LME copper market. Paraskevas also has taken a more direct role in the trading of cobalt, a byproduct of Glencore’s Congolese copper mines that rapidly became one of the group’s highest-profile commodities.To contact the author of this story: Jack Farchy in London at firstname.lastname@example.orgTo contact the editor responsible for this story: Paul Sillitoe at email@example.comFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
The exporter-laden FTSE 100 recovered from early losses on Monday despite a rebound in sterling, boosted by gains in leading drug stocks and as prospects for a U.S.-China trade agreement powered miners and industrials. The blue chip index closed 0.1% higher, lagging peers on Wall Street and in Europe as a near 4% drop in HSBC after an underwhelming earnings update, and a slide in dollar earners, capped gains. The more domestically-focused FTSE 250 outperformed with a 0.5% rise ahead of a parliamentary vote on Prime Minister Boris Johnson's demand for a general election.
As part of the company's efforts to overcome problems in the politically volatile African state, Glencore in August laid out plans to separate its African copper business from its wider copper operations and halt production at its Mutanda copper and cobalt mine at the end of this year. Full-year 2019 copper output, excluding African copper, is expected to be around 1.010 million tonnes, while guidance for African copper was around 375,000 tonnes, making a total of just under 1.4 million tonnes versus previous guidance of around 1.45 million. Glencore's share price has been hard-hit with investors wary of its exposure to difficult regimes, while the price of the battery minerals found in them has been volatile.
Glencore on Friday reported a 4% drop in copper output so far this year and trimmed full-year guidance as it prepared to suspend some operations in the Democratic Republic of Congo. Production of battery mineral cobalt rose 21%, a third-quarter production report said, as the company increased output at its Katanga copper and cobalt mine, also in Congo. As part of the company's efforts to overcome problems in the politically volatile African state, Glencore in August laid out plans to separate its African copper business from its wider copper operations and halt production at its Mutanda copper and cobalt mine at the end of this year.
(Bloomberg) -- Glencore Plc, the world’s biggest commodity trader, said it will produce slightly less copper and zinc this year than previously forecast.Glencore now expects to produce about 1.01 million tons of copper from its non-African business, compared with an earlier forecast of about 1.025 million tons. It will aim to mine 1.11 million tons of zinc, down 7%.Key InsightsCrucially, Glencore’s African copper business, where it is implementing a turnaround plan, is on pace to achieve its latest annual production goal. Hitting the target in African copper is an important first step toward convincing the market that it can make the assets profitable.Glencore cited minor operational updates across its portfolio for the reduced copper target. Zinc was lowered because of a delayed restart of a Peruvian mine, the shuttering of a small mine in the country and poor ground conditions at its Tishinsky mine in Kazakhstan.There was no update on its fabled trading business. Earlier this year, Glencore said the marketing business was tracking toward the middle of its full-year profit guidance range, after adjusting for $350 million of non-cash cobalt losses.Get MoreGlencore also trimmed its ferrochrome output target for the year, after weak prices prompted it to extend a maintenance period.The company maintained its cobalt forecast of 43,000 tons this year. The company plans to shut its Mutanda mine, the world’s biggest cobalt producer, at the end of this year.Statement hereKey figures here(Updates with reasons for production cuts, other details)To contact the reporter on this story: Thomas Biesheuvel in London at firstname.lastname@example.orgTo contact the editors responsible for this story: Lynn Thomasson at email@example.com, Liezel HillFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
China is likely to become the first country in the world to start mining seabed minerals if the international rules for exploitation are approved next year, the head of the International Seabed Authority (ISA) said. The ISA has already signed 30 contracts with governments, research institutions and commercial entities for exploration phase, with China holding the most, five contracts. The body, which was established to manage the seabed resources by the United Nations Convention on the Law of the Sea (UNCLOS), is aiming to adopt seabed mineral exploitation rules by July 2020.
Rosneft Trading SA, a subsidiary of Russian oil producer Rosneft, has sold a 100,000 tonne cargo of contaminated oil to energy trader Vitol with a discount of more than $25 per barrel to dated Brent, traders said on Tuesday. The hefty discount is far more than Russian pipeline monopoly Transneft's offer of $15 per barrel to compensate for the excessive organic chloride content in oil.
Benchmark lead on the London Metal Exchange at around $2,200 a tonne is up nearly 9% so far this year compared with losses of 3%, 7% and 25% for copper , aluminium and zinc respectively. Behind lead's ascent to 15-month highs above $2,200 a tonne is Nyrstar's Port Pirie lead smelter in Australia, which halted production in May. It produced 160,000 tonnes of lead last year. In a recent production report, Nyrstar said lead output at 51,000 tonnes in the first half of the year was down 27% for the same period last year.
Benchmark lead on the London Metal Exchange at around $2,200 a tonne is up nearly 9% so far this year compared with losses of 3%, 7% and 25% for copper, aluminium and zinc respectively. Behind lead's ascent to 15-month highs above $2,200 a tonne is Nyrstar's Port Pirie lead smelter in Australia, which halted production in May. It produced 160,000 tonnes of lead last year. Analysts expect Port Pirie to produce only 90,000 tonnes of lead this year.
Peter Stephens thinks these two FTSE 100 (INDEXFTSE:UKX) stocks could offer higher returns than gold over the long run.