2018 results largely benefited from extraordinary coal earnings – which were driven by a combination of (unsustainable) price tailwinds and impressive unit cost control. However, there were various issues in copper, zinc and trading (collectively c.70% of gross asset value) – thereby warranting remedial measures. While the remedies may take some time to come into effect, management seems to have bought time via the announcement of attractive shareholder rewards.

21 Feb 2019
Buybacks + coal output cap = temporary consolation(?) for other issues

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Buybacks + coal output cap = temporary consolation(?) for other issues
Glencore plc (GLEN:LON) | 298 -14.7 (-1.6%) | Mkt Cap: 35,505m
- Published:
21 Feb 2019 -
Author:
Varun Sikka -
Pages:
4 -
2018 results largely benefited from extraordinary coal earnings – which were driven by a combination of (unsustainable) price tailwinds and impressive unit cost control. However, there were various issues in copper, zinc and trading (collectively c.70% of gross asset value) – thereby warranting remedial measures. While the remedies may take some time to come into effect, management seems to have bought time via the announcement of attractive shareholder rewards.