Swiss mining company Glencore Plc, which has a debt burden of $ 30 bn., Said that trade was stronger in the third quarter, which is why the company keeps its forecast for annual profit amid a collapse in commodity prices, reported Bloomberg.
Adjusted earnings before interest and taxes will be between 2.5 and 3.5 billion. Dollars this year, the Swiss company said on Wednesday, confirming its forecast in August. In trading business has “better revenues from metals and minerals and agricultural products,” she said. The company said it would cut production of honey with another 55 thousand. Meters. t the end of 2017
Glencore announced that it will aim to cut borrowing 5 billion. Dollars to 25 billion. Dollars by the end of the year, while at the same time seeks to net financing of 40 billion. Dollars. Billionaire CEO Glasenberg Iva closes coal, copper and zinc mines in an attempt to cope with the collapse in prices, which affects the profits of the largest mining companies. Glencore’s shares rose 85 percent after it plunged to a record low on 28 September. However, the company has taken appropriate action to allay investor fears about its ability to reduce the debt burden.
Based in Baar, Switzerland, the company announced late Tuesday that it was selling a share of future silver production from Antamina mine on Silver Wheaton Corp. in a deal that includes a prepayment of 900 million. dollars.
Glencore’s shares rose 6.2 percent at 8:06 local time on Wednesday in London. The shares recorded a decline of 57% since the beginning of the year, making the company the worst performing index in the FTSE 100. its rival Anglo American Plc reported a fall of 51% for this year.
The largest mining companies in the world reported weaker profits amid slowing economic growth in China, the largest buyer of goods. This reduces the demand for raw materials and increases the oversupply. Copper has dropped by about 18 percent this year, the London Metal Exchange and reached a six-year low in August.
Glencore said that repaid three bonds in the amount of 1.95 billion. Dollars from the end of the third quarter and has bought back bonds for another 400 million. Dollars.
‘Realistic look, this is the best outcome of a very volatile quarter that anyone could imagine, “said analyst Ian Rusov and David Butler of Barclays.
In September, Glencore announced it will reduce its production of copper from mines in Zambia and Congo 400 thousand. Tons. Now the company raised its assessment to 450 thousand. Tonnes and announced it was closing mines will increase production in 2015 and 2016
The extraction of copper from mines rose by 1% to 396.6 thousand tons in the three months to the end of September, more than 391,300 tons last year, according to Glencore. The company, which is the largest supplier of coal for power stations, adding that the total yield of the fuel fell by 15% to 34 mln. Tons in the period.