Join +750K new investors every month who copy stock picks from billionaire's portfoliosSign Up Free

UPDATE 1-Glencore steps up debt-reduction plan, reports drop in copper output

Published 2016-02-11, 02:56 a/m
© Reuters.  UPDATE 1-Glencore steps up debt-reduction plan, reports drop in copper output
WPM
-
HG
-
GLEN
-
FNV
-
KAT
-

(Adds detail, background)
By Eric Onstad
LONDON, Feb 11 (Reuters) - Glencore GLEN.L has taken
another step to reduce its debt by selling $500 million of
future precious metals output and reported a drop in production
of its most lucrative product, copper.
The Swiss-based mining and trading company said overnight
that it had agreed to sell future precious metals production
from its Antapaccay mine in southern Peru to Toronto-based
Franco-Nevada FNV.TO
The Antapaccay deal follows Glencore's agreement in November
to sell future silver output to Silver Wheaton Minerals SLW.TO
for $900 million in cash.
Glencore reported on Thursday that fourth-quarter copper
output fell 5.7 percent to 374,700 tonnes after it shut down
mines to counter sliding prices of the metal widely used in
power and construction.
The company announced plans last September to suspend
400,000 tonnes of copper output at its Katanga Mining KAT.TO
unit in Democratic Republic of Congo and at Mopani Copper Mines
in Zambia over an 18-month period.
The moves were part of efforts to regain the confidence of
investors after Glencore came under pressure to cut net debt of
about $30 billion -- one of the highest debt piles in the sector
-- as prices for commodities such as copper and coal hit
multi-year lows.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.