The seasoned trader and competitive speed walker on Wednesday blamed “short-term” hedge funds which did not “understand” his business for attacking Glencore's share price, and said it was speculators who were pushing commodity prices lower.
Glencore's debt has been downgraded to one notch above junk by Standard & Poor's because of the “challenging outlook” for the mining industry and increasing uncertainty about demand from China, the world's biggest consumer of raw materials.
No one, the initial public offering pitch went, had Glencore's secret sauce: the insight into commodities markets claimed by chief executive Ivan Glasenberg and his close-knit group of rambunctious traders.
Ivan Glasenberg, chief executive, said Glencore was stepping up its debt reduction programme, and aiming to resume dividend payments next year, but the damage inflicted on the company by the commodities slump was laid bare at its interim results.
Americano Nickel Ltd. (ANL) acquired Falconbridge Dominicana (Falcondo) from Glencore Canada Corp. Under the agreement, the Dominican government will continue to receive more than 50% of the profits generated by ferronickel production.
Last week, Brazil's Vale took $9.3bn of writedowns on nickel, coal and thermal coal assets. Underlying earnings at Glencore's mining operations, slumped 38 per cent to $6bn, hit hard by the impact of falling prices. This was in contrast to the ...