Glencore reviews London listing as miners sour on | World Mining
- Analyst
- Mar 11
- 3 min read
Glencore reviews London listing as miners sour on – World Mining News
Unlock the Editor’s Digest free of charge
Roula Khalaf, Editor of the FT, selects her favorite tales on this weekly e-newsletter.
Glencore is reviewing whether or not to ditch its London listing, paving the way in which for a potential transfer to New York and threatening the UK market’s historic standing as a magnet for the worldwide mining industry.
Chief government Gary Nagle stated the mining group, one of the 20 Most worthy members of the blue-chip FTSE 100 index, was assessing whether or not different exchanges could be “better suited to trade our securities”.
“We want to ensure that our securities are traded on the right exchange, where we can get the right valuation,” he stated on Wednesday after the company disclosed a review of its listing alongside its annual outcomes. “If there’s a better one, and those include the likes of the New York Stock Exchange, we have to consider that.”
The departure of Glencore, whose initial public offering in 2011 was then London’s greatest listing, could be a extreme blow and additional loosen the market’s grip on a sector that has long been central to its identification.
Miner BHP switched to a secondary London listing in 2022, whereas rival Rio Tinto has launched a review of its choices after dealing with calls from an activist shareholder to maneuver its main listing from London to Sydney.
Glencore declined to remark on a most popular venue ought to it go away London, however in 2023 the group thought of splitting off its coal business and listing the unit in New York earlier than shelving the plan last yr.
Recommended
Historically, New York has not been a draw for giant diversified mining firms, with copper producer Freeport-McMoRan and gold miner Newmont among the many solely giant teams listed on Wall Street.
But a better willingness by US buyers to back fossil fuel producers has burnished its credentials as a potential venue. Its appeal has additionally been sharpened by US President Donald Trump’s administration pledging to cut crimson tape for companies.
George Cheveley, a fund supervisor centered on mining at UK asset supervisor Ninety One, stated: “With Trump in charge, the US is clearly a more friendly market towards fossil fuels.”
But he added: “There’s deeper, wider problems at Glencore, which a listing in the US doesn’t necessarily solve,” pointing to questions over whether or not it will be higher for the group to spin off its coal business, which has been trading on a low a number of.
The London Stock Exchange has been hit by a sequence of high-profile departures lately, together with playing group Flutter, which owns Paddy Power, and building supplies company CRH.
Last yr, 88 firms delisted or transferred their main listing from London’s essential market with solely 18 taking their place, in accordance with the London Stock Exchange Group.
Recommended
Shares in Glencore, which are actually decrease than when the group listed, fell 7 per cent on Wednesday, as its annual earnings have been hit by the hunch in thermal coal costs to their lowest degree since 2021.
A drop in coal costs wiped $3bn off its earnings in 2024, Glencore stated, including that it was reviewing attainable manufacturing cuts. Its adjusted earnings earlier than curiosity, tax, depreciation and amortisation fell 16 per cent last yr to $14.4bn in contrast with 2023.
It reported a $1.6bn loss for 2024, in contrast with internet income of $4.3bn the earlier yr. Glencore additionally introduced dividend funds of $1.2bn, barely under analysts’ expectations, together with a $1bn share buyback.
…
Stay forward of the curve with the newest information in Mining and Minerals. Our web site is your final vacation spot for the best critical mining information.
Comments