Glencore Investor Update
12 December 2017
Today, Glencore is hosting an investor update call at 1:00pm (UK). Presentation slides will be available from 12:00pm (UK). Highlights include:
Compelling commodity mix
- Leading producer of “Tier 1” commodities: copper, cobalt, nickel, zinc & thermal coal
- “Tier 1” commodity outlooks underpinned by persistent supply challenges and robust demand
- Best placed large cap resources company for the Electric Vehicle revolution
Cash generative & unique business model
- “Tier 1” Industrial Assets – sustainably low-cost & long-life
- Marketing is highly cash generative across the cycle
- 2017 Marketing EBIT guidance of c.$2.8bn
- 2018 illustrative EBITDA of c.$16.2bn at spot/forward prices
Able and willing to grow our business
- We define growth as growth in cash flows
- Reactivating idled capacity when appropriate
- Capital efficient brownfield options
- Bolt-on acquisitions focused on existing commodities/geographies
- Strong track record of investment
Conservative financial policy
- Optimal Net debt range of $10-16bn, Net debt /EBITDA < 2.0x through the cycle
- 2018 Distribution policy, in respect of 2017 cash flows, comprises fixed $1bn base distribution from Marketing plus a minimum payout of 25% of Industrial FCF
- Prudent reinvestment and recycling of capital
Ivan Glasenberg, CEO, commented:
“Glencore provides diversified exposure to the most attractive commodities, produced by our long-life/low cost assets. We will continue to focus on creating value through capital efficient growth within a conservative balance sheet structure. Partnerships to grow the business will remain a key element of our approach. We look to the future, confident in our ability to continue to create superior returns for our shareholders.”
Details of the call and presentation material are detailed on our website: http://www.glencore.com/investors/investor-update-call-2017/
Please dial in 15 minutes prior to the start time using the number / conference ID below:
Confirmation Code: 7107181
London, United Kingdom: +44(0)20 3427 1914
National free phone - United Kingdom: 0800 279 5736
Johannesburg, South Africa: +2711 019 7076
National free phone - South Africa: 0800 991 539
Hong Kong, Hong Kong: +8523071 3093
National free phone - Hong Kong: 800 905 743
New York, USA: +1646 254 3360
National free phone - USA: 1877 280 2342
Sydney, Australia: +61(0)2 9253 5963
National free phone - Australia: 1800 027 830
Zurich, Switzerland: +41(0)44 580 7216
National free phone - Switzerland: 0800 345 603
A replay of the call will be available on 12 December until 11 January 2018.
Replay Passcode: 7107181
London, United Kingdom: +44 (0) 207 660 0134
Johannesburg, South Africa: +27 11 062 3065
Hong Kong, Hong Kong: +852 3008 0334
Zurich, Switzerland: +41 (0) 43 547 8002
New York, USA: +1 719-457-0820
Toronto, Canada: +1 647 436 0148
Sydney, Australia: +61 (0) 2 9101 1954
For further information please contact:
t: +41 41 709 2880
m: +41 79 737 5642
t: +41 41 709 27 14
m: +41 79 543 38 04
t: +41 41 709 2462
m: +41 79 904 3320
Glencore LEI: 2138002658CPO9NBH955
Notes for Editors
Glencore is one of the world’s largest global diversified natural resource companies and a major producer and marketer of more than 90 commodities. The Group's operations comprise around 150 mining and metallurgical sites, oil production assets and agricultural facilities.
With a strong footprint in both established and emerging regions for natural resources, Glencore's industrial and marketing activities are supported by a global network of more than 90 offices located in over 50 countries.
Glencore's customers are industrial consumers, such as those in the automotive, steel, power generation, oil and food processing sectors. We also provide financing, logistics and other services to producers and consumers of commodities. Glencore's companies employ around 155,000 people, including contractors.
Glencore is proud to be a member of the Voluntary Principles on Security and Human Rights and the International Council on Mining and Metals. We are an active participant in the Extractive Industries Transparency Initiative.
Important notice concerning this document including forward looking statements
This document contains statements that are, or may be deemed to be, “forward looking statements” which are prospective in nature. These forward looking statements may be identified by the use of forward looking terminology, or the negative thereof such as “outlook”, "plans", "expects" or "does not expect", "is expected", "continues", "assumes", "is subject to", "budget", "scheduled", "estimates", "aims", "forecasts", "risks", "intends", "positioned", "predicts", "anticipates" or "does not anticipate", or "believes", or variations of such words or comparable terminology and phrases or statements that certain actions, events or results "may", "could", "should", “shall”, "would", "might" or "will" be taken, occur or be achieved. Such statements are qualified in their entirety by the inherent risks and uncertainties surrounding future expectations. Forward-looking statements are not based on historical facts, but rather on current predictions, expectations, beliefs, opinions, plans, objectives, goals, intentions and projections about future events, results of operations, prospects, financial condition and discussions of strategy.
By their nature, forward looking statements involve known and unknown risks and uncertainties, many of which are beyond Glencore’s control. Forward looking statements are not guarantees of future performance and may and often do differ materially from actual results. Important factors that could cause these uncertainties include, but are not limited to, those discussed in Glencore’s 2016 Annual Report.
Neither Glencore nor any of its associates or directors, officers or advisers, provides any representation, assurance or guarantee that the occurrence of the events expressed or implied in any forward-looking statements in this document will actually occur. You are cautioned not to place undue reliance on these forward-looking statements which only speak as of the date of this document. Other than in accordance with its legal or regulatory obligations (including under the UK Listing Rules and the Disclosure and Transparency Rules of the UK Financial Conduct Authority and the Rules Governing the Listing of Securities on the Stock Exchange of Hong Kong Limited and the Listing Requirements of the Johannesburg Stock Exchange Limited), Glencore is not under any obligation and Glencore and its affiliates expressly disclaim any intention, obligation or undertaking to update or revise any forward looking statements, whether as a result of new information, future events or otherwise. This document shall not, under any circumstances, create any implication that there has been no change in the business or affairs of Glencore since the date of this document or that the information contained herein is correct as at any time subsequent to its date.
No statement in this document is intended as a profit forecast or a profit estimate and no statement in this document should be interpreted to mean that earnings per Glencore share for the current or future financial years would necessarily match or exceed the historical published earnings per Glencore share.
This document does not constitute or form part of any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for any securities. The making of this document does not constitute a recommendation regarding any securities.
The companies in which Glencore plc directly and indirectly has an interest are separate and distinct legal entities. In this document, “Glencore”, “Glencore group” and “Group” are used for convenience only where references are made to Glencore plc and its subsidiaries in general. These collective expressions are used for ease of reference only and do not imply any other relationship between the companies. Likewise, the words “we”, “us” and “our” are also used to refer collectively to members of the Group or to those who work for them. These expressions are also used where no useful purpose is served by identifying the particular company or companies.