Stock Review: Glencore (GLEN:GBX169.68) offers 9th highest dividend yield 03 July 2020

STOCK REVIEW

Dateline: Friday July 03, 2020

Glencore PLC (L:GLEN), the 4th largest Mining company by market cap in the United Kingdom, is currently the 9th highest dividend yielding stock in the FTSE 100 Index . The dividend yield of 9.65% is 53.61 times the triple-A bond yield of 0.18%. The final dividend for FY 2019 was GBX8.11. Dividend for FY 2019 was up 4.9% from GBX7.73 in the previous year FY 2018.

Bullish Turning Point

Dividend Yield increases to 9.7%

Based on dividends of GBX16.37 per share for the trailing twelve months and the last price of GBX169.68 the dividend yield is 9.7%, a significant improvement from 9.4% on the previous day.

Stock Summary (traded in GBP)

Currency1 GBP = 1.25 USD Dividend Yield9.7%
Jul 03 closeGBX169.68SectorMining
Ave Daily Volume41,265,087 sharesShares Outstanding13,324,312,541
52-Week Range103.37 - 256.56Market CapGBP22.6 billion [USD28.2 billion]

ADR Summary (traded in USD)

Home ExchangeSwitzerland% of shares outstanding0.07%
CodeGLNCYRatio1 ADR equals 2 ordinary shares
ISINUS37827X1000TypeUnsponsored
CUSIP37827X100Jul 02 closeUSD4.24
*No. Held by Institutions4,756,947Ave Daily Volume306,163 ADRs
Number of shares equivalent9,513,894

*Total ADRs Held by Institutions 4,756,947; equivalent to 9,513,894 Glencore shares on issue. This represents 0.07% of total shares on issue.

Primary Exchange and Other Listings: Trading Currency and Volume (Excl ADR)

ExchangeTickerCurrencyLastADVTVol % of TotalToday's VI
LondonGLENGBX169.6841,326,15595.40.4
JohannesburgGLNZAR36.524,070,5644.50.2
Total100.00

1 GBX [Pence Sterling]= 4.7321 ZAR [South African Rand]

ADVT= Avg. Daily Volume of Trading; VI= Volume Index (1 is avg)

Financials Summary: EPS fell to -3.0c in FY2019

+ Net profit slumped from a loss of USD3.4 billion in FY2018 to a loss of USD404 million in FY2019.

+ Earnings Per Share (EPS) fell from 24.0c in FY2018 to -3.0c in FY2019.

Year ended DecFY2019FY2018FY2017
Sales (USD B)215.1220.5205.5
Pretax (USD)(888M)4.7B6.9B
Net (USD)(404M)3.4B5.8B
EPS (USD)(0.03)0.240.41

Click on links to download GLEN data

Financials in xls

News Archives Past 4 years in HTML

INDEX

SECTION 1 News In The Past Quarter

SECTION 2 Corporate Profile and Independent Ratings

SECTION 3 Today's Bullish Signals

SECTION 4 Ongoing Bullish Parameters

SECTION 5 Today's Bearish Signals

SECTION 6 Ongoing Bearish Parameters

SECTION 7 Insider Buying

SECTION 8 Glencore Board of Directors

SECTION 9 Dividend

SECTION 10 Financials FY 2019, Past 10 Years

SECTION 11 Peer Group Analysis & Ranking

SECTION 12 News Archives (Jun 2019 - Mar 2020)

Glossary

SECTION 1 News In The Past Quarter

1.1 Meetings

April 06: Glencore announces AGM

Glencore has announced its Annual General Meeting will take place on Wednesday, May 06.

1.2 Press Releases

April 08: Glencore: Second Price Monitoring Extn

A second and final Price Monitoring Extension has been activated in this security. The auction call period is extended in this security for a further 5 minutes.

Following the first price monitoring extension this security would still have executed more than a pre-determined percentage above or below the price of the most recent automated execution today. London Stock Exchange electronic order book users have a final opportunity to review the prices and sizes of orders entered in this security prior to the auction execution.

The applicable percentage is set by reference to a security's Millennium Exchange sector. This is set out in the Sector Breakdown tab of the Parameters document at www.londonstockexchange.com/tradingservices

Source: London Stock Exchange

1.3 People's News

Tue Apr 07, 2020

Glencore (L:GLEN) Non-Executive Director Peter Coates AO bought 80,000 shares worth GBP101,968 ($US125,154) on April 06. The purchase price was GBP1.27. The shares hit an 11-day high on the day.

SECTION 2 Corporate Profile and Independent Ratings

2.1 Activities

Glencore Plc is a diversified natural resources company. The Company operates in three groups: Metals and Minerals, Energy Products, and Agricultural Products. Glencore Plc offers its products and services around the world.

In FY 2019, the top earner of Revenue was Sale of commodities [24.5%] followed by Marketing activities [22.5%] at Rank 2 , Energy products [15.4%] at Rank 3 and Metals and minerals [9.8%] at Rank 4. In FY 2019, revenue growth was highest in Freight, storage and other services [8.8%] . In FY 2019, the top regional earner of Revenue was Asia [38.6%] followed by Europe [35.2%] at Rank 2 and The Americas [17.7%] at Rank 3. In FY 2019, revenue growth was highest in Africa [56.8%] followed by Oceania [44.7%] at Rank 2 and The Americas [3.2%] at Rank 3.

2.2 Segment Information

$US$US
Description2019-12-31% of Total2018-12-31% of TotalGrowth(%)
Metals and minerals84.5 B9.883.8 B9.40.8
Energy products132.8 B15.4139.3 B15.7-4.7
Corporate and other4 M024 M0-83.3
Marketing activities194.2 B22.5202.7 B22.8-4.2
Industrial activities42.7 B4.944.1 B5-3
Inter-segment eliminations-19.7 B-2.3-23.6 B-2.7-
Sale of commodities212.2 B24.5217.9 B24.6-2.6
Freight, storage and other services2.9 B0.32.6 B0.38.8
Total864.7 B75.1887.4 B75.1-2.6

Top Segments by Revenue and rank

In FY 2019, the top earner of Revenue was Sale of commodities [24.5%] followed by Marketing activities [22.5%] at Rank 2 , Energy products [15.4%] at Rank 3 and Metals and minerals [9.8%] at Rank 4.

Top Segments by Revenue growth and rank

In FY 2019, revenue growth was highest in Freight, storage and other services [8.8%] .

Regional Information

$US$US
Description2019-12-31% of Total2018-12-31% of TotalGrowth(%)
Revenue from third parties2-----
The Americas38.1 B17.736.9 B16.83.2
Europe75.7 B35.276.8 B34.8-1.3
Asia83 B38.694.6 B42.9-12.3
Africa8.2 B3.85.2 B2.456.8
Oceania10 B4.76.9 B3.144.7
Total215.1 B100220.5 B100-2.5

1 Adjusted to present mark-to-market movements on physical forward sales contracts within revenue (see note 1).

2 Revenue by geographical destination is based on the country of incorporation of the sales counterparty, however this may not necessarily be the country of the counterparty's ultimate parent and/or final destination of product.

Top Revenue Segments by Region and rank

In FY 2019, the top regional earner of Revenue was Asia [38.6%] followed by Europe [35.2%] at Rank 2 and The Americas [17.7%] at Rank 3.

Top Regional Segments by Revenue growth and rank

In FY 2019, revenue growth was highest in Africa [56.8%] followed by Oceania [44.7%] at Rank 2 and The Americas [3.2%] at Rank 3.

2.3 Contact Details

Websitehttp://www.glencore.com
Physical AddressBaarermattstrasse 3, PO Box 777, Baar, CH 6341, Switzerland
Phone+41 41 709 2000
Fax+41 41 709 3000
Emailinfo@glencore.com

2.4 Industry & Sector

Classification LevelName of Sector
Economic SectorBasic Materials
Business SectorMineral Resources
Industry GroupMetals & Mining

2.5 Independent Ratings

+ Top 100 Polluters:

According to environmental non-profit Carbon Disclosure Project (CDP) just 100 companies have been the source of more than 70% of the world's greenhouse gas emissions from 1988 to 2015. The CDP ranked Glencore PLC 43 [rank 1 is worst] in the top 100 polluters. Glencore PLC contributed .38% of global industrial greenhouse gas emissions in that period.

+ Top 40 Miners:

It is the 3rd largest by MCap among the PwC Top 40 Miners.

+ Industryweek 1000:

It is a new entrant in the Industry Week list of the world's largest 1000 manufacturers by Revenues in 2016, ranked 11.

+ FT 500:

It is the 9th largest by revenue in the FT Global 500.

SECTION 3 Today's Bullish Signals

3.1 Momentum Up 4.2% Past Week

Glencore outperformed the FTSE 100 index in 3 out of 5 days. The price ranged between a low of 166.74 on Friday, Jun 26 and a high of 174.54 on Thursday, Jul 02.

DayGlencoreClose price [GBX]Price change %Relative change %Comment
ThursdayOffers 12th highest dividend yield174.544.22.9Week-high of 174.54 Top Rise
WednesdayDrops 2.2%167.5-2.2-2.0Steepest Fall
TuesdayOffers 10th highest dividend yield171.220.91.8Price rise on beating relative strength
MondayAdds GBP386 million (US$478 million) in MCap, top heavyweight rise in Mining sector169.641.70.7Price/MAP50 above 1
FridayOffers 9th highest dividend yield166.74-0.5-0.7Week-low of 166.74

3.2 Momentum Up 0.7% Past Month

In the past quarter the week beginning Monday June 01 saw the highest weekly rise of 20.8% for a relative price increase of 13.8%.

The Best 3 weeks in the past quarter:

Mon-FriChange %FTSE 100 index Change %RPC %Vol Ind [1 is avg]
Jun 01-0520.8713.81.1
May 18-224.83.41.41.1
Apr 20-244.7-0.24.90.8

3.3 Rank in the top 7% by Relative Valuation in the United Kingdom market

DescriptionValueRank
Price to Sales0.1In Top 3%
Dividend Yield %9.7%In Top 7%

3.4 Uptrend

Beta > 1 combined with price rise. The Beta of the stock is 1.6.

Positive MACD:

- The Moving Average Convergence Divergence (MACD) indicator of 12-day Exponential Moving Average (EMA) of 169.86 minus the 26-day EMA of 166.9 is positive, suggesting a bullish signal.

3.5 Undervaluation

Dividend Yield:

Glencore stock is the ninth highest dividend yielding stock in the FTSE 100 Index.

Dividend Yield > Bond Yield of 0.18%:

The dividend yield of 9.65% is 53.61 times the triple-A bond yield of 0.18%. The times factor of 53.61 is above the benchmark factor of 0.67 times set by Benjamin Graham.

(All figures in %)

Dividend Yield9.65
Bond Yield0.18
Spread9.47

Dividend Yield of 9.7% > Index avg of 5.1%:

- The relative yield of the stock, defined by its yield of 9.7%, divided by average yield of dividend yielding stocks in the FTSE 100 Index of 5.1% is 190.3%. This suggests the stock is undervalued in dividend yield terms.

MCap/Total Assets:

- Tobin's Q Ratio, defined as MCap divided by Total Assets, is 0.2. Compared with the rest of the market the stock is undervalued and ranks in the top quartile of stocks by value of Q Ratio.

SECTION 4 Ongoing Bullish Parameters

4.1 Rank in the top 3% by Size in the United Kingdom market

DescriptionValueRank
Annual RevenueUSD215.1 billionIn Top 1%
Ave daily TurnoverGBP28.9 million (US$36 million)In Top 1%
MCapUSD28.2 billionIn Top 3%

4.2 Present Value of GBP1000 Invested in the Past 3 Months; The Best Period with PVGBP1000 > 1,593

PVGBP1,0003 mo ago
GLEN.LGBP1,594
Mining sectorGBP1,290
FTSE 100 IndexGBP1,137

4.3 Past quarter: price rise of 50.1%

3-Month price change of 50.1% for Glencore outperformed the change of 13.7% in the FTSE 100 index for a relative price change of 36.4%.

Price Change %Quarter
Glencore50.1
Mining sector29
FTSE 100 index13.7

4.4 Increased VWAP, up 83% in 5 years

In the past five years Volume Weighted Average Price (VWAP) has increased by 83.3% to GBX191.37. .

Past five years, 12 months ended Jul 03 (GBX)

YearHigh PriceVWAPLow Price
2020256.56191.37103.37
2019305.37268.84227.22
2018355.14310.92247.36
2017290.1220.99128.79
2016206.0104.4255.74

4.5 Satisfies one criteria of Benjamin Graham

- "A dividend yield of at least two-thirds the triple-A bond yield"; the stock's dividend yield is 52.7 times the triple-A bond yield of 0.2%.

4.6 Year-over-year (%) Change in Dividend:

Final dividend for FY 2019 was GBP8.11. The year-on-year change was up 4.9% from GBP7.73 in the previous year FY 2018.

FinalFY 2018FY 2019
Dividend (GBX)7.738.11

SECTION 5 Today's Bearish Signals

5.1 Downtrend

Price/Moving Average Price of 0.88:

- The Price/MAP 200 of 0.88 for Glencore is lower than the Price/MAP 200 for the FTSE 100 Index of 0.96.

- The price to 200-day MAP ratio is 0.88, a bearish indicator. In the past 200 days this ratio has been under 0.88, 93 times suggesting further downside. The 50-day MAP of GBX158.72 is lower than the 200-day MAP of GBX192.66, another bearish indicator.

Trailing Relative Strength (6 months) at 41 percentile:

- The stock has a 6-month relative strength of 41 in the United Kingdom market of 931 stocks, 5 units and 13 preference stocks which means it has underperformed 59% of the market.

5.2 Other Bearish Signals

- Net profit margin has averaged 1.0% in the last 3 years. This suggests the company is less profitable with a low margin of safety.

SECTION 6 Ongoing Bearish Parameters

6.1 Past two-years

- The shares fell GBX26.31 (9.5%) a year ago which accelerated to GBX82.20 (32.6%) in the past year.

6.2 Rank in the bottom 14% by Gearing in the United Kingdom market

DescriptionValueRank
Total Debt to Equity1.0In Bottom 14%

6.3 Annualised Period-based Total Shareholder Returns [TSR %]: The Worst Periods with TSR < -5.5%

TSR %1 yr3 yrs
GLEN.L-25.9-5.6

6.4 Present Value of GBP1000 Invested in the Past [1 Yr, 3 Yrs]; The Worst Periods with PVGBP1000 < 840

PVGBP1,0001 yr ago3 yrs ago
GLEN.LGBP741GBP839
Mining sectorGBP834GBP557
FTSE 100 IndexGBP809GBP835

6.5 The Worst Periods [1 Yr, 3 Yrs] with Price Change % < -29.9

3-Year price change of -30% for Glencore underperformed the change of -15.8% in the FTSE 100 index for a relative price change of -14.2%.

Price Change %Year3 Years
Glencore-32.6-30
Mining sector-17-42.5
FTSE 100 index-18.6-15.8

6.6 Moving Annual Return of -26.1% in the past year:

Moving Annual Return was -26.1% in the past year. Based on a dynamic start date of 5 years ago, the real rate of return has averaged 8.7%. The Moving Annual Return has been negative in 3 out of 5 years.

GLENClose (GBX)Dividends (GBX)Capital Gain / (Loss) %% YieldAnnual Return %
Jul 03169.6816.37(32.6)6.5(26.1)
1 Yr ago251.8815.5(16.8)5.1(11.7)
2 Yrs ago302.719.8524.94.129.0
3 Yrs ago242.382.785.92.188.0
4 Yrs ago130.383.9(37.3)1.9(35.5)

Close 5 years ago GBX208.03

6.7 MCap: 5-Year Decrease of GBP11 billion [USD137 million]

In the past 5 years Market Capitalization has decreased by GBP11 billion (33%) from GBP33.6 billion to GBP22.6 billion. Based on a dynamic start date of 5 years ago, there have been declines in MCap in 3 out of 5 years.

PriceMCap (GBP B)MCap (US$ B)
LastGBX169.6822.628.2
1 Year agoGBX251.8837.947.7
2 Years agoGBX302.7150.466.2
3 Years agoGBX242.3841.353.7
4 Years agoGBX130.3822.429.7
5 Years agoGBX208.0333.652.4

6.8 Total Shares on Issue: 5-Year Increase of 4.5%

In the past 5 years total shares on issue have increased by 585.3 million (4.5%) from 13.1 billion to 13.7 billion. Buybacks have averaged 95.3 million shares [0.7%] per financial year. Based on a dynamic start date of 5 years ago, there have been declines in issued capital in 2 out of 5 years. An increase in total shares on issue is an unfavourable indicator in Joseph Piotroski's 9 indicators.

Year End (Dec 31)Total Shares on Issue
201913,684,091,000
201814,151,826,000
201714,256,020,000
201614,224,100,000
201513,317,970,000
201413,098,766,000

6.9 Deteriorated EBIT Margins:

EBIT margin is negative and has deteriorated from 2.1% to -0.4% in the past year.

FYEBIT Margins (%)
2019-0.4
20182.1
20173.4
20160.7
2015-4.7

6.10 High Debt to Equity (%) and Increasing

The debt to equity ratio of 103.9% is above a safe benchmark figure of 70%. Moreover, it has deteriorated in the past three years.

YearsDebt to Equity (%)
Dec 2019103.9
Dec 201884.25
Dec 201777.76
Dec 201675.08
Dec 2015106.78

6.11 Declining Volume, down 48% in 5 years

In the past five years, Average Daily Volume of Trading (ADVT) has decreased 47.6% to 41.3 million shares.

Avg. Daily Volume Traded 12 months ended Jul 03, million shares

YearADVT
202041.3
201944.9
201846.8
201750.2
201678.7

6.12 Declining share turnover, down 9% in 5 years

In the past five years, average daily share turnover has decreased 8.6% to GBP74.8 million (US$93.4 million). This suggests decreased liquidity.

Past five years, 12 months ended Jul 03 (GBP million)

YearAverage Daily Turnover
202074.8
2019119.2
2018145.0
2017108.7
201681.9

6.13 Thinly traded stock: Days Untraded

Past four years, 12 months ended Jul 03

YearDays Untraded
20207
20195
20176

Liquidity has deteriorated from 6 Days Untraded four years ago to 7 days in the past year.

6.14 Revenue, EPS, and EBITDA:

- Revenue growth rate has shown signs of deterioration in recent years. [compared with previous year, all figures in %]

FYRevenue GrowthEPS GrowthEBITDA Growth
2019-2--
20187-41-32
201734310508

6.15 Satisfies 3 out of 9 criteria of Joseph Piotroski [pass mark 5]:

- Positive operating cashflow.

- Good quality of earnings [operating cashflow exceeds net income].

- Reduction in total shares on issue.

SECTION 7 Insider Buying

7.1 Insider buying Summary in the past 12 months

NameNo. of SharesPrice, GBPValue, GBP
Peter Coates AO [Non-Executive Director]80,0001.3101,968.0
Total80,0001.3101,968.0

7.2 Peter Coates AO [Non-Executive Director] Reported Buying In The Past 12 Months

MonthNo. of SharesPrice, GBPValue, GBP
April 07, 2020800001.3101,968.0

SECTION 8 Glencore Board of Directors

8.1 Board and Management

NameDesignationSince Appointment
Ivan GlasenbergChief Executive Officer9 Yrs, 3 Mos
Anthony HaywardNon-Executive Chairman7 Yrs, 2 Mos
Steven KalminChief Financial Officer-
Martin GilbertIndependent Director-
Gill MarcusIndependent Non-Executive Director2 Yrs, 6 Mos
Leonhard FischerIndependent Non-Executive Director-
Patrice MerrinIndependent Non-Executive Director-
John MackIndependent Non-Executive Director-
Kalidas MadhavpeddiIndependent Non-Executive Director5 Mos
Peter Coates AONon-Executive Director6 Yrs, 6 Mos
John BurtonCompany Secretary8 Yrs, 10 Mos

8.2 Resignations in the past 3 years

NameDesignationDate of Resignation
Peter GrauerNon-Executive Director06 March 2018
William MacaulayIndependent Non-Executive Director14 April 2017

8.3 Profiles

Ivan Glasenberg

CEO

Appointed: Ivan Glasenberg joined Glencore in April 1984 and has been Chief Executive Officer since January 2002. Committees: HSEC Experience: Mr Glasenberg initially spent three years working in the coal commodity department in South Africa as a marketer, before spending two years in Australia as head of the Asian coal commodity division. Between 1988 and 1989, he was based in Hong Kong as head of Glencore's Hong Kong and Beijing offices, as well as head of coal marketing in Asia, where his responsibilities included overseeing the Asian coal marketing business of Glencore and managing the administrative functions of the Hong Kong and Beijing offices.

In January 1990, he was made responsible for the worldwide coal business of Glencore for both marketing and industrial assets, and remained in this role until he became Chief Executive Officer in January 2002.

Mr Glasenberg is a Chartered Accountant of South Africa and holds a Bachelor of Accountancy from the University of Witwatersrand. Mr Glasenberg also holds an MBA from the University of Southern California. He is currently a non-executive director of United Company Rusal plc (HKG: 0486). Before joining Glencore, Mr Glasenberg worked for five years at Levitt Kirson Chartered Accountants in South Africa.

Shareholder Value:

Creation of shareholder value in Glencore:

Date of appointment: March 14, 2011

In the last 5 years the average annualized return to shareholders was 0.5%. The present value of GBP1,000 (PV1000) invested 5 years ago is now GBP1,023, a loss of GBP184 and dividend reinvested of GBP207.

Anthony Hayward

Non-Executive Chairman

Appointed: Anthony Hayward was appointed Independent Non-Executive Chairman in May 2013. Prior to being appointed Chairman he was the Senior Independent Non-Executive Director of the Company.

Committees: Health, Safety, Environment and Communities("HSEC") Experience: Dr Hayward is non-executive chairman of Genel Energy plc (LON:GENL), a partner and member of the European advisory Board of AEA Capital and chairman of Compact GTL Limited.

Dr Hayward was chief executive of BP plc from 2007 to 2010, having joined BP in 1982 as a rig geologist in the North Sea. He became group treasurer in 2000, chief executive for BP upstream activities and member of the main Board of BP in 2003.

Dr Hayward studied geology at Aston University in Birmingham and completed a Ph.D at Edinburgh University. He is also a fellow of the Royal Society of Edinburgh and holds honorary doctorates from the University of Edinburgh, Aston University, the University of Birmingham and Aberdeen University.

Shareholder Value:

Creation of shareholder value in Glencore:

Month of appointment: May 2013

In the last 5 years the average annualized return to shareholders was 0.5%. The present value of GBP1,000 (PV1000) invested 5 years ago is now GBP1,023, a loss of GBP184 and dividend reinvested of GBP207.

Steven Kalmin

CFO

Steven Kalmin Chief Financial Officer (Age 46)

Appointed: Steven Kalmin has been Chief Financial Officer since June 2005.

Experience: Steven Kalmin joined Glencore in September 1999 as general manager of finance and treasury functions at Glencore's coal industrial unit (which became part of Xstrata). Mr Kalmin moved to Glencore's Baar head office in October 2003 to oversee Glencore's accounting and reporting functions, becoming Chief Financial Officer in June 2005. Mr Kalmin holds a Bachelor of Business (with distinction) from the University of Technology, Sydney and is a member of the Chartered Accountants Australia and New Zealand and the Financial Services Institute of Australasia.

Before joining Glencore, Mr Kalmin worked for nine years at Horwath Chartered Accountants in Sydney, leaving the firm as a director.

Martin Gilbert

Independent Director

Appointed

Martin Gilbert was appointed as an Independent Non-Executive Director of the Company on 5 May 2017.

Experience

Martin Gilbert is Co-Chief Executive of Standard Life Aberdeen plc.

Mr Gilbert was a co-founder and the Chief Executive of Aberdeen Asset Management, which was established in 1983. Under his leadership, Aberdeen became one of the world's leading independent asset managers through a combination of organic growth and strategic acquisitions.

Mr Gilbert was appointed Chairman of the Prudential Regulation Authority's Practitioner Panel in December 2013. He sits on the Board of Directors of the Institute of International Finance. He is also a member of the International Advisory Panel of the Monetary Authority of Singapore and the International Advisory Board of British American Business. He is also the Deputy Chairman of SKY PLC.

He is Adjunct Professor of Finance at Imperial College Business School and in 2014, he was awarded a Doctorate of Letters from Heriot-Watt University.

Mr Gilbert, who was born in Malaysia, was educated in Aberdeen and has an MA in Accountancy and an LLB. After university, he joined Deloitte where he qualified as a Chartered Accountant. In 1982, he joined the investment department of local law firm Brander & Cruikshank, which went on to become Aberdeen Asset Management.

Gill Marcus

Independent Non-Executive Director

Gill Marcus was appointed as an Independent Non-Executive Director of the Company on 7 December 2017 with effect from 1 January 2018.

Experience Ms Marcus worked in exile for the African National Congress from 1970 until 1994 in a variety of roles including that of Deputy Secretary of Information and Publicity. Returning to South Africa in 1990, Gill was a key member of the team that prepared for the first democratic elections. In 1994 she was elected to the South African Parliament, where she chaired the Joint Standing Committee on Finance. In 1996 she was appointed as Deputy Minister of Finance and in 1999 as Deputy Governor of the Reserve Bank, where she served for 5 years.

Ms Marcus was the non-executive chairperson of the Absa Group from 2007 to 2009. She has also been a non-executive director of Gold Fields Ltd and Bidvest.

Ms Marcus has acted as chairperson of a number of South African regulatory and supervisory bodies, including the Financial Services Board and the Standing Committee for the Revision of the Banks Act. She has also served as a non-executive director of the Advisory Board of the Auditor General and was a member of the Millennium Labour Council.

Ms Marcus is a graduate of the University of South Africa.

Leonhard Fischer

Independent Non-Executive Director

Independent Non-Executive Director (Age 54)

Appointed: Leonhard Fischer was appointed an Independent Non-Executive Director in April 2011. Committees: Audit (Chairman), Nomination and Remuneration Experience: Mr Fischer was chief executive officer of BHF Kleinwort Benson Group S.A. (formerly RHJ International S.A.) from January 2009 until April 2016, having been co-chief executive officer since May 2007.

Mr Fischer was chief executive officer of Winterthur Group from 2003 to 2006 and a member of the executive Board of Credit Suisse Group from 2003 to March 2007. He joined Credit Suisse Group from Allianz AG, where he had been a member of the management Board and head of the corporates and markets division. Prior to this, he had been a member of the executive Board of Dresdner Bank AG in Frankfurt.

Mr Fischer holds an M.A. in Finance from the University of Georgia.

Patrice Merrin

Independent Non-Executive Director

Independent Non-Executive Director (Age 68)

Appointed: Patrice Merrin was appointed as an Independent Non-Executive Director in June 2014.

Committees: HSEC Experience: Ms Merrin is currently a non-executive director of Stillwater Mining (NYSE:SWC) and Novadaq Technologies Inc (Nasdaq:NVDQ). She has been a director and then chairman of CML Healthcare from 2008 to 2013, of Enssolutions, a mine tailing solutions company, and of NB Power.

Following initial roles with Molson and Canadian Pacific, Ms Merrin worked at Sherritt, the Canadian diversified miner, for 10 years until 2004, latterly as COO. She then became CEO of Luscar, Canada's largest thermal coal producer.

Ms Merrin was a director of the Alberta Climate Change and Emissions Management Corporation from 2009 to 2014. She was also a member of the Canadian Advisory Panel on Sustainable Energy Science and Technology from 2005 to 2006, and from 2003 to 2006 was a member of Canada's Round Table on the Environment and the Economy.

Ms Merrin is a graduate of Queen's University, Ontario and completed the Advanced Management Programme at INSEAD.

Kalidas Madhavpeddi

Independent Non-Executive Director

Kalidas Madhavpeddi has over 30 years of experience in the international mining industry, including being CEO of China Molybdenum International (China Moly) from 2008 to 2018. He started his career at Phelps Dodge, where he worked from 1980 to 2006, ultimately becoming Senior Vice President responsible for the company's global business development, acquisitions and divestments, as well as its global exploration programs. He was contemporaneously President of Phelps Dodge Wire & Cable, a global downstream fabricator of aluminium and copper for the motor, electrical and automotive industries.

Mr Madhavpeddi has degrees from the Indian Institute of Technology, Madras, India and the University of Iowa and has completed the Advanced Management Program at Harvard Business School.

John Mack

Independent Non-Executive Director

Independent Non-Executive Director (Age 72)

Appointed: John Mack was appointed as an Independent Non-Executive Director in June 2013. Committees: Remuneration (Chairman) and Nomination Experience: Mr Mack is a non-executive director of Enduring Hydro, Corinthian Opthalmic and Lending Club Corporation (NYSE:LC). Mr Mack also serves on the Advisory Board of China Investment Corporation, is a member of the International Business Council of the World Economic Forum, the NYC Financial Services Advisory Committee and the Shanghai International Financial Advisory Council. Mr Mack previously served as chief executive officer of Morgan Stanley from June 2005 until December 2009. He retired as chairman in 2011. Mr Mack first joined Morgan Stanley in May 1972, becoming a Board Director in 1987 and was named President in 1993.

Before rejoining Morgan Stanley as chairman and chief executive officer in June 2005, Mr Mack served as co-chief executive officer of Credit Suisse Group and chief executive officer of Credit Suisse First Boston.

Mr Mack is a graduate of Duke University.

Peter Coates AO

Non-Executive Director

Appointed: Peter Coates has been a Non-Executive Director since January 2014. Prior to this he served as an Executive Director from June to December 2013 and a Non-Executive Director from April 2011 to May 2013.

Committees: HSEC (Chairman)

Experience: Prior to joining Glencore in 1994 as a senior executive in the coal department, Mr Coates had occupied senior positions in a range of resource companies, including those mining silver, lead, nickel, iron ore, bauxite and coal. He joined Xstrata in 2002 as chief executive of Xstrata's coal business, when Glencore sold its Australian and South African coal assets to Xstrata, stepping down in December 2007.

He was non-executive chairman of Xstrata Australia from January 2008 until August 2009. From April 2008 until April 2011, he was a non-executive chairman of Minara Resources Ltd. From May 2013 to June 2016, he was a non-executive chairman of Sphere Minerals Limited. Mr. Coates is non-executive chairman of Santos Limited (ASX:STO) and a non-executive director of Event Hospitality and Entertainment Limited (ASX:EVT). Mr Coates is a past chairman of the Minerals Council of Australia, the NSW Minerals Council and the Australian Coal Association.

Mr Coates holds a Bachelor of Science degree in Mining Engineering from the University of New South Wales. He was appointed to the Office of the Order of Australia in June 2009 and awarded the Australasian Institute of Mining and Metallurgy Medal for 2010.

Shareholder Value:

Creation of shareholder value in Glencore:

Month of appointment: January 2014

In the last 5 years the average annualized return to shareholders was 0.5%. The present value of GBP1,000 (PV1000) invested 5 years ago is now GBP1,023, a loss of GBP184 and dividend reinvested of GBP207.

John Burton

Company Secretary

Accountants in Sydney, leaving the firm as a director. John Burton Company Secretary (Age 52)

Appointed: John Burton was appointed Company Secretary in September 2011.

Experience: He was formerly company secretary and general counsel of Informa plc and before that a partner of CMS in London specialising in corporate law. Mr Burton holds a B.A. degree in Law from Durham University. He was admitted as a Solicitor in England and Wales in 1990.

Shareholder Value:

Creation of shareholder value in Glencore:

Month of appointment: September 2011

In the last 5 years the average annualized return to shareholders was 0.5%. The present value of GBP1,000 (PV1000) invested 5 years ago is now GBP1,023, a loss of GBP184 and dividend reinvested of GBP207.

SECTION 9 Dividend

9.1 Dividend History

In the past 5 years annual dividends have increased by GBX12.5 from GBX3.9 to GBX16.4. Based on a start date of 5 years ago, there has been only one decline in dividends over the last 5 years.

Date PaidValue (GBX)Type
23 Apr 20208.11Final
05 Sep 20198.25Interim
Tr 12 Months16.36
25 Apr 20197.73Final
06 Sep 20187.77Interim
2018 - 201915.5
26 Apr 20187.16Final
07 Sep 20172.69Interim
2017 - 20189.85
11 May 20172.7Final
2016 - 20172.7
10 Sep 20153.9Interim
2015 - 20163.9

SECTION 10 Financials FY 2019, Past 10 Years

10.1 Annual Report (FY 2019): Key Parameters

Glencore Revenue down 2.5%

Release Date: February 18, 2020

Glencore (L:GLEN) reported total revenue for the year-ended 31 December 2019 [FY2019] of $US215b, down 2.5% from $US221b in the previous year [FY2018].

Major changes compared with previous year (FY2019 vs FY2018):

Unfavourable Changes:

- Sales revenue down 2.5% from $US220.5b to $US215.1b

- Debt to Equity up 23.8% from 0.8 to 1.0

- Working capital to total assets down from 3.0% to 1.9%

- Retained earnings to total assets down from 35.4% to 32.3%

- Total current assets to Total Assets down from 34.4% to 33.7%

- Total Liabilities to Operating Cash Flow of 9.7 compares unfavourably with the Joseph Piotroski benchmark of <4. This ratio has deteriorated by 34.8% from the previous year's ratio of 7.2.

- Net tangible assets per share down 13% from $US2.69 to $US2.34

Note:

- Total revenue to total assets steady at 1.7

- Cost of Goods Sold to Sales up from 95.9% to 97.8%

- Total liabilities to Total assets steady at 0.7

- Current ratio steady at 1.1

- Total non-current assets to Total Assets up from 65.6% to 66.3%

- Fixed Assets to Total Assets up from 44.1% to 44.6%

- Current Inventory to Total Assets up from 16% to 16.1%

- Current Debtors to Total Assets down from 13.8% to 13.7%

Year-on-year comparison of Performance Ratios [FY2019 vs FY2018]

December 31FY2019FY2018Change (%)
Total debt to net tangible assets (%)126.599.5Up 27.1
Total Liabilities to Operating Cash Flow9.77.2Up 34.8
Total Liabilities/Total Assets (Up 4.6% from 0.65 to 0.68)0.70.7Up 4.6
Current Ratio (Down 3.6% from 1.1 to 1.06)1.11.1Down 3.6
Common Size Ratios by Assets %
Total non-current assets to Total Assets 66.3 65.6 Up 1.1
Fixed Assets to Total Assets 44.6 44.1 Up 1.1
Total current assets to Total Assets 33.7 34.4 Down 2.0
Current Inventory to Total Assets 16.1 16.0 Up 0.7
Current Debtors to Total Assets 13.7 13.8 Down 0.9
Common Size Ratios by Sales %
Cost of Goods Sold to Sales 97.8 95.9 Up 2.0
Sales and marketing expenses to Sales 0.6 0.6 Down 4.2
Tax expenses to Sales (0.3) (0.9) Up 67.9
Profit before tax to Sales (0.4) 2.1 Down 118.9

10.2 Financial Results as reported (FY 2019)

RESULTS OF OPERATIONS AND FINANCIAL CONDITION

(In $US Million, except per share data and shares outstanding)

INCOME STATEMENT AS REPORTED (FY 2019)

Description$US Million$US Million
Dec 3120192018Change %
Revenue215,111220,524Down 2.5
Cost of goods sold-210,434-211,468Improved 0.5
Selling and administrative expenses-1,391-1,381Deterioration 0.7
Share of income from associates and joint ventures1141,043Down 89.1
Net loss on disposals of non-current assets-43-139Improved 69.1
Other expense - net-173-764Improved 77.4
Impairments of non-current assets-2,322-1,452Deterioration 59.9
Impairments of non-current financial assets-86-191Improved 55.0
Dividend income4921Up 133.3
Interest income227228Down 0.4
Interest expense-1,940-1,742Deterioration 11.4
(Loss)/income before income taxes-8884,679Deterioration
Income tax expense-618-2,063Improved 70.0
(Loss)/income for the year-1,5062,616Deterioration
Attributable to:
Non-controlling interests-1,102-792Deterioration 39.1
Equity holders of the Parent-4043,408Deterioration
(Loss)/earnings per share:
Basic (US)-3.0c24.0cDeterioration
Diluted (US)-3.0c24.0cDeterioration
Weighted average number of shares BASIC13,684,091,00014,151,826,000Down 3.3
Weighted average number of shares DILUTED13,776,565,00014,253,527,000Down 3.3

BALANCE SHEET AS REPORTED (FY 2019)

Description$US Million$US Million
Dec 3120192018Change %
Assets
Non-current assets
Property plant and equipment55,35756,770Down 2.5
Intangible assets7,0066,971Up 0.5
Investments in associates and joint ventures12,98413,909Down 6.7
Other investments2,3872,067Up 15.5
Advances and loans2,4272,555Down 5.0
Other financial assets2551Down 51.0
Inventories575353Up 62.9
Deferred tax assets1,4771,728Down 14.5
82,23884,404Down 2.6
Current assets
Inventories19,93620,564Down 3.1
Accounts receivable17,02117,787Down 4.3
Other financial assets2,3813,482Down 31.6
Prepaid expenses315389Down 19.0
Cash and cash equivalents1,8992,046Down 7.2
41,55244,268Down 6.1
Assets held for sale286
41,83844,268Down 5.5
Total assets124,076128,672Down 3.6
Equity and liabilities
Capital and reserves - attributable to equity holders
Share capital146146Steady
Reserves and retained earnings40,12845,592Down 12.0
40,27445,738Down 11.9
Non-controlling interests-1,038-355Deterioration 192.4
Total equity39,23645,383Down 13.5
Non-current liabilities
Borrowings29,06726,424Up 10.0
Deferred income2,6702,301Up 16.0
Deferred tax liabilities5,9746,839Down 12.6
Other financial liabilities379529Down 28.4
Provisions including post-retirement benefits7,3026,824Up 7.0
45,39242,917Up 5.8
Current liabilities
Borrowings7,9768,570Down 6.9
Accounts payable26,19326,484Down 1.1
Deferred income558412Up 35.4
Provisions489554Down 11.7
Other financial liabilities3,7223,243Up 14.8
Income tax payable3541,109Down 68.1
39,29240,372Down 2.7
Liabilities held for sale156
39,44840,372Down 2.3
Total equity and liabilities124,076128,672Down 3.6

CASH FLOW AS REPORTED (FY 2019)

Description$US Million$US Million
Dec 3120192018Change %
Operating activities
(Loss)/income before income taxes-8884,679Deterioration
Adjustments for:
Depreciation and amortisation7,1606,325Up 13.2
Share of income from associates and joint ventures-114-1,043Improved 89.1
Streaming revenue and other non-current provisions-296-647Improved 54.3
Loss on disposals of non-current assets43139Down 69.1
Unrealised mark-to-market movements on other investments-47-139Improved 66.2
Impairments2,4081,643Up 46.6
Other non-cash items - net1367739Down 50.3
Interest expense - net1,7131,514Up 13.1
Cash generated by operating activities before working capital changes10,34613,210Down 21.7
Working capital changes
Decrease in accounts receivable21,2112,734Down 55.7
Decrease in inventories6783,539Down 80.8
Increase/(decrease) in accounts payable3199-4,948Recovery
Total working capital changes2,0881,325Up 57.6
Income taxes paid-2,301-1,740Deterioration 32.2
Interest received200183Up 9.3
Interest paid-1,604-1,419Deterioration 13.0
Net cash generated by operating activities8,72911,559Down 24.5
Investing activities
Net cash used in acquisition of subsidiaries-123-2,922Improved 95.8
Net cash received from disposal of subsidiaries588Down 94.3
Exchangeable loan provided for the conditional acquisition of Astron Energy-1,044
Purchase of i nvestm ents-125-19Deterioration 557.9
Proceeds from sale of investments11916Up 643.8
Purchase of property plant and equipment-4,712-4,687Deterioration 0.5
Proceeds from sale of property plant and equipment178136Up 30.9
Dividends received from associates and joint ventures9421,139Down 17.3
Net cash used by investing activities-3,716-7,293Improved 49.0
Financing activities1
Proceeds from issuance of capital market notes23,866185Up 1,989.7
Proceeds from issuance of non-dilutive convertible bonds2576
Purchase of call options on non-dilutive convertible bonds-95
Repayment of capital market notes-3,167-3,650Improved 13.2
(Repayment)/proceeds from revolving credit facility-294,624Deterioration
Proceeds from other non-current borrowings29115Up 1,840.0
Repayment of other non-current borrowings-325
Repayment of finance lease obligations under IAS 17-72
Repayment of lease liabilities under IFRS 16-358
Margin receipts/(calls) in respect of financing related hedging activities529-507Recovery
(Repayment of)/proceeds from current borrowings-682439Deterioration
Proceeds from/(repayment of) U.S. commercial papers79-634Recovery
Acquisition of non-controlling interests in subsidiaries-24-58Improved 58.6
Return of capital/distributions to non-controlling interests-305-343Improved 11.1
Purchase of own shares-2,318-2,005Deterioration 15.6
Disposal of own shares627Down 77.8
Distributions paid to equity holders of the Parent-2,710-2,836Improved 4.4
Net cash used by financing activities-5,147-4,334Deterioration 18.8
Decrease in cash and cash equivalents-134-68Deterioration 97.1
Effect of foreign exchange rate changes-11-33Improved 66.7
Cash and cash equivalents beginning of period2,0462,147Down 4.7
Cash and cash equivalents end of year1,9012,046Down 7.1

10.3 Download GLENCORE Financials Past 10 Years

Description (December 31)2019201820172016201520142013201220112010
Income Statement
Revenue per share 15.6115.4714.2510.711.0616.9321.0930.830.9621.03
Other Revenue 527 M99 M1.4 B845 M384 M2 B8 M
EBITDA (B)11.4(1.9)3.96.36.6
Depreciation (B)5.441.51.11
EBIT (B)1.1(6.9)6(5.9)2.45.25.6
Interest (B)1.71.51.71.81.41.21.2
Profit before tax (549 M)(8.4 B)4.3 B(7.7 B)1.1 B4 B4.3 B
Tax (618 M)(2.1 B)(1.8 B)638 M(9 M)1.8 B254 M76 M264 M234 M
Net profit (404 M)3.4 B5.8 B1.4 B(5 B)2.3 B(7.9 B)1 B4 B1.3 B
EPS (0.03)0.240.410.1(0.37)0.18(0.72)0.140.680.35
Balance Sheet
Equity Share Capital (B)40.345.749.544.241.348.549.331.129.322.5
Retained Earnings 40.1 B45.6 B49.6 B44.1 B(5.1 B)(222 M)49.2 B31.1 B(274 M)(263 M)
Total Debt (B)40.838.238.533.24456.657.538.932.938.7
Total Assets (B)124.1128.7135.6124.6128.5152.2154.9105.686.279.8
Current Asset (B)41.844.349.743.442.253.253.754.145.744.3
Fixed Asset (B)55.456.85753.860.870.167.223.614.612.1
Working Capital 2.4 B3.9 B5.3 B45 M1.3 B9.3 B7.8 B7 B14.3 B7.5 B
Cash Flow
Operating Cash Flow 8.7 B11.6 B4.8 B4.8 B13.2 B8.1 B9.2 B4.4 B(343 M)111 M
Investing Cash Flow (B)(3.7)(7.3)(2.5)3.6(5.3)(4)(6.7)(9.5)(3.7)(4.8)
Financing Cash Flow (B)(5.1)(4.3)(8.6)(8.1)(4.1)(2.4)6.63.95.2
Net Cash Flow (134 M)(68 M)(184 M)(117 M)(25 M)67 M1.5 B(158 M)603 M

SECTION 11 Peer Group Analysis & Ranking

11.1 Global Peer Group (all figures in USD): Key Financials

In its Global Peer Group of 9 companies GLEN is ranked first by Revenue, Total Assets, fifth by MCap and ninth by Relative Str. (6 mo), PV $1000 (1 yr), Net Profit.

Name (Code)Relative Str. (6 mo)MCapPV $1000 (1 yr)RevenueNet ProfitTotal Assets
Rank of GLEN959191
Glencore (GLEN)3428.2B734.8215.1B(404M)124.1B
GMK Norilsk Nickel (GMKN)5942.8B1,476.011.7B3.1B15.3B
Anglo American (AAL)4931.1B917.627.6B3.5B52.2B
Fortescue Metals (FMG)9130B1,841.810B3.2B19.7B
China Steel Preference (2002A)7829.4B1,282.911.3B680.9M21B
Franco-Nevada (FNV)9125.6B1,669.3844.1M386.3M5.3B
Assa Abloy Class B (ASSA B)5621.9B928.99B296.1M11.5B
Wheaton Precious Metals (WPM)9319.3B1,850.4861.3M86.1M6.3B
Grupo Mexico (GMEXICO)5118.7B957.610.4B2.5B15.9B

Global Peer Group: Relative Value Indicators

GLEN is ranked first by P/S and Turnover Rate.

Name (Code)Country CodeLast PriceP/EP/SP/BookTurnover Rate (%)% Disc to 52-w Hi
Rank of GLEN11
Glencore (GLEN)GBGBX169.680.186.932.0
GMK Norilsk Nickel (GMKN)RURUB19,002.013.83.612.835.117.6
Anglo American (AAL)GBGBX1,835.08.41.21.283.914.4
Fortescue Metals (FMG)AUAUD14.029.43.02.886.38.1
China Steel Preference (2002A)TWTWD54.900.11.1
Franco-Nevada (FNV)CACAD185.4828.15.065.413.3
Assa Abloy Class B (ASSA B)SESEK193.7078.52.459.120.8
Wheaton Precious Metals (WPM)CACAD58.5621.63.649.59.9
Grupo Mexico (GMEXICO)MXMXN54.4322.97.5

11.2 BuySellSignals Fundamentals Valuation Ranking: Glencore vs United Kingdom Market

Out of 931 stocks and 5 units in the United Kingdom Market, Glencore is ranked fifth by Revenue, twentieth by Market Cap GBP, Fifty-third by Yield and 148th by Price/Net Tangible Assets.

United Kingdom AvgGLENRankRank 1Rank 2Rank 3Lowest Rank
Revenue GBP2.4 B172.2 B5357.7 B PPH281.9 B RDSB281.9 B RDSA233 AYM
Market Cap GBP4.3 B22.6 B20111 B AZN101.6 B RDSA96.5 B RDSB465,444 MLVN
Yield (%)2.99.75315.4 INVP14.6 CAU14.5 CCH0.01 GFTU
Price/Net Tangible Assets0.9x0.9x1480.1x CLIG0.1x HYR0.1x LEK-
Discount to 52-Wk High (%)27.633.968698.1 KIBO94.3 MLVN93.6 TOM-
EBITDA Margin13.5(0.4)95988.2 AGR85.6 GENL85.2 WIN(87.9) RDI
Premium to 52-Wk Low (%)49.564.2962 0.3 STB1600 GDR
Total Debt/Equity (the lower the better)0.7x1.04x1117HOTCCAPD0.001x TLY11.5x WIN
Net Profit134.2 million(404 M)219533.9 B PPH15.8 B RDSA15.8 B RDSB

Negative values are shown in brackets.

11.3 Market Share

Glencore has a position of market dominance in the Mining sector.

Glencore vs Mining sector [Mining sector Total in Brackets]

Revenue of USD172.2 billion[80.9% of aggregate sector revenue of GBP277.4 billion; down from 82.3% in the previous year.]

11.4 Share in Index

Glencore is a constituent of the following indices. Its market capitalisation accounts for 1.4% of the combined MCap of the FTSE 100 Index.

Index NameMCap of Index (USD B)MCap as % of Index
FTSE 100 Index2,077 1.4
FTSE 350 Index2,465 1.1
FTSE All-Share Index2,541 1.1

11.5 Global Rank [out of 47,724 stocks] and Rank of Glencore in the Europe Region [out of 7,723 stocks]

DescriptionValueGlobal RankIn Eur Region
MCap (US$)28.2B487103
Total Assets (US$)124.1B479112
Revenue (US$)215.1B3211
Net Profit (US$)(404M)43,0786,485
Return on Equity %(3.8)30,5874,683
Net Profit Margin %(0.7)28,1624,321
Price to Book0.913,9601,748
Yield %9.41,925322
PV1000 (1Year) USD*73528,3915,092
US$* Change (1Year) %-32.130,8575,481

* 1 year ago GBP 1 = USD 1.26

Jul 03, 2020: GBP 1 equals USD 1.25

11.6 Rank of Glencore in the FTSE 100 Index [out of 90 stocks], in the Total United Kingdom Market [out of 1489 stocks] and in the Mining sector [out of 83 stocks]

DescriptionValueIn FTSE 100 IndexIn Total United Kingdom MarketIn Mining sector
MCap (GBP)22.6B19204
Total Assets (GBP)99.3B16321
Revenue (GBP)172.2B351
Net Profit (GBP)(323.4M)841,66594
Return on Equity %(3.8)821,06128
Net Profit Margin %(0.7)7994725
Price to Book0.91548921
Yield %9.79841
PV1000 (1Year) GBX7416397258

11.7 Long-Term Fundamental Ranking: 3 out of 5 [5 is best]

Glencore is ranked number 4 out of 138 listed mining companies in the United Kingdom with a market capitalization of GBP22.6 billion (US$28.2 billion).

Within its sector it has a relatively low Price/Sales of 0.1.

The company paid a dividend of GBX8.11 in the last twelve months. The dividend yield is high at 9.7%.

Stocks are scored on a set of parameters reflecting fundamental analytical tools involving valuation, size and financial performance. They are ranked according to the average values of those parameters. The highest ranking is 5 and the lowest ranking is 1.

SECTION 12 News Archives (Jun 2019 - Mar 2020)

12.1 Changes in Board (TTM)

February 04: Glencore appoints Independent Non-Executive Director

Glencore has appointed Kalidas Madhavpeddi as Independent Non-Executive Director. The effective date is Tuesday, February 04.

12.2 Share Buybacks

August 23 2019: Glencore buys back 3,500,000 shares

Glencore (GLEN.L) announced a buyback of 3,500,000 shares worth GBP802,018,700 (or $US980,734,933) on August 23, 2019. The buyback price was GBP229.15.

August 12 2019: Glencore buys back 2,839,128 shares

Glencore (GLEN.L) announced a buyback of 2,839,128 shares worth GBP657,735,673 (or $US792,426,785) on August 12, 2019. The buyback price was GBP231.67.

August 09 2019: Glencore buys back 2,814,103 shares

Glencore (GLEN.L) announced a buyback of 2,814,103 shares worth GBP656,151,452 (or $US796,514,714) on August 09, 2019. The buyback price was GBP233.17.

August 06 2019: Glencore buys back 2,914,302 shares

Glencore (GLEN.L) announced a buyback of 2,914,302 shares worth GBP684,347,470 (or $US831,658,053) on August 05, 2019. The buyback price was GBP234.82.

August 02 2019: Glencore buys back 2,746,749 shares

Glencore (GLEN.L) announced a buyback of 2,746,749 shares worth GBP666,161,619 (or $US806,551,849) on August 02, 2019. The buyback price was GBP242.53.

July 31 2019: Glencore buys back 2,450,000 shares

Glencore (GLEN.L) announced a buyback of 2,450,000 shares worth GBP6,579,803 (or $US8,001,699) on July 31, 2019. The buyback price was GBX268.56.

July 25 2019: Glencore buys back 2,331,695 shares

Glencore (GLEN.L) announced a buyback of 2,331,695 shares worth GBP6,492,010 (or $US8,098,783) on July 25, 2019. The buyback price was GBX278.42.

July 24 2019: Glencore buys back 2,293,799 shares

Glencore (GLEN.L) announced a buyback of 2,293,799 shares worth GBP633,294,737 (or $US787,493,772) on July 24, 2019. The buyback price was GBP276.09.

July 23 2019: Glencore buys back 2,345,950 shares

Glencore (GLEN.L) announced a buyback of 2,345,950 shares worth GBP6,492,203 (or $US8,087,337) on July 23, 2019. The buyback price was GBX276.74.

July 22 2019: Glencore: Transaction in Own Shares

Glencore plc (the Company) announces today it has purchased the following number of its ordinary shares of USD 0.01 each on the London Stock Exchange from Citigroup Global Markets Limited.

Date of purchase:

22 July 2019

Aggregate number of ordinary shares of USD 0.01 each purchased:

2,349,210

Lowest price paid per share (GBp):

272.0000

Highest price paid per share (GBp):

277.1500

Volume weighted average price paid per share (GBp):

274.8031

Source: London Stock Exchange

July 19 2019: Glencore: Transaction in Own Shares

Glencore plc (the Company) announces today it has purchased the following number of its ordinary shares of USD 0.01 each on the London Stock Exchange from Citigroup Global Markets Limited.

Date of purchase:

18 July 2019

Aggregate number of ordinary shares of USD 0.01 each purchased:

2,298,023

Lowest price paid per share (GBp):

268.0500

Highest price paid per share (GBp):

270.6500

Volume weighted average price paid per share (GBp):

269.6433

Source: London Stock Exchange

July 19 2019: Glencore: Transaction in Own Shares

Glencore plc (the Company) announces today it has purchased the following number of its ordinary shares of USD 0.01 each on the London Stock Exchange from Citigroup Global Markets Limited.

Date of purchase:

19 July 2019

Aggregate number of ordinary shares of USD 0.01 each purchased:

2,276,761

Lowest price paid per share (GBp):

266.6500

Highest price paid per share (GBp):

273.7000

Volume weighted average price paid per share (GBp):

270.7808

Source: London Stock Exchange

July 17 2019: Glencore: Transaction in Own Shares

Glencore plc (the Company) announces today it has purchased the following number of its ordinary shares of USD 0.01 each on the London Stock Exchange from Citigroup Global Markets Limited.

Date of purchase:

17 July 2019

Aggregate number of ordinary shares of USD 0.01 each purchased:

2,354,382

Lowest price paid per share (GBp):

269.2500

Highest price paid per share (GBp):

272.2000

Volume weighted average price paid per share (GBp):

270.8892

Source: London Stock Exchange

July 16 2019: Glencore: Transaction in Own Shares

Glencore plc (the Company) announces today it has purchased the following number of its ordinary shares of USD 0.01 each on the London Stock Exchange from Citigroup Global Markets Limited.

Date of purchase:

16 July 2019

Aggregate number of ordinary shares of USD 0.01 each purchased:

2,314,684

Lowest price paid per share (GBp):

267.0000

Highest price paid per share (GBp):

274.7000

Volume weighted average price paid per share (GBp):

271.8335

Source: London Stock Exchange

July 15 2019: Glencore: Transaction in Own Shares

Glencore plc (the Company) announces today it has purchased the following number of its ordinary shares of USD 0.01 each on the London Stock Exchange from Citigroup Global Markets Limited.

Date of purchase:

15 July 2019

Aggregate number of ordinary shares of USD 0.01 each purchased:

2,316,822

Lowest price paid per share (GBp):

267.5000

Highest price paid per share (GBp):

271.8000

Volume weighted average price paid per share (GBp):

269.6275

The Company will hold the repurchased shares in treasury. Following the above transaction, the Company holds 936,992,380 of its ordinary shares in treasury and has 14,586,200,066 ordinary shares in issue (including treasury shares). Therefore the total voting rights in Glencore plc will be 13,649,207,686. This figure for the total number of voting rights may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the Company under the FCA's Disclosure Guidance and Transparency Rules.

Source: HongKong Stock Exchange

July 12 2019: Glencore: Transaction in Own Shares

Glencore plc (the Company) announces today it has purchased the following number of its ordinary shares of USD 0.01 each on the London Stock Exchange from Citigroup Global Markets Limited.

Date of purchase:

12 July 2019

Aggregate number of ordinary shares of USD 0.01 each purchased:

2,372,614

Lowest price paid per share (GBp):

265.6000

Highest price paid per share (GBp):

271.4000

Volume weighted average price paid per share (GBp):

267.8716

Source: London Stock Exchange

July 11 2019: Glencore: Transaction in Own Shares

Glencore plc (the Company) announces today it has purchased the following number of its ordinary shares of USD 0.01 each on the London Stock Exchange from Citigroup Global Markets Limited.

Date of purchase:

11 July 2019

Aggregate number of ordinary shares of USD 0.01 each purchased:

2,443,784

Lowest price paid per share (GBp):

264.3000

Highest price paid per share (GBp):

272.5000

Volume weighted average price paid per share (GBp):

266.7256

Source: London Stock Exchange

July 10 2019: Glencore: Transaction in Own Shares

Glencore plc (the Company) announces today it has purchased the following number of its ordinary shares of USD 0.01 each on the London Stock Exchange from Citigroup Global Markets Limited.

Date of purchase:

09 July 2019

Aggregate number of ordinary shares of USD 0.01 each purchased:

2,446,332

Lowest price paid per share (GBp):

265.9500

Highest price paid per share (GBp):

270.7000

Volume weighted average price paid per share (GBp):

268.0147

Source: London Stock Exchange

July 08 2019: Glencore: Transaction in Own Shares

Glencore plc (the Company) announces today it has purchased the following number of its ordinary shares of USD 0.01 each on the London Stock Exchange from Citigroup Global Markets Limited.

Date of purchase:

08 July 2019

Aggregate number of ordinary shares of USD 0.01 each purchased:

2,254,087

Lowest price paid per share (GBp):

269.8500

Highest price paid per share (GBp):

274.5000

Volume weighted average price paid per share (GBp):

272.3233

Source: London Stock Exchange

July 06 2019: Glencore: Transaction in Own Shares

Glencore plc (the Company) announces today it has purchased the following number of its ordinary shares of USD 0.01 each on the London Stock Exchange from Citigroup Global Markets Limited.

Date of purchase:

05 July 2019

Aggregate number of ordinary shares of USD 0.01 each purchased:

2,350,000

Lowest price paid per share (GBp):

267.8000

Highest price paid per share (GBp):

271.3500

Volume weighted average price paid per share (GBp):

269.5336

Source: London Stock Exchange

July 03 2019: Glencore: Transaction in Own Shares

Glencore plc (the Company) announces today it has purchased the following number of its ordinary shares of USD 0.01 each on the London Stock Exchange from Citigroup Global Markets Limited.

Date of purchase: 02 July 2019

Aggregate number of ordinary shares of USD 0.01 each purchased: 2,294,317

Lowest price paid per share (GBp): 274.3000

Highest price paid per share (GBp): 280.9500

Volume weighted average price paid per share (GBp): 277.1465

Source: London Stock Exchange

July 01 2019: Glencore: Transaction in Own Shares

Glencore plc (the Company) announces today it has purchased the following number of its ordinary shares of USD 0.01 each on the London Stock Exchange from Citigroup Global Markets Limited.

Date of purchase: 01 July 2019

Aggregate number of ordinary shares of USD 0.01 each purchased: 2,350,000

Lowest price paid per share (GBp): 276.2000

Highest price paid per share (GBp): 280.9000

Volume weighted average price paid per share (GBp): 278.3969

Source: London Stock Exchange

June 27 2019: Glencore: Transaction in Own Shares

Glencore plc (the Company) announces today it has purchased the following number of its ordinary shares of USD 0.01 each on the London Stock Exchange from Citigroup Global Markets Limited.

Date of purchase: 27 June 2019 Aggregate number of ordinary shares of USD 0.01 each purchased: 500,000 Lowest price paid per share (GBp): 254.5500 Highest price paid per share (GBp): 280.0000 Volume weighted average price paid per share (GBp): 274.9057

Source: London Stock Exchange

June 26 2019: Glencore: Transaction in Own Shares

Glencore plc (the Company) announces today it has purchased the following number of its ordinary shares of USD 0.01 each on the London Stock Exchange from Citigroup Global Markets Limited.

Date of purchase: 26 June 2019

Aggregate number of ordinary shares of USD 0.01 each purchased: 4,000,000

Lowest price paid per share (GBp): 277.0500

Highest price paid per share (GBp): 279.7500

Volume weighted average price paid per share (GBp): 278.6966

Source: London Stock Exchange

June 25 2019: Glencore: Transaction in Own Shares

Glencore plc (the Company) announces today it has purchased the following number of its ordinary shares of USD 0.01 each on the London Stock Exchange from Citigroup Global Markets Limited.

Date of purchase: 25 June 2019

Aggregate number of ordinary shares of USD 0.01 each purchased: 500,000

Lowest price paid per share (GBp): 275.4500

Highest price paid per share (GBp): 281.3500

Volume weighted average price paid per share (GBp): 279.0174

Source: London Stock Exchange

June 21 2019: Glencore: Transaction in Own Shares

Glencore plc (the Company) announces today it has purchased the following number of its ordinary shares of USD 0.01 each on the London Stock Exchange from Citigroup Global Markets Limited.

Date of purchase: 20 June 2019

Aggregate number of ordinary shares of USD 0.01 each purchased: 2,500,000

Lowest price paid per share (GBp): 276.9500

Highest price paid per share (GBp): 282.1500

Volume weighted average price paid per share (GBp): 279.7536

Source: London Stock Exchange

June 19 2019: Glencore: Transaction in Own Shares

Glencore plc (the Company) announces today it has purchased the following number of its ordinary shares of USD 0.01 each on the London Stock Exchange from Citigroup Global Markets Limited.

Date of purchase: 19 June 2019

Aggregate number of ordinary shares of USD 0.01 each purchased: 2,499,321

Lowest price paid per share (GBp): 272.5500

Highest price paid per share (GBp): 280.3000

Volume weighted average price paid per share (GBp): 276.9605

Source: London Stock Exchange

June 18 2019: Glencore: Transaction in Own Shares

Glencore plc (the Company) announces today it has purchased the following number of its ordinary shares of USD 0.01 each on the London Stock Exchange from Citigroup Global Markets Limited.

Date of purchase: 18 June 2019

Aggregate number of ordinary shares of USD 0.01 each purchased: 2,500,000

Lowest price paid per share (GBp): 270.2000

Highest price paid per share (GBp): 280.0500

Volume weighted average price paid per share (GBp): 274.7155

Source: London Stock Exchange

June 17 2019: Glencore: Transaction in Own Shares

Glencore plc (the Company) announces today it has purchased the following number of its ordinary shares of USD 0.01 each on the London Stock Exchange from Citigroup Global Markets Limited.

Date of purchase:

17 June 2019

Aggregate number of ordinary shares of USD 0.01 each purchased:

2,500,000

Lowest price paid per share (GBp):

269.0500

Highest price paid per share (GBp):

273.2000

Volume weighted average price paid per share (GBp):

271.1046

Source: London Stock Exchange

June 14 2019: Glencore: Transaction in Own Shares

Glencore plc (the Company) announces today it has purchased the following number of its ordinary shares of USD 0.01 each on the London Stock Exchange from Citigroup Global Markets Limited.

Date of purchase:

14 June 2019

Aggregate number of ordinary shares of USD 0.01 each purchased:

2,500,000

Lowest price paid per share (GBp):

270.0500

Highest price paid per share (GBp):

274.1000

Volume weighted average price paid per share (GBp):

271.6361

Source: London Stock Exchange

June 13 2019: Glencore: Transaction in Own Shares

Glencore plc (the Company) announces today it has purchased the following number of its ordinary shares of USD 0.01 each on the London Stock Exchange from Citigroup Global Markets Limited.

Date of purchase:

13 June 2019

Aggregate number of ordinary shares of USD 0.01 each purchased:

2,500,000

Lowest price paid per share (GBp):

267.1500

Highest price paid per share (GBp):

272.7000

Volume weighted average price paid per share (GBp):

271.1642

Source: London Stock Exchange

12.3 Share Capital

January 03: Glencore: Total Voting Rights

Total Voting Rights

Pursuant to DTR 5.6.1 of the FCA's Disclosure and Transparency Rules, Glencore notifies the following:

At close of business on 31 December 2019, Glencore's issued share capital consisted of 14,586,200,066 ordinary shares of US$0.01 each. Each ordinary share carries one voting right except for 1,261,887,525 shares which the Company held in treasury.

Therefore, the total number of voting rights in Glencore at that date was 13,324,312,541.

The above figure of 13,324,312,541 may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the Company under the Financial Conduct Authority's Disclosure Guidance and Transparency Rules.

Source: London Stock Exchange

12.4 Press Releases

March 05: 2019 Annual Report of Glencore plc

Glencore plc ("Glencore" or the "Company") has today:

published its Annual Report for the year ended 31 December 2019 ("Annual Report") on its website www.glencore.com as required by DTR 6.3.5 R (3); and

submitted a copy of the Annual Report to the UK National Storage Mechanism in accordance with LR 9.6.1 R.

The Annual Report will shortly be available for inspection on the National Storage Mechanism: www.morningstar.co.uk/uk/NSM

Glencore will hold its 2020 Annual General Meeting in Zug on 6 May 2020. Further details will be available in the notice of meeting, which will be released later this month.

The Appendix to this announcement contains the following additional information which has been extracted from the Annual Report for the purposes of compliance with DTR 6.3.5 only:

a description of principal risks and uncertainties;

a note on related party transactions; and

the Directors' Responsibilities Statement.

Source: London Stock Exchange

February 18: Glencore: 2020 Distribution Timetable

Glencore plc has today announced that its Board is recommending an aggregate distribution of US$0.20 per share in respect of the 2019 financial year ended 31 December.

Distributions will be declared and paid in U.S. dollars, although Shareholders on the Jersey register will be able to elect to receive their distribution payments in Pounds Sterling, Euros or Swiss Francs. Shareholders who hold shares on the Jersey Register, through the Computershare HK Nominee, will receive their distribution payment in Hong Kong Dollars, converted on the Jersey applicable exchange rate reference date. Shareholders on the Johannesburg register will receive their distributions in South African Rand.

Subject to shareholder approval, the distribution will be made from the capital contribution reserves of the Company in two equal tranches of $0.10 payable in the first six months of the 2020 financial year (H1) and second six months of the 2020 financial year (H2) in accordance with the following:

Source: London Stock Exchange

February 18: Glencore : Preliminary Results 2019

Glencore's Chief Executive Officer, Ivan Glasenberg, commented: "Our performance in 2019 reflected the prolonged and uncertain trade deal negotiations, generally weaker prices for our key commodities and some operational challenges experienced at our ramp-up/development assets. Adjusted EBITDA declined 26% to $11.6 billion.

"Our Marketing business finished 2019 on a strong note, generating Adjusted EBIT of $2.4 billion, in line with 2018, with an excellent performance from oil and a stronger second half metals' contribution, helping to offset the cobalt headwinds experienced in the first half.

Source: London Stock Exchange

February 18: Glencore's commitment to a low-carbon economy

In February 2019, Glencore published its climate change position statement (position statement), Furthering our commitment to the transition to a low-carbon economy, which is available on our website.

Today we update our performance against our position statement and for the first time disclose a Scope 3 emissions projection for our business.

Key highlights include:

Paris-consistent strategy/capital discipline

We project a c.30% reduction in Absolute Scope 3 emissions by 2035. This includes natural depletion of our oil and coal resource base over time.

Our 2019 capital expenditure was weighted towards energy transition materials, including African copper and cobalt and nickel in Canada.

New Scope 1 and 2 targets

We are on track to achieve a near doubling our first GHG reduction target of reducing emissions intensity by at least 5% by 2020 compared to a 2016 base line. We expect to achieve a c.10% reduction.

New longer-term Scope 1 and 2 targets that support the Paris goals will be announced during 2020.

Alignment with TCFD

We continue to implement the recommendations of the TCFD in our annual reporting. Details of our performance will be published in our Annual Report 2019 in late February 2020.

We are incorporating climate change into operational planning, most recently in our new Tailings Storage Facility protocol.

Source: London Stock Exchange

February 04: Glencore: Full Year 2019 Production Report

Highlights

Own sourced copper production of 1,371,200 tonnes was 82,500 tonnes (6%) lower than in 2018. Approximately half of this (40,800 tonnes) related to the African Copper assets, with Katanga's ramp-up (+82,100 tonnes, meeting its full-year revised target) partially offsetting Mutanda scaling down and placement into temporary care and maintenance and Mopani's extensive smelter refurbishment shutdown. The remainder primarily comprised relatively minor portfolio changes and maintenance.

Source: London Stock Exchange

November 19 2019: Glencore: 2019 investor update presentation

Glencore plc will host an investor update presentation on Tuesday, 3 December 2019 at 2 pm UK.

Arrangements

The investor update presentation will be screened by the Regulatory News Service of the London Stock Exchange and will be available on our website at 1 pm UK.

Source: London Stock Exchange

October 25 2019: Glencore: Third Quarter 2019 Production Report

Highlights

Own sourced copper production of 1,015,800 tonnes was 47,300 tonnes (4%) lower than the comparable prior period, mainly reflecting: (i) Mutanda's re-optimised 100,000 tonnes p.a. plan (from 200,000 tonnes), impacting the current period by 67,000 tonnes; (ii) Mopani's smelter shut for extensive refurbishment (21,600 tonnes of metal); and (iii) disposal/depletion of 2 South American assets in the base period (20,200 tonnes), partly offset by Katanga's ramp-up (66,500 tonnes favourable).

Own sourced cobalt production of 34,400 tonnes was 5,900 tonnes (21%) higher than the comparable prior period, primarily reflecting Katanga's ramp-up.

Own sourced zinc production of 809,200 tonnes was 23,100 tonnes (3%) higher than the comparable prior period, mainly reflecting the contribution of Lady Loretta mine (Mount Isa) and stronger production at McArthur River, partly offset by lower production from Antamina, basis an expected temporary transition to lower zinc-bearing areas of the mine, and a reduction at Kazzinc, mainly related to ground stability issues at Tishinsky mine.

Own sourced nickel production of 89,400 tonnes was slightly (2%) lower than the comparable prior period, mainly relating to Koniambo, which experienced a challenging H1 2019 ramp-up period.

Attributable ferrochrome production of 1,030,000 tonnes was 115,000 tonnes (10%) lower than the comparable prior period, mainly relating to additional maintenance days undertaken in Q3 2019.

Coal production of 104.0 million tonnes was 7.3 million tonnes (8%) higher than the comparable prior period, mainly reflecting the full year effect of the HVO and Hail Creek acquisitions in 2018, and higher production at Prodeco following its increased mine development in 2018, partly offset by lower production from Cerrejon, due to dust constraints.

Glossary

ADVT: Average Daily Volume of shares Traded

Annual Return: Dividends Paid In a 12-Month Period/Price at the Beginning of the Period + Capital Gain or Loss over 1 Year/Price 1 Year Ago (%)

Current Ratio: Current Assets/Current Liabiliites (times)

Debt/Equity: Net Debt/Net Assets %

Dividend Yield: Dividend Per Share/Share Price (%)

EBIT Margin : Earnings Before Interest and Tax/Revenue (%)

Income during the n years (3/2/1): Dividends received during the Period

Moving Average Price (n periods): Sum of Prices for each Period/Number of Periods

PV1000: Present value of 1000 invested 1 year/'n' years ago

Price Close/Moving Avg Price: Latest Price/Moving Average Price

Price/NTA: Closing Share Price/Net Tangible Assets Per Share (times)

Price/Sales: Share Price/Sales Per Share (times)

Relative Price Change [RPC]: Relative price change is price change of stock with respect to Benchmark Index

Relative Strength (6 Months): Price close today/Price close 6 months ago, then ranked by percentile within the entire market.

Return on Equity (Shareholders' Funds): Net Profit/Net Assets (%)

TSR: Total Shareholder Returns is expressed as an annualized rate of return for shareholders after allowing for capital appreciation and dividend

TTM: Trailing 12 Months

Total Liabilities/Total Assets: Total Liabilities/Total Assets

Turnover Rate: value of annual trading volume as a percentage of market capitalisation

Volume Index (VI): Number of shares traded in the period/Average number of shares traded for the period

Volume Weighted Average Price (VWAP): The Volume Weighted Average Price (VWAP) is the summation of turnover divided by total volume in the same period.

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