Swashbuckling

23 February 2017 By Andy Critchlow

The mining giant has recovered from its near-death experience a year and a half ago. Net debt has halved to $15.5 billion and higher prices mean its mines are generating mountains of cash. Resisting the urge to spend it will be Chief Executive Ivan Glasenberg’s biggest challenge.

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Glencore on Feb. 23 reported full-year earnings before interest, tax, depreciation and amortization (EBITDA) for 2016 to $10.3 billion, an 18 percent increase over the previous year. Net income excluding one-off items jumped 48 percent to $2 billion.

Recovering commodity prices boosted free cashflow and allowed the mining giant to beat its own targets for reducing borrowing. Net debt excluding readily marketable inventories fell to $15.5 billion, bellow the company’s previous guidance range of between $16.5 billion and $17.5 billion and ahead of consensus forecasts.

Glencore shares were up 1.3 percent at 330 pence by 0845 GMT on Feb. 23.

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