JOHANNESBURG (miningweekly.com) – Operationally, 2024 was a strong year for Glencore, CEO Gary Nagle highlighted on Wednesday, when the London- and Johannesburg-listed diversified mining and marketing company’s industrial assets were reported to have delivered full-year production numbers within their original guidance ranges.

“If you look at how we performed for the year, 2024 is the highest production that business has had over the last three years,” Nagle pointed out during the results presentation covered by Mining Weekly. (Also watch attached Creamer Media video.)

“Another very, very pleasing result. Again, a big contribution from the metals business,” Nagle added.

Recommended is a $0.10 per share ($1.2-billion) base cash distribution, together with a top-up buyback of $1-billion ($0.082 per share), to be concluded before the release of 2025 first-half results on August 6, when the announcement of further shareholder returns is planned.

Free cashflow generated hit the $4.8-billion mark.

“The strength of our diversified business model across our industrial and marketing businesses, which focus on the commodities needed for today and tomorrow, has proved itself adept in a range of market conditions,” Nagle emphasised.

Adjusted earnings before interest, taxes, depreciation and arbitration (Ebitda) were a 16%-lower $14.4-billion. Also 16% lower at $10.5-billion were funds from operations.

The decline in adjusted Ebitda, particularly within the industrial segment, was mainly a function of lower average energy coal prices year-over year. 

In June 2023, Glencore agreed to dispose of its interest in Viterra in a cash and shares transaction with Bunge.

For its 50% stake, Glencore will receive $1-billion in cash and 32.8-million Bunge shares (15%) in the combined group.

Over the last few years, Glencore has simplified the portfolio, by closing or disposing of more than 20 assets. At the same time, it has also enhanced its portfolio of organic projects.

Regarding copper, Nagle said: “We have great value projects to build, and we will build these great value projects in the right way. But, while we wait for the market to recover, the best thing we can do is continue to buy back our base business of a million tons a year. So, it's not just buy versus build, it's buy versus build versus buy back, and we will continue to allocate capital in the most capital efficient, value accretive way for our shareholders.”

‘BUY’ RECOMMENDATION

“Weaker coal prices have been a major headwind over the past six months, but we see value at current levels and the shares offer sector-leading shareholder returns in 2025,” Deutsche Metals-Mining stated in a ‘buy’ note.

DIRECTOR FROM SOUTH AMERICA

Glencore this week appointed María Margarita Zuleta, who has been dean of the School of Government of Colombia’s Universidad de los Andes in Bogotá since 2019, as an independent non-executive director with immediate effect, amid Glencore chairperson Kalidas Madhavpeddi describing having a director join from South America as helpful given Glencore’s asset and projects base in the region.

Zuleta began her career as a Colombian lawyer in private practice, becoming a partner of Brigard & Urrutia in Bogotá. She has served on the boards of several Colombian companies since 2005 and now serves on the boards of Corficolombiana, which is listed on the Colombian stock exchange, Proindesa, and Aval Valor Compartido.

She is a former Colombian Deputy Justice Minister and a former director of the Presidential Programme against Corruption.

Between 2005 and 2012, she was general counsel of Prodeco during its ownership by Glencore and Xstrata, following which she was appointed DG of the National Public Procurement Agency of Colombia.