2015 Investor Update

RNS Number : 6115I

Glencore PLC

10 December 2015

 

Baar, Switzerland

10 December, 2015

Glencore plc - investor update

Prepared for current and even lower commodity prices through the rapid delivery
 of debt reduction measures

Today, Glencore is hosting an investor update call at 8.30am (GMT). The call will update on the progress made against the debt reduction initiatives announced on 7 September.

Highlights include:

Positive free cash flow:

·    More than $2 billion of free cash flow at spot prices; Glencore will remain comfortably free cash flow positive at materially lower price levels

·     Estimated 2016 EBITDA of c.$7.7bn at current prices

Strong and increasing liquidity:

·    Current liquidity increased to more than $14 billion and will be further enhanced as the debt reduction plan measures are delivered

Debt reduction/capital preservation measures increased to $13 billion (previous target of $10.2 billion) with $8.7 billion already achieved/locked-in

New net debt target of $18-19 billion by the end of 2016 (previous target of low $20s billion):

Industrial asset cash positioning significantly enhanced:

·    Further reduction in capex: $5.7 billion for 2015E and $3.8 billion in 2016E, down from $6 billion and $5 billion respectively

·    Production cuts have reduced overall supply and cash outlay; resources preserved for an improved future margin environment

Marketing remains a unique, low risk defensive earnings driver:

·    Despite significantly lower commodity prices, Marketing adjusted EBIT for 2015E of c.$2.5 billion; underpinned by continued strength in oil and stronger contributions from Agriculture and Metals during the second half

·    2016E marketing EBIT guidance of $2.4-2.7 billion reflects lower working capital levels and reduced copper, zinc, lead and coal volumes

Ivan Glasenberg, CEO, commented:

"In September, we announced a number of measures to reduce our debt. Today we show significant delivery on those commitments, with $8.7 billion achieved to date, and are able to announce an increase in our net debt reduction target measures by almost $3 billion to $13 billion. Glencore is well placed to continue to be cash generative in the current environment - and at even lower prices. We retain a high degree of flexibility and will continue to review the need to act further as required."

Details of the call and presentation material are available on our website:
http://www.glencore.com/investors/investor-call-2015

Please dial in 5-10 minutes prior to the start time using the number / conference ID below

Confirmation Code:                                                    1348329

London, United Kingdom:                                           [phone]

National free phone - United Kingdom:                      0800 279 4992

Johannesburg, South Africa:                                     [phone]

National free phone - South Africa:                            0800 984 126

Hong Kong, Hong Kong:                                            [phone]

National free phone - Hong Kong:                              800 905 740

New York, USA:                                                         [phone]

National free phone - USA:                                        1877 280 2342

Sydney, Australia:                                                      [phone]

National free phone - Australia:                                 1800 040 158

Zurich, Switzerland                                                    [phone]

National free phone - Switzerland:                             0800 345 602

A replay of the call will be available on 10 December 2015 until 8 January 2016.

Replay Passcode:                                                     1348329

London, United Kingdom:                                          [phone]

Johannesburg, South Africa:                                     [phone]

Hong Kong, Hong Kong:                                            [phone]

Geneva, Switzerland:                                                [phone]

New York, USA:                                                         [phone]

Sydney, Australia:                                                      [phone]

For further information please contact:

Investors
Paul Smith	t: [phone]	m: [phone]	[e-mail]
Martin Fewings	t: [phone]	m: [phone]	[e-mail]
Elisa Morniroli	t: [phone]	m: [phone]	[e-mail]
Media
Charles Watenphul	t: [phone]	m: [phone]	[e-mail]
Pam Bell	t: [phone]	m: [phone]	[e-mail]

www.glencore.com

 www.youtube.com/glencorevideos 

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 of over 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. We also provide financing, logistics and other services to producers and consumers of commodities. Glencore's companies employ around 181,000 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.

 

END

 

 

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