Investor Day 2013

RNS Number : 5954N

Glencore Xstrata PLC

10 September 2013

 

10 September 2013

Baar, Switzerland

Investor Day

Today, Glencore Xstrata plc ('Glencore') is hosting an investor day in London which will provide a detailed update on the progress of the integration, initial results of the portfolio review, synergies identified and approach to capital allocation.

Highlights include:

·      Integration completed within three months with no operational disruption;

·      At least $2 billion of synergies estimated for 2014, materially exceeding the initial merger guidance of $500 million;

o  $450 million to come from marketing synergies as forecast, $175 million from financing synergies and $1.4 billion through cost savings;

·      Operational efficiency on-going through a comprehensive review of assets;

·      Continue to focus on ensuring key projects are delivered in as best a manner as possible;

·      $3.5bn reduction in capital expenditure during 2013 to 2015 (excl. Las Bambas from 2014) with full optionality being maintained;

·      Sustaining capex expected at $4bn, the lower end of previous guidance of $4-5bn;

·      Defensive, diversified asset base with increasingly strong cost curve positions; and

·      Xstrata's greenfield projects have been deprioritised with a material reduction in scope and costs.

Glencore also intends to make an application to the Johannesburg Stock Exchange for a secondary listing. Subject to obtaining the required approvals, Glencore expects the listing to become effective during the fourth quarter of 2013.

Africa is an important and growing market for the Group and South Africa has a strong institutional investor base. The Group's primary listing will remain the London Stock Exchange.

Ivan Glasenberg, CEO, commented:

"We have successfully and rapidly completed the integration of Xstrata, identifying at least $2bn of synergies by 2014. A significant portion of the synergies are in overhead costs at head and regional offices. We are only just starting to comprehensively look at the combined mining and metallurgical operations.

"Glencore will have a diversified and defensive asset base with an increasingly strong cost curve position. With our strong balance sheet and cash flow, I am pleased to remind investors of our commitment to return cash to shareholders.

"This is an interesting time for the sector, and an exciting one for Glencore. There is sound demand for commodities, and we see positive signs of financial discipline across the sector. This provides an environment in which Glencore's owner-manager philosophy will thrive."

The Investor Day presentations will begin at 08:15 (UK) and close at 16:30 (UK). Presentations will be made by:

·      Ivan Glasenberg, Chief Executive Officer;

·      Steven Kalmin, Chief Financial Officer;

·      Tor Peterson and Peter Freyberg, Coal;

·      Chris Mahoney, Agricultural Products;

·      Alex Beard, Oil;

·      Daniel Maté and Chris Eskdale, Zinc;

·      Telis Mistakidis, Copper;

·      Kenny Ives and Peter Johnston, Nickel; and

·      Stuart Cutler and Gary Nagle, Ferroalloys.

All of the presentations will be available to watch via a live webcast, details of which can be found on our website: http://www.glencorexstrata.com/investors/investor-day-2013

The webcast can be viewed at: http://www.media-server.com/m/p/uoguq567

About Glencore Xstrata

Glencore Xstrata is one of the world's largest global diversified natural resource companies. As a leading integrated producer and marketer of commodities with a well-balanced portfolio of diverse industrial assets, we are strongly positioned to capture value at every stage of the supply chain, from sourcing materials deep underground to delivering products to an international customer base. The Group's industrial and marketing activities are supported by a global network of more than 90 offices located in over 50 countries. Our diversified operations comprise over 150 mining and metallurgical sites, offshore oil production assets, farms and agricultural facilities. We employ approximately 190,000 people, including contractors.

For further information:

Paul Smith (Investors)                       Charles Watenphul (Media)

t: [phone]                       t: [phone]

m: [phone]                      m: [phone]

e: [e-mail]             e:[e-mail]

Martin Fewings (Investors)                 Elisa Morniroli (Investors)               Finsbury (Media)

t: [phone]                      t: [phone]                    Guy Lamming

m: [phone]                     m: [phone]                  Dorothy Burwell

e: [e-mail]       e: [e-mail] t: [phone]

Forward looking statements

This document contains statements that are, or may be deemed to be, "forward looking statements" which are prospective in nature. 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 under "Principal risks and uncertainties" in section 1.7 of Glencore's Annual Report 2012 and "Risks and uncertainties" in Glencore's Half-Yearly Results 2013.

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 Financial Conduct Authority and the Rules Governing the Listing of Securities on the Stock Exchange of Hong Kong 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.

 

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