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- What is Glencore?
- History of Glencore
- Key Events in the History of Glencore
- What Are the Glencore Business Segments?
- Who Are the Glencore Board Members?
- Glencore's Main Peers and Competitors
- How Can You Invest in Glencore?
- Glencore Shareholder Facts
- Outstanding Bonds of Glencore
- Glencore Credit Rating
- How Can Investors Learn More About Glencore?
What is Glencore?
Glencore Plc is one of the largest commodity producing firms in the world. Its globally diversified portfolio consists of about 150 mining and metallurgic properties, oil production facilities and agricultural assets.
Glencore markets and supplies the commodities it produces to industrial buyers such as steelmakers, automobile manufacturers, power companies and food producers. It is an important link in the supply chain for products consumers use every day.
History of Glencore
Glencore began in 1974 when American, Marc Rich, founded the firm as Marc Rich and Co AG in the Swiss village of Zug.
Key Events in the History of Glencore
|Acquisition||1981||Acquires Granaria, a Dutch grain trading company, which later becomes Glencore Agriculture.|
|Investment||1990||Firm acquires a stake in miner Xstrata (then known as Sudelektra AG).|
|Name Change||1993||Rich’s colleagues execute a management buyout and rename the company Glencore (an acronym for Global Energy Commodity Resources).|
|Acquisition||1995||Acquires Prodeco coal property in Colombia.|
|Pardon||2001||US President Bill Clinton pardons Rich.|
|New CEO||2002||Ivan Glasenberg is appointed the new CEO of Glencore.|
|IPO||2011||Glencore raises about $11 billion in an IPO that values the company at close to $60 billion.|
|Merger||2013||In 2012, Glencore and Xstrata agree to an all-share merger, which they complete in 2013.|
|Attempted Merger||2014||Approaches larger rival Rio Tinto about a merger, but the talks fail to produce a deal.|
|Market Correction||Aug 2015|
|Refinancing||Sept - Dec 2015|
|Tender Offer||2016||Announces plan to purchase up to $1 billion of outstanding Notes from investors.|
What Are the Glencore Business Segments?
Glencore operates a vertically integrated business. This means that the company handles all stages of the commodity lifecycle including production, processing, marketing and distribution.
The company operates in four distinct business segments, each of which produces and/or markets a variety of commodities:
|Segment||Commodity||Business Operation||Operating Region(s)|
|Metals and Minerals||Copper||Mining and processing||Africa, Australia and South America|
|Sourcing and recycling||North America and Asia|
|Smelting and refining||Worldwide|
|Cobalt||Copper mining byproduct||Democratic Republic of Congo (DRC)|
|Nickel mining byproduct||Australia and Canada|
|Recycling (e.g. batteries)||Worldwide|
|Nickel||Production||Australia, Canada and Europe|
|Zinc and Lead||Mining and processing||Australia, South America, Kazakhstan and Canada|
|Smelting and refining||Australia, Canada, Spain, Italy, Germany, the United Kingdom and Kazakhstan|
|Sourcing and recycling||Europe and North America|
|Chrome||Mining, processing and smelting||South Africa|
|Platinum||Mining and processing||South Africa|
|Vanadium||Mining and smelting||South Africa|
|Carbon||Char Technologies – produces electrode paste and char used in the production of ferroalloys||South Africa|
|Other Metals||Processes and sells products from a range of third-party aluminium and alumina producers||Worldwide|
|Physically markets iron ore from third-party producers to customers worldwide||Customer base mostly in Asia|
|Energy||Coal||Producer and exporter of seaborne traded thermal and coking coal||Australia, South Africa and Colombia|
|Oil||Markets crude oil and oil products|
|Agriculture||Grains||Wheat (milling, durum, noodle and feed wheats)|
|Corn (GMO and non-GMO)|
|Canola and Oilseed||Vegetable Oils||Supplies customers worldwide|
|Protein Meal supplier||European Union, Australia, New Zealand and south-east Asia|
|Biodiesel processing||Europe and Argentina|
|Pulses||Direct origination and handling of:||Worldwide|
|Sugar||Marketing||Networks in major exporting regions of Thailand and Brazil|
|Cotton||Sourcing and distribution||Origination offices in the United States, Australia, Brazil, India and west Africa|
|Marketing||Physical commodities (listed above)||Worldwide|
Who Are the Glencore Board Members?
The Executive Board of Glencore consists of nine individuals who oversee the direction of the company:
|Anthony Hayward||Non-Executive Chairman||Health, Safety, Environment and Communities|
|Ivan Glasenberg||Chief Executive Officer||Health, Safety, Environment and Communities|
|Peter Coates AO||Non-Executive Director||Health, Safety, Environment and Communities (Chairman)|
|Leonhard Fischer||Independent Non-Executive Director|
|Martin Gilbert||Independent Non-Executive Director|
|John Mack||Independent Non-Executive Director|
|Patrice Merrin||Independent Non-Executive Director||Health, Safety, Environment and Communities|
|Gill Marcus||Independent Non-Executive Director|
Images sourced from: http://www.glencore.com/who-we-are/our-leadership
Glencore's Main Peers and Competitors
|Anglo American Plc.||A globally diversified mining company based in South Africa||London Stock Exchange (LSE)|
|Archer Daniels Midland||Operates facilities that convert agricultural commodities into food, animal feed and energy||New York Stock Exchange (NYSE)|
|BHP Billiton Ltd.||Australian company that acquires, develops and markets natural resources worldwide||New York Stock Exchange (NYSE)|
|Bunge Limited||Processes oilseeds, wheat, corn and sugarcane||New York Stock Exchange (NYSE)|
|Rio Tinto Plc||UK metals company that mines, processes and markets mineral resources||New York Stock Exchange (NYSE)|
|Vale SA||Brazilian company engaged in the production and sale of iron ore and iron ore pallets for steelmaking||New York Stock Exchange (NYSE)|
How Can You Invest in Glencore?
The ordinary shares of Glencore trade on two exchanges: the London Stock Exchange and the Johannesburg Stock Exchange.
|Symbol||London Stock Exchange: GLEN
Johannesburg Stock Exchange: GLN
|Shares Outstanding||14.42 billion|
|Market Capitalization||(Multiply share price by shares outstanding)|
|Official Accounting Currency||US Dollars|
|Latest Financial Results||http://www.glencore.com/investors/reports-results|
|How Can You Purchase Shares?||
South African shareholders must have a share dealing account with a CSDP or broker.
|Can Investors Buy Ordinary Shares in the United States?||No|
|When Does Glencore Pay Distributions?||Glencore expects to pay distributions semi-annually, usually in May/June and again in September/October|
Glencore, through its subsidiaries, also issues bonds from time to time. These debt instruments are privately placed to qualified institutional buyers consistent with SEC Rule 144A.7
Outstanding Bonds of Glencore
|USD||250m||Floating Rate Note (FRN)||Apr 2018|
The pricing of Glencore’s debt instruments is determined by both market conditions and the company’s credit rating:
Glencore Credit Rating
|Rating Agency||Long-Term Rating||Short-Term Rating||Outlook|
|Standard & Poor's||BBB||A-2||Positive|
How Can Investors Learn More About Glencore?
Investors interested in learning more about the fundamentals that drive Glencore’s business, share price and bond prices may want to read the research reports of analysts who cover the company.
|Clarksons Platou Securities||Jeremy Sussman|
|Credit Suisse||James Gurry|
|Deutsche Bank Securities||Liam Fitzpatrick|
|Exane BNP Paribas||Sylvain Brunet|
|Goldman Sachs||Eugene King|
|Jefferies & Co||Christopher La Femina|
|JP Morgan Cazenove||Fraser Jamieson|
|Liberum Capital||Ben Davis|
|Morgan Stanley||Menno Sanderse|
|RBC Capital Markets||Tyler Broda|
|Renaissance Capital||Johann Pretorius|
|Société Générale||Sergey Donskoy|
|Standard Bank||Tim Clark|