Decline in Glencore's copper production as pondering withdrawal from primary listing on London Stock Exchange occurs
Headline: Glencore Mulls New York Stock Listing Shift Amid Lower Copper Production
Glencore, the global mining giant, announced a significant drop in Q1 copper production, revealing a 30% decrease to 167,900 metric tons. Concurrently, the company is contemplating a switch in its main stock market listing from the UK to New York, seeking a more favorable valuation[1].
The announcement came as Glencore shares suffered a 4.45% plunge, reaching 252.15p, with losses totaling over 46% in the past year. Despite the gap in production, the company maintained its full-year forecast for 2025 copper output at a range of 850,000 to 910,000 tons.
In 2024, Glencore produced approximately 952,000 tons of copper, a vital component in electric vehicle wiring, green energy plants, data centers, and other applications. Owing to global trade tensions and growing demand for copper, cobalt, and other transition minerals driven by the shift towards electric vehicles and renewable infrastructure, experts anticipate a rebound in copper production in the upcoming months[2].
Meanwhile, Glencore reported a 44% rise in Q1 cobalt production due to higher grades and volumes at its Mutanda mine. However, nickel production declined by 21%. Both Guidance for cobalt and nickel production levels remained steady for the year.
As commodity markets continue to fluctuate due to US tariff news and uncertainty, Glencore forecasts its marketing earnings before interest and tax to remain within its long-term guidance of $2.2 billion to $3.2 billion in 2025 [3]. The group noted that various proposed tariffs could lead to trade flow reorientation and dislocation in the coming months.
Glencore's trading division, profitable with a $6.4 billion record profit in 2022, comprises coal, oil, liquefied natural gas, and related products, in addition to metals. Analysts, however, expressed concerns about Glencore's marketing guidance not being at the top end of the range, given the market's volatility[3].
Furthermore, Q1 thermal coal production fell 7% to 23.4 million tons due to lower output from Australian mines. As one of the largest thermal coal producers and exporters, Glencore produced 99.6 million tons in 2024[4].
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Mining giant could quit London primary listing on valuation woes**It said in March it would begin reducing production at its Colombia mine Cerrejon by between 5million and 10million tons annually.
In February, Glencore revealed its contemplation of transferring its primary stock market listing out of Britain, potentially causing another significant blow to London markets[5].
Chief executive Gary Nagle suggested a preference for an exchange offering the right and optimal valuation, though refraining from expressing a preferred market. London markets have witnessed an exodus of businesses in recent years due to concerns surrounding liquidity, depressed valuations, and limited investor interest in specific sectors like mining[6]. A record-breaking 88 firms either delisted or transferred their primary listing from the LSE in 2021, representing the highest number since the global financial crisis in 2009, according to auditor EY[6].
Sources:[1] Yahoo Finance[2] Investing.com[3] Mining.com[4] UBS[5] BBC News[6] Financial Times
- In the face of a lower copper production, Glencore is considering a shift in its primary stock market listing from London to New York, looking for a more favorable valuation in the finance industry.
- As Glencore weighs the future of its stock market presence, analysts have expressed concerns about its marketing guidance not being at the top end of the range, given the volatile business environment.
- Owing to the growing demands for copper, cobalt, and other transition minerals in the electric vehicle and renewable infrastructure industry, experts anticipate a rebound in copper production in upcoming months.
- As one of the largest thermal coal producers and exporters, Glencore's Q1 thermal coal production fell 7%, highlighting the potential impact of global trade tensions and US tariffs on the company's business.
