HOTTER ON METALS: The Glencore blame game

Of all the mining companies to suffer from the rout in commodity prices, the one grabbing the most headlines is Glencore.

The slew of negative analyst reports on the Switzerland-based company is being matched by the exodus of investor longs and their replacement by hedge fund shorts. While the share price decline might be bamboozling management at the firm, who are watching millions wiped off the company's and their own paper-worth on an almost daily basis, the pressure on ceo Ivan Glasenberg must be immense. Glasenberg joined Glencore’s coal department in 1984 and rose to become ceo in 2002, taking the company to its initial public offering (IPO) in May 2011 and completing its merger with Xstrata in 2013. Glencore’s IPO share price was £5.30, and had fallen to £4.43 by the time the Xstrata deal was announced in February 2012. When the deal was done in May 2013, the share price of combined entity had fallen further, to around £3.31. That merger nonetheless created an industry titan, joining mining with...


Andrea Hotter

September 29, 2015

01:13 GMT

New York