Deutsche Bank sees Glencore equity value at mercy of copper, coal prices

Unless Glencore finds a way to win back "broken-hearted" shareholders, the company’s stock is likely to continue to slide, tracking further weakness in copper and coal markets over the next 12 to 18 months, Deutsche Bank analysts predict.

The company’s recent operating performance and its $10 billion debt reduction plan have "broken the trust" between the company and its shareholders, and management needs to do more to rebuild that relationship, the bank said in a note on Tuesday September 29. Deutsche Bank said the Baar-based miner and trader had let investors down in four key ways: it went back on a commitment not to issue more than 5% in new equity; earnings from the trading business have been disappointing; its acquisitions have been...


Mark Burton

September 29, 2015

13:49 GMT