NEW GLENCORE CHIEF WILL BE IN PLUM POSITION AS GROUP RIDES COPPER BULL

GARY NAGLE, who is set to take the reins of Glencore at the end of next month, will be in a plum position, as the firm’s share price has muscled more than 120 percent higher in the past year on bullish commodity prices. Current chief executive Ivan Glasenberg is to retire next month after nearly 19 years at the helm. The commodity trading and mining company’s share price climbed more than 3 percent to R67.10 per share during early trade yesterday before closing the day at R66.66 as commodity prices continue to soar. Glencore has been benefiting from the commodity prices boom – particularly platinum group metals and iron ore – on expectations of increased industrial demand as the economic recovery gathers pace. It has three major revenue streams, with the most important the mining of precious metals, and the majority of the metals produced is copper. There has been a sharp increase in the demand for copper, currently pushing into record territories, as it has risen more than 30 percent in the year-to-date. Last week, the copper price soared to a high, topping its record price, after reaching $13 200 (R1.85 million) a ton as demand rose on economies rebounding from the pandemic. The London-listed company said last month that its copper production rose by 3 percent in the first quarter. It expects its full-year marketing earnings before interest and taxes to be between $2.2 billion and $3.2bn. Momentum Securities portfolio manager Wian van Wyk said Glencore’s share price has risen more than 120 percent within the past year. |