Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
https://www.ft.com/content/06749158-6e7d-11ea-89df-41bea055720b
Looks like it could be in trouble, not just for us but for other companies as well.
Even though Glencore declared the dividend, it still has to be approved by a vote. 1 - they need to be able to get together to vote and 2- Will they vote to send out that much money right now
I am really hoping the outlook picks up and they can maintain it. A cash infuse right now would be welcome.
Scfc - do you think they will cut the currently committed dividend (based on fiscal 2019 year results) or are you talking about the dividends based on 2020 fiscal year results?
Posted some of that info Friday but the update on the annual financing is new to me.
Sounds like good news to me. Lets hope for a decent Monday.
I especially liked that their liquidity increased. That could be clutch.
But some bad news: https://ftalphaville.ft.com/2020/03/20/1584709572000/Markets-Now---Friday-20th-March-2020/
JP Morgan fears Glencore's credit rating will drop if current spot prices continue.
Glencore says no material disruption so far from coronavirus
https://seekingalpha.com/news/3553851-glencore-says-no-material-disruption-far-from-coronavirus
I read Warren Buffets company had $128 billion cash.
They are definitely going Christmas shopping with all these companies on sale!
Maybe they will buy some Glencore! Like David Herro did during the debt crash. He has been a champion of this company for a while now and I appreciated the vote of confidence when we needed it most. Although he is probably miserable of late like the rest of us.
I honestly don't think they will cut and I guess my speculation on that is really my hope that it is already priced in as a possibility thus contributing to the low share price. And then when they pay as expected it would cause the price to go up because that no payment possibility is removed.
It is really me trying to avoid that this price reflects the fundamentals of the company, which I do not believe it does, but apparently everyone out there selling does.
Speaking of buybacks... Other companies are also getting trashed for all the buybacks they did. In particular I read about the amount of buybacks Boeing did and now will need a handout from the US government.
People are expected to save for rainy days, why aren't companies! But I guess it is hard to when you have these black swan events.
No worries... I am probably just a little bit more sensitive because of all that is crashing.
Hopefully we have some good times coming.
I am a little surprised there is so very little news, positive or negative, coming out for Glencore.
It seems like your responses to my posts make it like I am some professional Glencore basher. Even if I were, a post here would not make any difference to the stock price anyway.
And the other day you said how could I go through the debt crash when I bought after that.. But that is not what I posted when you asked about my share price.
I truly am a long term holder that is extremely discouraged. I would be over the moon if this thing flies like it did after the debt crash.
Yea I know I am negative but not trying to bash, just trying to discuss possible scenarios. Trying to sort all this out. And believe me, if I find any positive news I will surely post it.
The re-issue was from the debt crash. Prior to that they were doing a buyback and then shortly after the buyback did a re-issue at a much lower price that they paid during buyback as part of their debt reduction. My point being, management does not seem to good with managing their money when they are flush with cash. I would be happy with a nice split between debt reduction and dividends.
As for positive speculation, I just posted that I think if the re-upping of the credit line goes well that will be a vote of confidence and maybe we will see an uptick.
I am sure if you go through my posts you will find positive posts full of rainbows and unicorns. You keep insinuating that I am something I am not.
OK - still trying to sort why we usually seem to perform the worst of the lot (not today yeah! except for maybe Rio and yes I am jealous of them!)
Here's another negative thought to throw on the pile:
Is the market maybe pricing in that they will take the drastic action of cutting back or eliminate the already announced dividend? I know that's usually not done but these are not usual times.
This is the same company that was doing a buy back and then had to reissue shares for almost a third of what they bought back at.
Who knows but I want it to be over in a good way already!
Our market cap is now about even with Anglo. Didn't we always have a way bigger market cap then them?
Other miners are coming off their day lows.. We aren't. That's not good.
Who can say? Must be some more bad news out there as we are dropping like a rock.
My real concern is debt levels... When the company had great cash flow, stupid management poured a ton of money in to share buybacks which are so far underwater it is not even funny.
I am concerned and upset. This thing was a high flyer really not too long ago.
I would kill for 1.75 right about now.
We are priced like we are a small rinky dink company.
No one has thoughts on this? Nervois about next weeks financing.
Glen is still sliding on us markets.
Ran across some interesting info about Glencore credit. I am hoping like last time, that credit renewal will be no problem. During the debt scare banks were lined up deep to back Glencore. Not posting to scare, just to share some pertinent facts.
From Wall Street Journal
"The cost of insuring these companies' bonds against default has also risen. On Tuesday, investors were paying more than $485,989 a year to insure $10 million of Glencore's debt against default for five years using credit default swaps, according to IHS Markit. At the start of the year, the same insurance for Glencore cost $127,000. For Anglo American, the cost reached $307,150, up from $84,000."
"Still, these levels were well below the more than $1 million investors needed to pay for insurance at the start of 2016, when they were concerned about its debts amid a commodities downturn at the time. Analysts say they currently have no worries over Glencore's balance sheet."
"A test for Glencore's financing will come as early as next week, when the company renegotiates a $10.55 billion credit facility with a syndicate of banks."
And turn around they are!
Liking this so far.