RE: Coal business retained - will continue to boost Glencore's profits.7 Aug 2024 07:20
Https://www.londonstockexchange.com/news-article/GLEN/retention-of-coal-carbon-steel-materials-business/16606252
Kalidas Madhavpeddi, Chair, Glencore, commented:
"Following extensive consultation with our shareholders, whose views were very clear, and our own analysis, the Board believes retention offers the lowest risk pathway to create value for Glencore shareholders today. The expected cash generative capacity of the coal and carbon steel materials business significantly enhances the quality of our portfolio, by commodity and geography, and broadens our ability to fund our strong portfolio of copper growth options as well as accelerate shareholder returns."
The Board also notes that in line with our 2024-2026 CATP, recently approved by more than 90% of voting shareholders, Glencore will continue to oversee the responsible decline of its thermal coal operations over time. Glencore will also assess how best to integrate the EVR assets into our climate transition strategy, having regard to our ICA commitment to develop and adopt a climate transition strategy for EVR, and recognising that the transition away from steelmaking coal for steel production will be slower than thermal coal.
With the decision to retain the coal and carbon steel materials business, the previous Net debt cap shaping our shareholder returns framework is immediately reset at around $10bn, excluding marketing related lease liabilities, along with our continued commitment to minimum strong BBB/Baa ratings.
While the decision has been taken to retain this business today, the Board preserves the option to consider a demerger of all or part of this business in the future if circumstances change
Sign In
Follow the stocks
