Glencore halts heavy bleeding

Picture: Thinkstock

Picture: Thinkstock

Glencore issued a statement via the JSE on Wednesday saying that the business was operationally and financially robust, after a similar update in London appeared to be the trigger that stopped it haemorrhaging value on Tuesday.

The leading international diversified natural resource company, whose shares suffered a giddying fall to a record low at the beginning of the week, said: “We have positive cashflow, good liquidity and absolutely no solvency issues.” A similar statement issued in London on Tuesday seemed to set off a rebound in the shares after they had lost almost a third of their value.

Though still the worst performer in the FTSE 100 index this year, the shares gained 17 per cent on Tuesday, and continued to rise on Wednesday, being up by more than 10 percent in mid-morning trade.

They have a long way to go to claw back losses of more than 70 per cent this year, but the statement added: “Glencore has taken proactive steps to position our company to withstand current commodity market conditions.”

The company, which employs around 181,000 people, including contractors, said: “We are getting on and delivering a suite of measures to reduce our debt levels by up to US$10.2 billion.”




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