Glencore: Rising Metallurgical Coal Production Should Support Share Price In 2025

2025-05-07 09:46:43 ET

Summary

• Switzerland-based Glencore is a major producer/trader of commodities. Due to higher margins, most of its profits come from the production units and more specifically from copper and coal.
• The company has been increasing its exposure to metallurgical coal and this move has so far proved to be beneficial.
• While trading earnings are broadly stable, production earnings are highly volatile, as they depend not only on output but also on sales price.
• Even if the average sales price for copper and coal falls 20% this year, Glencore share price still looks relatively cheap when dividend and buyback are taken into consideration.

Glencore ( GLCNF ) is a commodity giant whose share price has more than halved since its early 2023 peak. The time has come to give it a fresh look and decide if the time has come to turn bullish.

A quick overview of Glencore and its businesses

Glencore plc is a Switzerland-based commodity producer and trader with operations across the globe. The company is primary listed in London (LSE: GLEN) and Johannesburg (JSE: GLN) so that if you plan to use the US-listed ticker GLCNF, option trading will not be accessible to you. This may be a detail for most readers but an important one to keep in mind if you are a covered call lover for instance....

Read the full article on Seeking Alpha

For further details see: