Glencore: Two Cash Cows Are Better Than One

2025-05-18 10:01:00 ET

Summary

• Glencore's dual focus on coal and commodities trading creates two robust cash-generating engines, supporting a strong investment case despite past share underperformance.
• Recent coal acquisitions, especially Cerrejón and Elk Valley Resources, have delivered outsized returns, transforming coal into Glencore's largest EBITDA contributor.
• Shareholders overwhelmingly backed retaining coal assets, favoring consolidated cash flows over a spinoff, reflecting confidence in management’s capital allocation.
• Glencore’s improved cash flow profile and opportunistic asset buys position it well for future shareholder value creation.

Glencore ( OTCPK:GLNCY ), the Swiss trading and mining company has so far failed to deliver for shareholders. Since IPO, the stock has seen two severe crashes, and we may be about halfway into a third. ...

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