Glencore profit drive
Mining producers are resuming dividends after prices of bulk commodities recover
Diversified mining and marketing group Glencore would generate significant cash in the next few years that will be distributed as ordinary and special dividends if there were no other compelling growth or acquisition opportunities, CEO Ivan Glasenberg said on Thursday. Mining producers are starting to resume dividends after a marked recovery in the prices of bulk commodities in the second half of 2016, with the exception of Anglo American, which said on Tuesday it would resume dividends at the end of 2017. Glencore has declared a dividend of 7 US cents per share for its 2016 financial year that will be paid in two parts, in the first and second half of 2017. The dividend reflected a 17% increase in funds from operations to $7.8bn, a 40% reduction in net debt to $15.5bn aided by disposals, cost cuts as well as expectations that capital spending in future will be far lower than it has been in the past five years. The results exceeded most analysts’ forecasts. Glencore’s shares added 2...
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