LONDON — Rescue plans unveiled by embattled mining companies Glencore and Anglo American in the past year have won over investors. Yet a rally in the stocks is stalling this month.Glencore is barely changed in August and Anglo is up less than 4% after they more than doubled in the year through July. For Glencore, there are now fewer catalysts for gains as the Swiss company is closer to completing a $13bn debt reduction plan, according to Macquarie Group analyst Alon Olsha, who downgraded the stock to neutral last week because of the rally.The world’s biggest mining companies have sold assets, scrapped dividends, reined in spending, and in Glencore’s case sold $2.5bn of stock, to cut debt loads that panicked investors last year as raw-materials prices collapsed. On Wednesday, Glencore investors will get an update on its progress toward a net-debt target of as low as $17bn by the end of the year as it announces first-half profits."Balance sheets are very much on the mend; it looks lik...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.