JAMIE CARR: Glencore turns corner; Oakbay captures headlines
Glencore’s gone for flat-out liposuction, and the change in its fortunes is extraordinary
Glencore turning a corner
It is little more than a year since Ivan Glasenberg attempted to sell the "only a flesh wound" line to fund managers, who responded by whipping off their pinstripes and getting their shorts on faster than you could say, "this baby’s going to zero". There may have been more than a hint of schadenfreude floating around as Glencore’s less than totally skint management was forced to eat a double helping of humble pie, but the speed at which it has reacted to changing circumstances is truly remarkable.Its capital structure has been transformed, with US$6.3bn of assets banged out the door, and it’s on track to get net debt down to a mere $17bn or so by the end of the year, with a view to keeping net debt at a maximum of two times Ebitda throughout the cycle. While certain other miners have attempted to trim the fat by laying off the pudding and steering away from the cheeseboard, Glencore’s gone for flat-out liposuction, and the change in its fortunes is ex...
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