Glencore to issue stock, cut debt amid weak commodity prices

By The Associated Press | Posted - Sep. 7, 2015 at 4:50 a.m.



This archived news story is available only for your personal, non-commercial use. Information in the story may be outdated or superseded by additional information. Reading or replaying the story in its archived form does not constitute a republication of the story.

GENEVA (AP) — Swiss commodities giant Glencore has announced a $10.2 billion plan to cut debt and issue shares to adapt to plunging market prices.

The plan involves issuing $2.5 billion of shares, as well as suspending its dividend, further reducing its capital expenditures and selling $2 billion in assets through the end of next year.

Glencore said in a statement Monday that the moves are "prudent" in the face of market volatility and speculation. They come on top of cuts to capital expenditure and costs already announced last month.

The company said it remains "very positive" about the long-term, saying copper and zinc were "supply-challenged" and key ingredients of future global growth. It predicted thermal coal will have an important place in the global energy mix.

Copyright © The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

The Associated Press

    SIGN UP FOR THE KSL.COM NEWSLETTER

    Catch up on the top news and features from KSL.com, sent weekly.
    By subscribing, you acknowledge and agree to KSL.com's Terms of Use and Privacy Policy.

    KSL Weather Forecast