The actions of Glencore They reached their highest peak in almost a decade, encouraged by the metals supercycle, reaching a valuation of the Swiss company at about US $ 74,000 million.
According to the Bloomberg portal, the firm that operates the mines Antamina, The Quenuals Y Antapaccay, in Peru, surpassed its 2018 intraday peak last Tuesday, thanks to massive global stimulus measures that stoked demand for raw materials, and it has also been a big winner from an energy crisis that pushed coal prices to a level record.
At the same time, a green revolution is boosting the long-term prospects of metals, including cobalt and nickel, for products like batteries.
As such, Glencore is expected to post record profits and a bumper dividend when it reports earnings in February. And as the boom draws more investors into commodities, many analysts forecast prices to remain high. This is the case of Goldman Sachs Group Inc., which argued that a commodity supercycle has the potential to last a decade.
While Glencore has underperformed its peers in recent years as it missed out on an iron ore surge that boosted profits at rivals such as Rio Tinto Group, it is now cashing in on higher coal prices. The fuel hit a record high in October amid the energy crisis and Glencore is the world’s largest exporter of the raw material.
Although some of the biggest miners are moving away from the most polluting fossil fuel amid shareholder pressure, Glencore boss Gary Nagle has said he backs the company’s policy of cutting its coal business rather than sell it or spin it off.
Metal prices have also soared as the energy crisis hits zinc and aluminum production in Europe, while Chinese plants are caught up in the drive to curb pollution for the Winter Olympics.
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