Now that the Swiss commodities group GLENCORE has published its financial figures for 1H24, we want to take a closer look at its product portfolio and, in particular, its decision not to spin off its coal business: GLENCORE has focused on raw materials such as copper, zinc and nickel, metals of the green future, with a view to the future. The Swiss commodities group has been quite successful with this strategy. Quite a few securities traders see a rosy future for these commodities. Unfortunately, prices fell against the optimistic forecasts. As a result, many commodity companies published significantly lower business results, including GLENCORE. However, GLENCORE is likely to be in a better position than many of its competitors. The company can draw on a broadly diversified business mix. GLENCORE also mines silver (9.1 million ounces) and gold (369,000 ounces). The company also has a highly efficient trading department. A number of other commodities, such as oil, are also traded there; this provides additional valuable insight and facilitates market assessments. GLENCORE is probably the only company among the large commodity groups that is active in commodity trading in this way.
GLENCORE's shareholders decided not to spin off the coal business, contrary to the enormous pressure of general opinion. The Group is now following the same path as American oil companies, which are successfully concentrating on their profitable core business. The coal business is considered to be extremely profitable and should be a reliable factor in creating shareholder value and liquidity. Coal is likely to remain a major energy supplier to developing countries for years to come, even if this is not a good thing. The management is skillful, shows foresight and the share price should soon rise above average. On September 6, we succeeded in buying 160 shares at GBP 3.75 (exchange rate: 1.1089) in the model portfolio. Target price: GBP 5.50!
