Table of Contents
Key Points
- Glencore is reassessing its primary London listing amid concerns over UK market valuations, following the trend of firms shifting to U.S. exchanges.
- Glencore announced $2.2 billion in shareholder returns, backed by solid cash flow and disciplined capital allocation, including a $1 billion share buyback.
- Operating across 35 countries, Glencore expects 4% annual growth in copper-equivalent volumes through 2028 while maintaining a strong balance sheet and market resilience.
Glencore Plc, the Swiss commodity trading and mining giant led by South African executive Gary Nagle, is reviewing its primary listing on the London Stock Exchange (LSE). This move comes as more global corporations look to U.S. markets, drawn by deeper pools of capital and higher valuations. If Glencore decides to exit, it would follow in the footsteps of companies like Arm Holdings and Flutter Entertainment, both of which opted for New York listings.
Weighing London’s future
Glencore’s review comes amid mounting concerns over the attractiveness of the LSE, where UK equities have traded at a persistent discount. The company made its London debut in 2011 with a record-breaking $60 billion dual listing alongside Hong Kong, raising $11 billion at £5.30 per share. Since then, its shares have fallen more than 37 percent, despite Glencore remaining one of the LSE’s largest firms with a £40.34 billion ($50.79 billion) market cap.
The review also coincides with a tough year for London listings. Nearly 90 companies have delisted in 2024 alone, underscoring the challenges the exchange faces in retaining global players. Meanwhile, Glencore reported $230.94 billion in revenue, with lower energy coal prices contributing to a 16 percent drop in adjusted EBITDA to $14.36 billion.
However, the company’s strong marketing results helped lift funds from operations by 11 percent to $10.5 billion. Solid cash flow also supported $6.7 billion in capital expenditures, the $7 billion acquisition of EVR, and $1.9 billion in shareholder returns, keeping net debt steady at $11.2 billion.
CEO highlights shareholder focus
Despite market challenges, Glencore remains committed to rewarding investors. CEO Gary Nagle reaffirmed this, saying, “We are pleased to announce $2.2 billion ($0.182 per share) in shareholder returns as part of our capital allocation framework. This includes a $1.2 billion ($0.10 per share) base cash distribution and a $1 billion ($0.082 per share) share buyback.”
He added that the buyback would be completed before the release of the company’s half-year results on August 6, 2025, when Glencore plans to announce further shareholder returns. “Our strong free cash flow generation, currently around $4.8 billion at spot commodity prices, allows us to maintain flexibility while delivering value to shareholders,” Nagle said.
Glencore’s diversified business model remains a key advantage, with exposure to both industrial and marketing operations across critical commodities. “Our portfolio is built for today’s and tomorrow’s needs, and it has proven resilient across different market conditions,” Nagle noted. “This gives us a solid foundation to navigate near-term macroeconomic challenges and position ourselves for long-term growth.”
Expanding global reach
Operating in 35 countries across 60 commodities, Glencore continues to expand under Nagle’s leadership, supported by a workforce of 150,000. Nagle himself holds a $9.24 million stake in the company, aligning his interests with those of shareholders.
Glencore maintains a strong balance sheet, with a net debt-to-EBITDA ratio of 0.78x. Total assets grew 5.3 percent to $130.46 billion, while equity dipped 7.2 percent to $35.66 billion. Looking ahead, the company expects to deliver additional shareholder returns in August 2025 and forecasts 4 percent annual growth in copper-equivalent volumes through 2028.
While the review of its London listing is still in its early stages, Glencore’s focus remains clear: maintaining capital discipline and adapting to shifting market conditions to ensure sustained growth.
