30th Sep 2015 06:25
LONDON (Alliance News) - Embattled multi-commodities miner and trading house Glencore PLC on Wednesday moved to defend its financial position following recent concerns about its debt pile which have caused its shares to plunge, exacerbating declines it had faced due to the tough conditions in commodities markets.
The FTSE 100 group was the subject of a broker note from Investec earlier this week which asserted there may be no equity value in its shares should commodities prices remain low and its debt levels stay where they currently are.
On Wednesday, Glencore said it has "taken proactive steps to position our company to withstand current commodity market conditions", adding the company "remains operationally and financially robust" and has "positive cash flow, good liquidity and absolutely no solvency issues."
The company said it is working to reduce its debt levels by up to USD10.2 billion and said it has no debt covenants and continues to retain strong lines of credit due to its good relationships with its banks.
"We remain focused on running efficient, low-cost and safe operations and are confident the medium and long-term fundamentals of the commodities we produce and market remain strong into the future," Glencore said.
By Sam Unsted; [email protected]; @SamUAtAlliance
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