19th Feb 2025 09:11
(Alliance News) - Glencore PLC on Wednesday reported a swing to an annual loss as cost of goods sold increased faster than revenue growth.
The Baar, Switzerland-based miner and commodities trader however hailed a "strong" 2024, and it announced a "top-up" share buyback of USD1.0 billion, as well as a cash distribution of around USD1.2 billion.
Glencore swung to a pretax loss of USD998 million in 2024 from a profit of USD5.42 billion in 2023, even as revenue rose 6.0% to USD230.94 billion from USD217.83 billion.
Glencore reported an "other expense" of USD2.12 billion, 67% higher than USD1.27 billion in 2023, hurting its bottom line. The figure includes USD445 million in foreign exchange losses, USD295 million in "legal and government proceedings", and USD870 million worth of closed sites rehabilitation provisions.
In addition, the cost of goods sold rose by 8.3% to USD224.29 billion from USD207.05 billion.
Glencore noted that the spot price of copper on the London Metal Exchange rose 2.2% to USD8,653 per tonne in 2024 from USD8,464 per tonne in 2023.
The zinc price rose 12% to USD2,954 per tonne in 2024 from USD2,640 in 2023, and the aluminium price rose 7.7% to USD2,527 per tonne in 2024 from USD2,346 in 2023.
The lead price fell 5.4% to USD1,925 per tonne in 2024 from USD2,035 in 2023, and the nickel price fell 7.7% to USD15,111 per tonne from USD16,375 in 2023.
The gold price rose 27% to USD2,625 per ounce in 2024 from USD2,063 per ounce in 2023, and the silver price rose 20% to USD29 per ounce from USD24 in 2023.
Chief Executive Officer Gary Nagle said: "Operationally, 2024 was a strong year for Glencore. Our Industrial assets delivered full-year production numbers within their original guidance ranges, which together with the addition of Elk Valley Resources's steelmaking coal volumes from July 2024, resulted in a 4% growth in copper equivalent volumes year over year. Basis current production plans for our existing operations, we also model a 4% compound annual growth rate to 2028 (in copper equivalents) from 2024."
Glencore bought a 77% stake in Elk Valley Resources, the steelmaking coal business of the US's Teck Resources Ltd, completing the deal at the end of 2023.
Glencore recommended a USD0.10 per share "base cash distribution" for 2024, which it said amounted to around USD1.2 billion. This was down from USD0.13 and a total of USD1.6 billion for 2023. Glencore also announced a "top-up" share buyback worth USD1.0 billion, compared to no such top-up in 2023.
CEO Nagle said: "The strength of our diversified business model across our industrial and marketing businesses, which focus on the commodities needed for today and tomorrow, has proved itself adept in a range of market conditions, giving us a solid foundation to navigate successfully the near-term macroeconomic environment and be well positioned for the future."
Glencore shares were 6.6% lower at 330.10 pence each on Wednesday morning in London, the biggest FTSE 100 decliner. They were 6.1% lower to ZAR77.00 in Johannesburg.
By Tom Budszus, Alliance News slot editor
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