20th Mar 2020 15:03
(Alliance News) - Glencore PLC's liquidity has improved due to reduced funding requirements amid falling commodity prices, the miner and commodity broker said on Friday, outlining its cash position in the face of the Covid-19 crisis.
The company added that it is yet to experience any "material disruptions" at its operating assets or supply chain.
Glencore said it had USD10 billion in available committed undrawn credit facilities and cash at the end of 2019.
The firm added: "This liquidity has increased since the start of the year due to lower working capital funding requirements, in line with lower commodity prices. In addition, the significant weakening of our key producer currencies against the US dollar and lower oil prices and interest rates have provided substantial cash offsets to the fall in commodity prices."
Glencore explained it has received "strong support" for its banking partners during the annual refinancing of its revolving credit facilities. This is expected to be completed "in the next few weeks".
"The shorter-term facility has a one-year extension, exercisable at Glencore's discretion. The revolving credit facility has no financial covenants, rating triggers, material adverse change clauses or external factor clauses," Glencore said.
The company added that it has taken "precautionary measures", including restricting non-essential travel, due to the spread of the virus.
Glencore shares were 4.6% higher at 122.73 pence each in London on Friday afternoon in London. In Johannesburg, they were up 0.6% at ZAR24.99.
By Eric Cunha; [email protected]
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