#10 Snapshot Into Glencore Troubles

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#10 Snapshot Into Glencore Troubles

Transcript of #10 Snapshot Into Glencore Troubles

#10 Snapshot Into Glencore Troubles

#1 Glencore is World’s Largest Miner With Market Cap of $16.3 Bln (as of 5th Oct 2015)

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#2 Glencore Has Net Debt of $30 blnof Which $18 bln Is Short Term Capital

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#3 Glencore Borrowed Huge Capital At Interest Rate Higher Than Prevailing Rates

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#4 China Demand For BasemetalsSlowing Since 2012

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#5 Every 10% Drop In Copper Prices Pulls Down Earnings By $1.6 bln

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#6 Glencore Shutdown Copper Mines of Capacity 400,000T

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#7 Sold Off Zinc Inventories Worth $2.5bln To Pay-off Part Of Its Debt

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#8 The Company Has Debt Obligation of

• $350 mln 6% bond maturity on Oct. 15• $1.25 billion of 1.8% notes that fall due Oct. 23

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#9 Glencore Stocks Have Plunged More Than 80% Since May 2015

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#10 If Commodity Prices Stays Lower For Longer Period, Glencore Credit Ratings Might Be Cut To Junk Status

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Source - CommTathya Research Desk- Thomson Reuters

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