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GLENCORE REPORTS NET LOSS OF OVER $1BN IN 2020

JUST months after offloading Mopani Copper Mines to the Zambian government, Glencore, one of the world’s largest global diversified natural resource companies, has reported an annual net loss of US$1.900 billion in 2020.

Glencore a couple of months ago pulled out of Mopani copper Mines based on the Copperbelt citing operational challenges among other issues for selling its 75 percent percent stake in the mine.

The company attributed the loss to equity holders increased by 371 percent, from UIS$400 million in 2019 to US$1,900 billion in 2020, mainly due to impairment charges related to Mopani copper in Zambia and the company’s Colombian coal and African oil portfolio.

It also said that owing to the uncertainty resulting from the COVID-19 pandemic and to support the group’s overall financial position during 2020, the Board elected not to pay any distributions in 2020.

Some of Glencore’s industrial assets were required to temporarily suspend operations during the year in line with national and regional guidance.

The impacts were most notable in Peru, South Africa and Colombia, while Australia and Canada were relatively unaffected.

Glencore’s adjusted EBITDA of US$11.6 billion was flat year-over-year, with stronger marketing and industrial metals offset by weaker coal prices.

Net income pre-significant items was US$2.5 billion, in line with 2019. Significant items were mainly non-cash impairment charges amounting to US$5.9 billion (2019: US$2.4 billion), primarily in respect of Mopani, Colombian coal and the African oil portfolio. Resulting statutory loss was US$1.9 billion.

Glencore is one of the world’s largest global diversified natural resource companies and a major producer and marketer of more than 60 commodities.

The group’s operations comprise around 150 mining and metallurgical sites and oil production assets. Glencore’s companies employ around 145,000 people, including contractors

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