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 $1.0 billion, as well as a cash distribution of around $1.2 billion.
Glencore swung to a pretax loss of $998 million in 2024 from a profit of $5.42 billion in 2023, even as revenue rose 6.0% to $230.94 billion from $217.83 billion.
Glencore reported an ‘other expense’ of $2.12 billion, 67% higher than $1.27 billion in 2023, hurting its bottom line. The figure includes $445 million in foreign exchange losses, $295 million in ‘legal and government proceedings’, and $870 million worth of closed sites rehabilitation provisions.
In addition, the cost of goods sold rose by 8.3% to $224.29 billion from $207.05 billion.
Glencore noted that the spot price of copper on the London Metal Exchange rose 2.2% to $8,653 per tonne in 2024 from $8,464 per tonne in 2023.
The zinc price rose 12% to $2,954 per tonne in 2024 from $2,640 in 2023, and the aluminium price rose 7.7% to $2,527 per tonne in 2024 from $2,346 in 2023.
The lead price fell 5.4% to $1,925 per tonne in 2024 from $2,035 in 2023, and the nickel price fell 7.7% to $15,111 per tonne from $16,375 in 2023.
The gold price rose 27% to $2,625 per ounce in 2024 from $2,063 per ounce in 2023, and the silver price rose 20% to $29 per ounce from $24 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 $0.10 per share ‘base cash distribution’ for 2024, which it said amounted to around $1.2 billion. This was down from $0.13 and a total of $1.6 billion for 2023. Glencore also announced a ‘top-up’ share buyback worth $1.0 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 R 77.00 in Johannesburg.
Copyright 2025 Alliance News Ltd. All Rights Reserved.
