There was more to the share price rises in mining giants Rio Tinto Ltd (LSE:RIO) and Anglo American PLC (LSE:AAL) than just copper, analysts said on Thursday. Copper prices surged this week after former US President Donald Trump proposed a 50% import tariff, but markets had already priced in most of the risk, according to Panmure Liberum analyst Tom Price.
FTSE mining giants Anglo American PLC (LSE:AAL), Rio Tinto Ltd (LSE:RIO), Glencore PLC (LSE:GLEN) and Antofagasta PLC (LSE:ANTO) rebounded on Thursday morning, as copper prices rose and Donald Trump firmed up his plans for a 50% copper tariff. The sector has seen falls across the board the day before, after the US President first floated the copper tariff idea.
Australia's Mining and Energy Union (MEU) said on Wednesday that workers at Glencore's Ulan coal mine had begun a 24-hours strike over pay gap issues.
So, are the clouds finally lifting for Glencore? Well, JP Morgan appears to be upbeat, and its assessment of the miner's prospects follows some upbeat recent coverage from other quarters in the Square Mile.
Santacruz Silver Mining Ltd (TSX-V:SCZ, OTC:SZSMF) announced that it has made the third payment of US$7.5 million to Glencore as part of its previously disclosed acquisition of Bolivian mining assets. The payment is the third in a series under the company's US$40 million Acceleration Option plan, which is set to be completed by October 31.
There's nothing fashionable about coal these days, but Glencore PLC's (LSE:GLEN) latest site visit to its newly acquired coking coal mines in British Columbia suggests it's still capable of digging out value where others aren't looking. Coking coal, the hard stuff used in steelmaking, not the kind burnt in power stations, has become an increasingly tight market, especially for the higher-grade material needed in newer, more efficient blast furnaces.
Glencore's revised coal strategy and resilient marketing segment support a compelling risk-reward profile, despite lower Q1 production. The valuation remains attractive with over 25% upside, driven by normalized EBITDA and solid, strong free cash flow yields. Ongoing share buybacks, Bunge monetization, and resilient cash returns reinforce our buy rating.
Glencore's long-term strategy of owning commodity assets and trading expertise makes it a unique and undervalued player in the mining sector. Despite recent volatility and bearish trends, scale-down buying of GLNCY shares could be optimal, especially with the potential for higher commodity prices ahead. Restructuring and asset shifts suggest Glencore is positioning itself for a mega-merger, which could unlock significant shareholder value.
Glencore PLC (LSE:GLEN) shares were higher after a leading bank reported that the miner and commodities trader is holding its ground in coking coal despite some shifts in the market story. Citi, in a research note, points out that coking coal prices have swung wildly every few years, often driven by changing narratives about supply and demand.
Glencore is deeply undervalued, trading at sub-4x EV/EBITDA and a 60% discount to sum-of-the-parts valuation, despite robust cash generation. The business model's integration of marketing and mining provides resilience across commodity cycles, supporting stable free cash flow and shareholder returns. Key upside catalysts include a copper output rebound, strong cobalt pricing, integration of new steelmaking coal assets, and potential U.S. listing or restructuring.
Glencore PLC (LSE:GLEN) isn't a stock that gets many people excited these days. Once a regular fixture in market chatter, the mining and trading giant has slipped off the radar lately, dogged by falling coal prices, patchy performance at its mines, and a more subdued outlook for its powerhouse Marketing division.
A potential mega-merger between Rio Tinto Ltd (LSE:RIO, ASX:RIO, OTC:RTNTF) and Glencore PLC (LSE:GLEN) is back in focus after a sweeping internal restructuring by the Swiss commodities group, which analysts at Citi say could ease the path to a transaction. But they also caution that any deal would face significant valuation and strategic hurdles.