Performance of miners of base metals and precious metals on August 22
On Monday, August 22, the stocks related to base metals weakened whereas precious metal–related stocks also fell. At 3:10 PM EDT, the PowerShares DB Base Metals ETF (DBB) fell by ~0.6% and the SPDR S&P Metals & Mining ETF (XME) gained ~0.37%. The SPDR Gold Shares ETF (GLD) fell by ~0.19%.
Glencore moving closer to debt reduction target
Glencore (GLNCY), the metals mining and trading giant, is on its way to reaching its debt reduction target by the end of 2016. Glencore started this year with a target to reduce its debt to $17 billion–$18 billion by the end of 2016.
In the middle of 2015, Glencore’s debt was ~$30 billion. The series of steps taken by Glencore included selling off assets, as well as cutting dividend payments and stock offerings. These steps accelerated its debt reduction process.
The completion of the sale of major mines such as Australia’s Cobar copper mine, the Lomas Bayas copper mines in China, and the Vasilkovskoye gold mine in Kazakhstan are expected to move Glencore much closer to its target. Glencore’s 1H16 earnings are scheduled to be released on Wednesday, August 24. The Market is focusing on Glencore’s debt burden in the upcoming 1H16 earnings report.