Glencore sells stakes in three assets, gets only $290 million
Swiss commodities trader and miner Glencore (LON:GLEN) confirmed Friday it has sold its stakes in three assets it got after acquiring Xstrata in 2013, raising about $290 million.
In a brief statement, the company said it has completed the sale of its 62.5% interest in the Tampakan copper-gold project, in the Philippines, as well as its 85% stake in the Falcondo nickel operation, in the Dominican Republic, and its 94% stake in the Sipilou nickel project, in Côte d’Ivoire.
Like most of its peers, Glencore — which is due to report half-year results next week —has been battling against a sharp slide in commodity prices, which has forced the company to revise down its spending plans for 2015 and book a sizeable writedown on a recent oil African acquisition.
The company’s stock has dropped to record lows this week, becoming the top loser on FTSE 350 mining index on Friday morning, trading at 175.65p at 3:38pmGMT. This means Glencore shares are now down over 50% since the beginning of the year, under pressure from the rout in the commodity prices.