Metals & Mining - Latam: Feedback from our Global Metals & Mining Conference

Research evidence excerpt

Metals & Mining - Latam: Feedback from our Global Metals & Mining Conference

Glencore, Gary Nagle (CEO)

Q&A:

Q: It has been a bit of a crazy 12 months for the world, for metal markets and

for Glencore. Let’s start with the big one. The war in the middle east. Any direct

impact on your business? What does it mean for coal demand? In 2022, the

trading business had a very strong results, should we expect something similar

in 2026? A: Two ways to look at it. War creates disruptions, flows. Glencore’s marketing

business does well in these situations (this was previously seen during Russia/Ukraine).

Big dislocations in commodity flows help this business. Glencore already gave soft

guidance with Q1 production report of how well that business is performing. The other

element is coal. World has moved on and coal is here to stay, as it’s a key resource.

Recognition from those around the world is that you can’t put all eggs in one basket.

Coal is a source of energy, baseload power and cheap. It’s not something that comes in

short term as replacement for LNG, but many countries are looking to diversify. So that

is also positive for Glencore. Also global growth is affected, war is never good for global

growth. As a commodity industry want to see global growth, so that is one slightly

negative of current situation.

Q: More generally, any change to how you are managing your business as the

geopolitical climate evolves? GLEN historically a big seller of product to China,

how is that relationship evolving? A: Have strong relationship with China. Have JVs

with Chinese SOEs. China is 50% of commodity demand. Glencore proudly flies the

Swiss flag and remains apolitical, are there to service customers.

Q: Earlier this year, we learned that Glencore and RIO were considering a