Glencore reports net loss in H1 2015

18 August 2015 (Last Updated August 18th, 2015 18:30)

Swiss commodities and mining group Glencore has reported a net loss of $676m in the six months to June-end due to a decline in raw materials prices.

Swiss commodities and mining group Glencore has reported a net loss of $676m in the six months to June-end due to a decline in raw materials prices.

The company's net income dipped by 56% to $882m from corresponding period a year earlier following a decline in the price of aluminium, nickel and other commodities.

Adjusted earnings before interest, tax and other items declined 29% to $4.6bn compared to the first half of 2014.

Glencore chief executive officer Ivan Glasenberg said: "Against a challenging backdrop for many of our commodities, we have taken a range of pre-emptive actions in respect of our balance sheet, operations and capital spending/recycling in order to preserve our current credit rating and sustain our track record on equity distributions.

"We remain by far the most diversified commodity producer and marketer and are well positioned to benefit from any improvement in pricing when it finally and inevitably materialises."

"Our core industrial assets remain well positioned on their respective cost curves. We remain by far the most diversified commodity producer and marketer and are well positioned to benefit from any improvement in pricing when it finally and inevitably materialises."

During the first half of 2015, period-on-period growth from African copper, albeit overall copper production edged down 3% to 730,900t, zinc production increased 12% to 730,300t and coal production dipped 4% to 68.7 million tonnes.

Separately, the company announced plans to shut its South Africa's Eland platinum mine citing weak prices.

Reuters quoted the company saying in a statement: "Glencore has informed the Department of Mineral Resources and relevant unions of the potential closures."