GENEVA – Swiss commodities giant Glencore has announced a $10.2 billion plan to cut debt and issue shares to adapt to plunging market prices.
The plan involves issuing $2.5 billion of shares, as well as suspending its dividend, further reducing its capital expenditures and selling $2 billion in assets through the end of next year.
Glencore said in a statement Monday that the moves are “prudent” in the face of market volatility and speculation. They come on top of cuts to capital expenditure and costs already announced last month.
The company said it remains “very positive” about the long-term, saying copper and zinc were “supply-challenged” and key ingredients of future global growth. It predicted thermal coal will have an important place in the global energy mix.