Jump to content

Glencore share price uptrend supported by FY21 results


MongiIG

Recommended Posts

Glencore results show a v-shaped recovery and shareholders are being rewarded through dividend and buyback.

bg_Glencore.jpgSource: Bloomberg
 Shaun Murison | Senior Market Analyst, Johannesburg | Publication date: Wednesday 16 February 2022

Glencore preliminary results for FY 2021

Glencore has released preliminary results for the full year 2021 (FY21). These can be summarised as follows (FY21 vs FY20):

  • Revenue +43%
  • Adjusted EBITDA +84%
  • Earnings per share (EPS) $0.38 (-$0.14 in FY20)
  • Funds from operations +105%
  • Shareholder returns of $4.0 billion announced, comprising a proposed $0.26/share ($3.4 billion) base distribution in respect of 2021 cash flows, alongside a new $550 million share buyback program

The group has set aside $1.5 billion in provisions in lieu of ongoing investigations into conduct issues in the US, UK and Brazil which are expected to be resolved in 2022.

Glencore remains focused on decarbonisation efforts looking to sustainably deplete its coal operations over time. The company’s key metals (copper, zinc and nickel) align with cleaner green energy initiatives globally.

Strong cash flows from a v-shaped earnings recovery, manageable debt and good shareholder returns, combined with a core focus on global climate friendly commodities, suggest that the forward Price to Earnings multiple of roughly 6.7 times could be attractive for investors with a long-term time horizon on the stock.

Glencore – technical view

Glencore%201602.pngSource: ProRealTime

 

The share price of Glencore remains in an uptrend, although in the short-term the suggestion is that the share price is overbought.

Traders respecting the long-term uptrend might prefer to look for long entry into a correction from overbought territory, followed by a bullish price reversal at either the 408.15 or 387 support levels.

Longer term upside targets for the share are considered at 441.90 (recent high) and 452 (overhead trend line resistance).

Link to comment

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • image.png

  • Posts

    • Recently, U.S. Senator Bill Hagerty from Tennessee spoke at the Bitcoin conference, stating his efforts to push for Bitcoin-supportive legislation to promote freedom and opportunity. This year, cryptocurrency has become a key battleground in the election campaigns. It remains to be seen whether future policies on cryptocurrency will improve.
    • The digital landscape is undergoing a profound transformation as attention, once a freely given commodity, is increasingly recognized as a valuable asset. Layer3 is at the forefront of this revolution, pioneering a new economy where attention can be owned, traded, and monetized   This innovative approach empowers individuals to monetize their engagement, providing unprecedented control over personal data. Simultaneously, advertisers benefit from transparent metrics that optimize campaign performance. Content creators are presented with diverse revenue avenues beyond traditional advertising, while the overall ecosystem experiences a more equitable distribution of value.   The implications of Layer3 extend across various sectors. Social media platforms, for instance, can leverage this technology to revolutionize user engagement and monetization strategies. Tokenomics play a crucial role in driving Layer3's economy, incentivizing participation and rewarding value creation. While challenges such as data privacy and market volatility exist, the potential benefits of Layer3 are immense   Anticipation is building as its native token $L3 is on Bitget Pre-market as users await its listing on the exchange. This milestone is expected to significantly increase the token's visibility and accessibility, potentially driving substantial growth and attracting new investors. As the countdown begins, the crypto community watches with keen interest, eager to see how Layer3 will perform in this new chapter.
    • I've been exploring the world of play-to-earn gaming recently, looking for something that's not just about endless grinding but actually offers a fun and rewarding experience. OGC really stood out to me because it combines gaming with a sense of community in a unique way. OGC isn't just a game; it's a platform where you can play, earn, and even help shape its future. You're not just a player; you're part of a community with a voice. The idea of earning crypto while playing games is exciting, but what makes OGC special is its focus on community involvement. Your feedback can directly influence the development of the game, which is a big deal. I've also heard that the OGC token is available for pre-market trading on Bitget. While I'm still getting to know the platform and its features, it's definitely something to keep an eye on. Has anyone else tried OGC? What has your experience been like? I'd love to hear your thoughts and any tips you might have.
×
×
  • Create New...
us