London 10/12/2015 - Glencore is prepared for current and even lower commodity prices, it said in a release on Thursday as the company outlined further measures to deal with the slide in commodity prices and the crash in its own share price.
The company has today increased its debt reduction measures to $13 billion from a previous $10.2 billion, with $8.7 billion already achieved.
It has further reduced its capex to $5.7 billion for 2015 and $3.8 billion for 2016 and has targeted it net debt to $18-19 billion by the end of 2016.
Glencore responded quickly to a crash in the company's share price and has already already announced a string of measures which included a cut in copper production of 455,000 tonnes and a reduction in zinc supply of 500,000 tonnes.
“Glencore is well-placed to continue to be cash generative in the current environment – and at even lower prices. We retain a high degree of flexibility and we will continue to review the need to act further as required,” CEO Ivan Glasenberg said in a statement.
Some analysts had expected further supply cuts to be announced today, Macquarie previously forecasted that it could shutter its Murrin Murrin nickel mine.
The share price, which had fallen to an all-time low of 66p in September, was last at 83.08p.
The company will be holding an investor conference call later today.