Menno Gerard Cornelis Sanderse's questions to Glencore plc/ADR (GLNCY) leadership • Q2 2017
Question
Menno Sanderse inquired about Glencore's strategic interest in deploying capital into iron ore and aluminum, given their respective positions in the commodity cycle. He also requested more information on the previously announced accounting review at Katanga related to the capitalization of certain inventories.
Answer
CEO Ivan Glasenberg stated that while iron ore is an early-cycle commodity, Glencore would consider an asset if it met the company's IRR criteria based on internal price forecasts. For aluminum, he noted Glencore already has significant exposure via its stakes in Rusal and Century Aluminum. CFO Steven Kalmin addressed the Katanga inquiry by stating that any potential adjustment from the review is not expected to materially impact Glencore's consolidated financial position.