Tyler Broda

Tyler Broda asked CEO Gary Nagle for his perspective on Glencore's fundamental structure and his 3-5 year vision for the company. He also asked Head of Assets Peter Freyberg about the key operational differences and challenges today versus a decade ago.

Answer

CEO Gary Nagle stated the company's structure is strong and his focus is on evolution, not revolution. This includes growing the recycling business, maintaining strict M&A discipline, and expanding the marketing platform into adjacent areas like carbon. Head of Assets Peter Freyberg noted that stronger long-term commodity demand is now balanced by greater operational challenges in key jurisdictions, making strong ESG and community performance more critical than ever for enabling growth.

Tyler Broda from RBC Capital Markets asked about the outlook for cobalt payabilities over the next 1-2 years and inquired about the progress of the company's partnership strategy with automotive OEMs.

Answer

CEO Gary Nagle expressed confidence that cobalt payabilities will normalize as demand from China recovers and inventories deplete, citing strong long-term fundamentals. He highlighted the company's progress with OEMs, mentioning a collaboration with General Motors, a supply agreement with Tesla, and ongoing discussions with others for broad partnerships that include supply and recycling.

Tyler Broda requested a sensitivity analysis for the royalty and price-linked mechanisms within Glencore's coal business, asking for the best way to model this impact.

Answer

CFO Steven Kalmin acknowledged that price-linked royalties exist in all of Glencore's coal regions (South Africa, Colombia, Australia) but explained that the mechanisms are complex and vary by jurisdiction. He noted that it was a relevant factor given price volatility and suggested that the company could provide more detailed guidance on the topic at its November investor update.