Activist investor Tribeca has told Glencore directors they could add billions in value by retaining coal and embracing the ASX as its primary listing.
business and shift its primary listing to the ASX, where a more “pragmatic” attitude to fossil fuels and the energy transition could add billions to its valuation.has told Glencore directors that London is no longer the global home of mining investment, and the experience of peers like BHP and Metals Acquisition Corp suggests Glencore’s value could rise between 30 per cent and 100 per cent if management adopts an ASX listing, among other recommendations.
“It’s the decision of the shareholders ultimately,” said Glencore chief Gary Nagle of the coal spin-off plan on February 21.last year and the division will soon be expanded through the $US6.93 billion acquisition of a 77 per cent stake in Teck Resources’ Canadian coking coal assets. “Retention and responsible depletion of fossil fuel assets are at the frontier of environmental governance. We see this as being the view of industry leaders, political commentators, and asset managers alike,” he said.“It would be unfortunate for Glencore to forsake responsible stewardship at the juncture after which it would surely be rewarded.
He pointed to the fact that $US15 billion of “pure play” coal miners were listed on the ASX – including Whitehaven, Stanmore, New Hope, Coronado and Yancoal – whereas London’s pure-play coal stocks were limited to the relatively small Thungela Resources.“The LSE is no longer the appropriate forum for Glencore’s shares. Its mining capitalisation is 29 per cent lower than its Australian counterpart,” said Mr Cleary in the letter.
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