Glencore increases debt reduction targets

Glencore has increased its planned target of reducing debt and preserving capital to the tune of $13bn (£8.6bn).

It follows the FTSE 100 mining company’s debt reduction initiatives announced in September, which included a target of $10.2bn.

In a trading update issued Thursday, it said it has already locked in $8.7bn of its target.

It is also planning to bring net debt down to between $18bn and $19bn, with the previous target being in the low $20bns, as well as cutting capital expenditure to $5.7bn this year and $3.8bn next year, down from $6bn and $5bn respectively.

Glencore also noted that it has more than $2bn of free cash flow at spot prices and will remain comfortably free cash flow positive at materially lower price levels.

Current liquidity increased to over $14bn and will be further enhanced as its debt reduction plan is delivered.

Chief executive Ivan Glasenberg said its showed “significant delivery” on the objectives announced just over three months ago.

"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 will continue to review the need to act further as required."