Citi renews coverage on Glencore at ‘buy’

"One of the aspects that has kept us long-term buyers of Glencore is the combination of very cash-generative but considered ‘yesteryear’ commodities, like coal, and ‘future-facing’ commodities, like copper, zinc and nickel, which have a patchy cash-generation track record," Citi said.

"The introduction of EVR coking coal in the business is another cash flow and growth vector as: a) it is one of the most interesting commodities in the medium term; b) there are synergies with the seaborne coking coal business where Glencore is dominant; and c) the coking coal market is ripe for a ‘roll-up play’, and Glencore has successfully done this in other commodities."