PRESS: Glencore To Spin-Off Mining Royalties Into New Company

LONDON (Alliance News) - Swiss-based mining company Glencore PLC said on Monday it is preparing ...

Alliance News 17 July, 2017 | 6:15PM
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LONDON (Alliance News) - Swiss-based mining company Glencore PLC said on Monday it is preparing to establish a new company by spinning off its portfolio of mining royalties, according to the Financial Times and The Telegraph.

The company is looking to seed royalty agreements worth in excess of USD300.0 million into the new company, while looking for a strategic partner to fund further deals. The mandate for the new company is to search for deals in copper, zinc, nickel and cobalt, with the view of an eventual stock listing.

Glencore would plan to mirror the model of companies such as Franco-Nevada, which does not own mines but instead "stream" supply from miners for resale. In return, the streaming company advances loans to the miner to assist with funding capital projects.

The Telegraph said the spin-off company could be launched by the end of 2017, and would include the rights to stream produce from the Antamina copper-zinc mine in Peru, which Glencore co-owns with BHP Billiton PLC.

https://www.ft.com/content/5e66ce86-6aec-11e7-b9c7-15af748b60d0?mhq5j=e3

http://www.telegraph.co.uk/business/2017/07/17/glencore-mulls-spin-off-company-snap-mining-royalties/

Shares in Glencore closed up 2.0% at 322.75 pence on Monday.

By Dayo Laniyan; dayolaniyan@alliancenews.com

Copyright 2017 Alliance News Limited. All Rights Reserved.

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Securities Mentioned in Article
Security Name Price Change (%) Morningstar Rating
Glencore PLC 346.55 GBX -0.63
BHP Billiton PLC 1,344.00 GBX -0.59
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