Glencore (GLEN.L) slumped more than 15 percent to a new all-time low after a bearish note from broker Investec that raised doubts over the mining and commodities company’s valuation and high debt levels.
Chief executive Ivan Glasenberg said in an interview that he believed the company’s balance sheet is “in good shape”. The drastic move offers a grim view of commodity prices that undermines the investment case for the sector.
Miner Glencore said it will cut its capital expenditure target for the year and book an impairment charge on the value of its assets in Chad as a result of falling oil prices, as it reported mixed first-half production.
The company said that following the sharp decline in oil prices in late 2014 and continuing into this year, significant amendments were made to Chad’s work programme, with the objective of preserving value for the long term, while reducing cash outlays in the near term. As...