Charlie Gibson – Head of mining at Edison Research – joined Zak Mir on Tip TV to discuss Glencore’s market troubles, and if they’re likely to go private, as well as whether or not there is still value in mining stocks.
What’s the best decision for Glencore?
With rumours that mining giant Glencore (LONDON:GLEN) might leave the stock market triggering a rally in share price, Zak Mir questioned whether taking a step out of the limelight may benefit the company. Gibson believes that if they do decide to exit, they are unlikely to return as the markets have been less than a happy experience.
Undervalued and undersold.
Glencore have also begun to sell off assets, the most recent being a Brazilian nickel project which was sold to Horizonte. Gibson believes that, in a market that is already undervalued, Glencore have taken a huge discount to the price, and may have sold as low as 1/10th of its actual value.