Glencore to pay $1 billion dividend in 2017

Miner bounces back from a year ago when hit hard by a commodity price crash

Glencore has been one of the biggest gainers as the markets have recovered this year.

Glencore has been one of the biggest gainers as the markets have recovered this year.

 

Commodities trader and miner Glencore said on Thursday it would pay $1 billion in dividends in 2017 and more the following year while keeping its investment grade credit rating, which remains its top priority.

Glencore a year ago was one of the miners hardest hit by a commodity price crash and has been one of the biggest gainers as the markets have recovered this year.

A year on, it has exceeded its disposal target with asset sales of $6.3 billion and is on track to cut debt to $16.5 billion to $17.5 billion, it said.

It also gave detail on earlier promises to reinstate a dividend in 2017, saying it would pay out $1 billion next year.

From 2018, it would introduce a new distribution policy, including a fixed dividend of $1 billion funded from marketing cash flow.

A variable distribution equal to at least 25 per cent of free cash flow from the mining, or industrial, sector could add roughly another $1 billion, depending on performance and commodity prices.

– Reuters