Glencore Widens Debt-Cutting Plan, What's Next?

The transcript discusses Glencore's efforts to reduce its debt by $500 million, aiming for a net debt of 16.5 billion by the end of 2016. The management's commitment to improving the credit profile and reducing leverage is highlighted. Despite past doubts about Glencore's viability, the company has made significant progress in crisis management, although it remains sensitive to commodity prices. The discussion also compares Glencore's strategy with its peers, emphasizing its focus on the trading business. The investment potential in Glencore's bonds is considered attractive, while the equity story depends on rising commodity prices.

What is Glencore's target for net leverage by the end of the year?

• 2.5 times

• 3.0 times

• 2.0 times

• 1.5 times

What was a significant challenge Glencore faced last year?

• High commodity prices

• Lack of market presence

• Doubts about its viability

• Excessive cash reserves

How has Glencore's management responded to the financial challenges?

• By increasing leverage

• By cutting down on trading activities

• By reducing net debt

• By expanding into new markets

What is a key feature of Glencore's business model?

• A hybrid model combining mining and trading

• A focus on technology and innovation

• Focus solely on trading

• Focus solely on mining

What factor is crucial for the attractiveness of Glencore's bonds?

• Rising commodity prices

• Stable commodity prices

• Decreasing commodity prices

• Volatile commodity prices