The profits of mining group Glencore grows, but shares fall amid anti-money laundering probe

  • The profits of mining group Glencore grows, but shares fall amid anti-money laundering probe
    Independent.t. E.
    Glencore published net profit growth for the half year, but remained tight-lipped on an ongoing money laundering investigation by the U.S. Department of justice.
    https://www.independent.ie/business/world/mining-group-glencores-profits-rise-but-shares-fall-amid-antimoney-laundering-probe-37195419.html
    https://www.independent.ie/world-news/article37195416.ece/58e7a/AUTOCROP/h342/ipanews_a16b8848-8a0a-4aac-8e4a-64333bd3c447_1

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Glencore published net profit growth for the half year, but remained tight-lipped on an ongoing money laundering investigation by the U.S. Department of justice.

The mining giant said its adjusted earnings before interest, taxes, depreciation and amortization rose 23pc to $8.3 billion in the first half, compared with $6.7 billion in the same period last year.

However, this was less than the 8.5 billion analysts had expected.

Glencore, which is currently involved in anti-money-laundering probe by the U.S. Department of justice (DOJ), said that market conditions will “remain unstable”.

Liberum analyst Ben Davis said it was due to the timing of shipments of copper, which is deposited sales for the second half.

  • Read more: Glencore shares tank after mining giant struck with the United States agenda in money laundering probe

Mr. Davis said, “there was no increase announced stock repurchase program by $1 billion, which we thought was possible given the continuing weakness in the action or any news about the DOJ investigation.

“The products weighed in the second half, but we expect continued weakness in earnings momentum, as demand in China slows down with the real estate sector.”

Glencore shares fell 7.1 or 2.1 PC 319.2 p In early trading on Wednesday.

Glencore shares fell after the mining giant said that he was slapped with a subpoena in the US, with the DOJ demanding documents relating to the company’s activities in Nigeria, the Democratic Republic of the Congo and Venezuela for the last 11 years.

The company has previously said it will cooperate with the DOJ.

Glencore CEO Ivan Glasenberg, said, “while broader market conditions are likely to remain volatile, confidence in business prospects and the current share trading levels indicate the priority of de-leveraging and shareholder returns/repayment funded by generating money.

“We remain focused on creating shareholder value through disciplined long-term allocation of capital.”

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