The Northern Miner Podcast Glencore reaches inflection point, ft Bloomberg Intelligence’s Alon Olsha
Nov 18, 2025
Alon Olsha, a Senior Industry Analyst for Metals & Mining at Bloomberg Intelligence, shares insights on Glencore's evolving strategy. He discusses growing shareholder pressure due to Glencore's declining copper output and the complexities of its controversial trading division. Argentina emerges as a critical growth area, though challenges abound. Alon also dives into the hurdles of a potential Teck Resources bid, including cultural clashes and coal divestment issues, and the pressures faced by Glencore's smelting operations in a competitive market.
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Trading DNA Shapes Glencore's Strategy
- Glencore uniquely blends a global trading house with large mining assets, making its mindset and capital allocation different from peers.
- Its trading arm remains a consistent cash generator while shaping the group's strategic behavior.
Opaque Trading Makes Valuation Tricky
- Valuing Glencore is harder because its opaque trading business and debt structure add uncertainty to earnings forecasts.
- The mining side is easier to model thanks to consistent disclosure, but trading volatility complicates valuation.
Coal Portfolio Weighs On Market Perception
- Glencore's coal-heavy portfolio depressed its valuation in ESG-focused markets despite strong past cash returns.
- Management considered a US listing but opted to stay in London amid uncertainty over index inclusion and frictions.