This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.

You can find the current article at its original source at http://www.bbc.co.uk/news/business-37172413

The article has changed 2 times. There is an RSS feed of changes available.

Version 0 Version 1
Glencore steps up debt reduction plan Glencore steps up debt reduction plan
(about 4 hours later)
Mining company Glencore has set a new target to cut net debt to between $16.5bn and $17.5bn (£12.5bn-£13.5bn) this year. Mining company Glencore has set a new target to cut net debt as it tries to rebuild its financial position.
In March, the aim was to cut debt to between $17bn and $18bn. The aim to cut debt has now been set to between $16.5bn and $17.5bn (£12.5bn-£13.5bn) by the end of this year.
The attempt to further improve the company's balance sheet comes as it reported a 66% drop in first-half profit to $300m.The attempt to further improve the company's balance sheet comes as it reported a 66% drop in first-half profit to $300m.
Glencore's half-year results showed it had been affected by turbulent commodity prices.Glencore's half-year results showed it had been affected by turbulent commodity prices.
Despite the fall in profits, the company said asset sales left it on track to cut debt. In March the aim was to cut debt to between $17bn and $18bn. Despite the fall in profits, the company said asset sales left it on track to cut debt.
"We have already largely achieved our asset disposals target of $4bn to $5bn with a diverse and material pool of asset sales' processes also ongoing," said chief executive Ivan Glasenberg."We have already largely achieved our asset disposals target of $4bn to $5bn with a diverse and material pool of asset sales' processes also ongoing," said chief executive Ivan Glasenberg.
On Wednesday, the company also announced the planned sale of all future output of gold and a 30% stake in its Ernest Henry copper mine in Australia to Evolution Mining for A$880m ($670m) to help pay down debt.On Wednesday, the company also announced the planned sale of all future output of gold and a 30% stake in its Ernest Henry copper mine in Australia to Evolution Mining for A$880m ($670m) to help pay down debt.
Edward Sterck, metals and mining research analyst at BMO Capital Markets, said: "The underlying results are broadly in line with our forecast, the further asset sales are a positive here."Edward Sterck, metals and mining research analyst at BMO Capital Markets, said: "The underlying results are broadly in line with our forecast, the further asset sales are a positive here."
Difficult time
Glencore, along with the rest of the mining industry, has had a tough few years.
In September last year, Glencore's shares dived after a note from analysts at Investec said its equity value could be "eliminated", although Glencore responded that it was "operationally and financially robust".
When Glencore listed on the London market in 2011, it priced its shares at 530p. However, since then, its share price has struggled.
Following the Investec note and plummeting commodity prices, the company put a recovery plan in place. It scrapped paying shareholders a dividend, began selling assets and slashed spending.
Investors will be hoping for the reinstatement of the regular dividend payment after chief financial officer Steve Kalmin said it was "likely" the company would return to a full-year dividend. Glencore paid an interim dividend of six cents a share last August.