{"id":1175073,"date":"2020-03-31T08:05:07","date_gmt":"2020-03-31T14:05:07","guid":{"rendered":"https:\/\/www.mining.com\/?p=1018755"},"modified":"2020-03-31T08:05:07","modified_gmt":"2020-03-31T14:05:07","slug":"glencore-postpones-dividend-payment-decision-due-to-covid-19-related-risks","status":"publish","type":"post","link":"https:\/\/juniorminingnews.com\/?p=1175073","title":{"rendered":"Glencore postpones dividend payment decision due to covid-19 related risks"},"content":{"rendered":"<p>Miner and commodities trader&nbsp;Glencore&nbsp;(LON: GLEN) has <a href=\"https:\/\/www.glencore.com\/media-and-insights\/news\/2020-Distribution-and-Revolving-Credit-Facilities\"  rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">deferred making a decision<\/a> on whether to go ahead with the proposed 2020 cash distribution as risks associated to a global recession and massive demand shock looms.<\/p>\n<div class='d-flex justify-content-center d-xs-block d-sm-block d-md-none'>\n<div id='div-gpt-ad-1561499308230-0'><script>googletag.cmd.push(function() {googletag.display('div-gpt-ad-1561499308230-0');});<\/script><\/div>\n<\/div>\n<p>The Swiss-based company had announced plans to reward<br \/>\ninvestors with $2.6 billion in cash distribution this year, or $0.20 per share.<br \/>\nInstead, it said it was taking \u201cprudent\u201d action to protect and strengthen its<br \/>\ncapital structure amid the current period of heightened uncertainty.<\/p>\n<p>Glencore warned that, while there were currently no risks of<br \/>\nmaterial production disruption owing to the coronavirus pandemic,&nbsp;the<br \/>\nsituation could rapidly change due to uncertainties.<\/p>\n<p>The firm also extended its current credit facilities to<br \/>\nprotect its capital structure and generate free cash flow.<\/p>\n<p>Today\u2019s announcement makes of Glencore the first major<br \/>\ndiversified miner to take such a step in respect of capital returns.&nbsp;Others<br \/>\nsuch as BHP, Rio Tinto and Anglo American, have not commented on changes to<br \/>\ndividends or disruption to other kinds of capital return. <\/p>\n<p>A decision on resuming the payout would be made later in the<br \/>\nyear, Glencore said.<\/p>\n<p>The news come at a difficult time for the company. It reported<br \/>\nin February its first annual net loss since 2015, as it had to take a $2.8<br \/>\nbillion impairment charge to reflect the closure of its&nbsp;<a href=\"https:\/\/www.mining.com\/glencore-warns-of-350m-hit-on-copper-unit-poor-results-cobalt-prices-rout\/\"  rel=\"noreferrer noopener\">African copper business<\/a>.&nbsp;<\/p>\n<p>It also follows an <a href=\"https:\/\/www.mining.com\/glencore-finds-facts-believed-relevant-to-corruption-probes\/\"  rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">audit overview of the firm\u2019s 2019 annual report<\/a> in with examiners found potentially \u201crelevant facts\u201d that may help authorities progress on the multiple, but separate&nbsp;alleged&nbsp;<a rel=\"noreferrer noopener\" href=\"https:\/\/www.mining.com\/glencore-cftc-investigation-possible-violations\/\" >corruption<\/a>&nbsp;and&nbsp;<a rel=\"noreferrer noopener\" href=\"https:\/\/www.mining.com\/glencore-shares-hammered-as-us-requests-documents-in-corruption-probe\/\" >bribery investigations<\/a>&nbsp;targeting the Swiss company.&nbsp;<\/p>\n<p>Last week, it halted a number of smaller mines due to<br \/>\ngovernment restrictions to curb the spread of the coronavirus<\/p>\n<p>While today\u2019s announcement will be painful for investors, analysts<br \/>\nbelieve it reflects a situation that is not nearly as bad as 2015, when top<br \/>\nminers, particularly Glencore and Anglo American, were frantically trying to<br \/>\npay down debt and their share prices nosedived. <\/p>\n","protected":false},"excerpt":{"rendered":"<p>The miner and commodities trader is focusing on protecting and strengthening its capital structure during the current period of heightened uncertainty.<\/p>\n","protected":false},"author":8,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center 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