Mining giant Glencore bets the rise of electric cars will boost appetite for its metal. The company first half earnings jumped but as Silvia Antonioli reports, investors were hoping for more.
The cars of the future might be a gold mine for Glencore In an ironic twist of fate one of the world's largest coal producers says it will hit the jackpot with the rise of green vehicles South African tycoon Ivan Glasenberg - the company's boss- says the large scale roll-out of electric vehicles will make its cobalt, nickel and copper hot stuff again. SOUNDBITE (English) JAMES BEVAN, CHIEF INVESTMENT OFFICER, CCLA, SAYING: "The trend to electric vehicles as has been highlighted by the company is highly significant in terms of the demand for the metals associated with the production of batteries and that is certainly something that both the company has found important but also has highlighted to investors the real underlying value of the company may represent." Glencore's half year earnings rose by 68% to 6-point-7-billion-dollars and the company lifted its full year earnings guidance. Yet the stock was trading lower as investors would have hoped for even more. SOUNDBITE (English) JAMES BEVAN, CHIEF INVESTMENT OFFICER, CCLA, SAYING: "This is the reality that travelling is sometimes better than arriving." Glencore might be losing a few dollars today but this comes after an impressive turnaround Its share price has bounced almost 4 folds since hitting historic lows in 2015 following a metal price meltdown. SOUNDBITE (English) JAMES BEVAN, CHIEF INVESTMENT OFFICER, CCLA, SAYING: "Glencore share price has risen substantially reflecting the fact that many investors were worried deeply about its long term future. Now it appears that the company is out of the woods, it is able to pay and maintain dividend and that in itself speaks volumes. There's probability that the company wants to make further acquisitions." While other mining companies are keeping their cash tight Glencore is known to enjoy a deal. And given the increased fire-power, when it comes to the next gamble, the question is when, rather than if.