Glencore targets ASX listing in October as earnings jump 86%

Glencore plans a secondary listing on the Australian Securities Exchange by October, seeking access to A$4.4 trillion in pension assets, after first-half earnings jumped 86% to $10.1 billion.

"An Australian listing is expected to strengthen our profile in one of our most important operating jurisdictions, broaden our shareholder base, improve trading liquidity and enhance corporate financial flexibility," Gary Nagle, chief executive officer at Glencore, said.

The Swiss-headquartered miner reported adjusted EBITDA of $10.1 billion for the first half, up from $5.4 billion a year earlier, as marketing adjusted EBIT surged 142% to $3.3 billion. Net income attributable to equity holders swung to $4.4 billion from a $655 million loss in the prior-year period, while revenue rose 49% to $174.4 billion. Funds from operations reached $8.1 billion, up 158%.

The listing comes a year after Glencore abandoned a switch to New York and would give Australian investors access to diversified copper exposure at a time when local mining options have narrowed after industry consolidation. The company also announced a special cash distribution of 8.5 cents per share and a $500 million buyback, lifting total 2026 shareholder returns to about $3.5 billion.

The ASX listing, to be executed via CHESS Depositary Interests, targets admission in October. Australia's pension pool of A$4.4 trillion is expected to grow to approximately A$12.4 trillion by 2045, according to the company. AustralianSuper, the country's largest pension fund, said a Glencore listing on the ASX would be positive given the exchange's strong visibility for mining stocks.

Glencore's industrial segment contributed adjusted EBITDA of $6.5 billion, up 72%, reflecting higher commodity prices across copper and coal. Mining margins were 52% for copper, 38% for steelmaking coal and 19% for energy coal. Net debt declined $1 billion to $10.2 billion, bringing the leverage ratio to 0.56 times adjusted EBITDA from 0.83 times. Available committed liquidity stood at $14 billion.

The company maintained its copper growth trajectory, targeting about 1 million tonnes annualized by the end of 2028 and 1.6 million tonnes by 2035. The Alumbrera restart in Argentina is running ahead of schedule, with first production now expected in the second half of 2027 versus original guidance of the first half of 2028. Capital expenditure on property, plant and equipment reached $4 billion in the first half, up from $3.2 billion a year earlier, with a substantial portion directed to copper portfolio investments.

Glencore shares rose 2.15% on the London Stock Exchange following the announcement. The company projects full-year 2026 illustrative adjusted EBITDA of about $19.7 billion based on current commodity prices and expected higher second-half volumes, particularly for steelmaking coal. The first-half performance was characterized by significant repricing of energy markets following the escalation of the Middle East conflict, which shifted the focus toward security of supply and access to physical commodities. Constraints across oil, refined products, LNG and freight capacity drove heightened volatility across global energy and other markets.

The move to Australia follows Glencore's decision last year to abandon a potential New York listing, which had been under consideration as part of a broader strategic review. A secondary listing on the ASX would not change the company's primary London listing but would provide a second trading venue for its shares, potentially improving price discovery and trading volumes. The company's existing Johannesburg listing remains unchanged.

For Australian investors, the listing offers a way to gain exposure to copper and other base metals at a time when the local listed mining sector has contracted through mergers and acquisitions. BHP and Rio Tinto remain the dominant ASX-listed diversified miners, with Glencore's addition potentially reshaping the composition of the benchmark S&P/ASX 200 index within 12 months, Nagle said. The company's copper production target of 1.6 million tonnes by 2035 would position it among the largest copper producers globally, competing with Codelco and Freeport-McMoRan.

This article is for informational purposes only and does not constitute investment advice.