It is probably all over the news, but here is the number:
- Glencore International Plc (LON:GLEN) mines about half of all zinc and cobber plus is a major player in grain.
- Xstrata PLC (LON:XTA) is one of the largest coal miners.
- If the merger goes through the new company will have a value of 70 bio. EUR
So much for the blurb “financial analysts” enriches news with.
Marathon Partners Equity Management, the equity long/short hedge fund founded in 1997, added 8.03% in the second quarter of 2021. Q2 2021 hedge fund letters, conferences and more According to a copy of the hedge fund's second-quarter investor update, which ValueWalk has been able to review, the firm returned 3.24% net in April, 0.12% in Read More
Let’s see the commodity prices:
Shall I draw You a picture? Ok!
Let’s do some wild guesses:
1) Commodity prices – especially metals – are dropping presumably due to falling Chinese activity. Maybe, just maybe, the costumers aren’t that willing to accept delivery and prices.
2) You can call mining a lot of things, but NOT cheap: “Oh, My Darling Clementine!” So there might not be that much profit in employing expensive machinery and greedy workers in remote places.
Mines very rapidly become unprofitable when prices drop – especially where scrap is an alternative source.
3) As they are located in Switzerland their bank just might be calling home their loans?
4) Maybe their stock is just so much rubble?
But that is just me. But You are right! It is not my money!