[miningmx.com] – GLENCORE may sell its entire agricultural business (ags), raising up to $12bn, but it would be reticent to sell its best mines, especially in the current market, said Reuters citing UBS analyst, Myles Allsop.
“If there’s an interesting bid on the table, Glencore may consider selling all of the agriculture assets,” said Allsop. “These guys are very pragmatic – if they can raise $10-$12bn from the sale of ags and address all the balance sheet concerns, they would seriously consider it.”
Earlier this week, Glencore said it would sell a nickel project in Brazil for $8m, but sales of industrial assets were unlikely to be extended to major mines, even though it has to make in-roads to some $30bn in net debt – a factor behind the 30% fall in its share price on September 28.
“I don’t think they want to sell tier 1 mining assets in this sort of environment … Selling copper assets at a decent price at this point in the cycle is tougher,” Allsop told Reuters.
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