[miningmx.com] – MORE weakness in the copper price might stunt the ability of Glencore to mount a fightback after its shares fell to record lows this year, said Reuters citing the view of analysts.
“Copper is one of the biggest earners drivers for the group so this weakness we are seeing in the copper prices certainly does create headwinds for the company as it seek to cut its debt,” Macquarie analyst Alon Olsha told Reuters.
“But the scope for the company to beat its debt reduction target is very high and that should offset some of the weakness we are seeing on the copper price,” he said.
Glencore’s shares – down 70% so far this year – have recovered from record lows but the company is still the biggest loser on blue-chip FTSE 100 index in the year to date, said Reuters.
London Metal Exchange benchmark copper plunged to $4,590 a tonne on Tuesday, its lowest in more than six years, the newswire said.
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