Glasenberg Loses $500 Million in One Day on Glencore Share Drop

  • Fortune has fallen $3.5 billion in 2015 as commodities tumble
  • Five other executive stakes have fallen below $1 billion

Glencore Plc Chief Executive Officer Ivan Glasenberg lost $500 million today as the mining group tumbled to a new low after analysts questioned the company’s prospects in the face of persistently low commodities prices.

Glasenberg’s fortune fell to $1.4 billion from $1.9 billion at the close of trading Friday, according to the Bloomberg Billionaires Index. He’s lost 74 percent of his net worth this year and 81 percent since July 2014, when he was the 190th-richest person in the world with $7.3 billion.

In recent weeks, the South Africa-born billionaire has announced a debt-reduction plan, bought company shares and scrapped a series of dividends in an effort to shore up its balance sheet.

An Investec analyst report on Monday stated that Glencore “may have to undertake further restructuring” sending the mining giant and commodities trader down almost 30 percent for the day. Goldman Sachs Group Inc. said last week that should commodity prices fall another 5 percent, the metrics needed to maintain Glencore’s credit rating would be out of the required range.

Ivan Glasenberg
Ivan Glasenberg
Photographer: Andrey Rudakov/Bloomberg

When Glencore went public in May 2011, Glasenberg was one of five executives to hold stakes valued at more than $1 billion. He’s the only one of them whose holding has a ten-figure value. Two of the other executives, Daniel Mate and Telis Mistakidis, each have about a 3 percent stake and together lost almost $400 million on Monday’s nosedive.

Peter Grauer, the chairman of Bloomberg LP, the parent of Bloomberg News, is a senior independent non-executive director at Glencore.

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