Glencore Records $395 Million Loss From Hedging Coal Output
- Swiss trader locked in prices for 55 million tons of coal
- CFO says hedge was a ‘corporate-risk management’ decision
Glencore’s Debt, Dividend and View From China
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Glencore Plc, the world’s biggest coal exporter, recorded a $395 million loss by hedging future production of the fuel before prices rallied.
The miner and trader locked in prices for about 55 million metric tons during the second quarter, when benchmark prices surged 11 percent, said Chief Financial Officer Steve Kalmin. On a call with analysts Wednesday, he responded to repeated questioning by defending the trade as “sensible” and a “corporate risk-management” decision.