, Columnist
Glencore Makes a $36 Billion Bet on Dirty Coal
CEO thinks shareholders are missing the picture on Glencore’s strong cash flow. If you’re happy with investing in coal, he may have a point.
Coal may be killing the planet, but it's still a license to print money for some.
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Higher U.S. bond yields have made the payouts offered by most stocks look pretty underwhelming lately. Not so Glencore Plc, whose implied yield is startlingly high even though it’s throwing off cash like it’s going out of fashion.
The miner-cum-trader thinks it can generate $7.5 billion of free cash flow next year at current commodity prices. Absent a downturn in the economy, it’s conceivable that the company will return all of that to shareholders via dividends and buybacks, it said on Monday. Here’s the relevant slide: