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Glencore is reviewing whether to ditch its London listing, paving the way for a potential move to New York and threatening the UK market’s historic status as a magnet for the global mining industry.
Chief executive Gary Nagle said the mining group, one of the 20 most valuable members of the blue-chip FTSE 100 index, was assessing whether other exchanges would be “better suited to trade our securities”.
“We want to ensure that our securities are traded on the right exchange, where we can get the right valuation,” he said on Wednesday after the company disclosed a review of its listing alongside its annual results. “If there’s a better one, and those include the likes of the New York Stock Exchange, we have to consider that.”
The departure of Glencore, whose initial public offering in 2011 was then London’s biggest listing, would be a severe blow and further loosen the market’s grip on a sector that has long been central to its identity.
Miner BHP switched to a secondary London listing in 2022, while rival Rio Tinto has launched a review of its options after facing calls from an activist shareholder to move its primary listing from London to Sydney.
Glencore declined to comment on a preferred venue should it leave London, but in 2023 the group considered splitting off its coal business and listing the unit in New York before shelving the plan last year.
Historically, New York has not been a draw for large diversified mining companies, with copper producer Freeport-McMoRan and gold miner Newmont among the only large groups listed on Wall Street.
But a greater willingness by US investors to back fossil fuel producers has burnished its credentials as a potential venue. Its appeal has also been sharpened by US President Donald Trump’s administration pledging to cut red tape for businesses.
George Cheveley, a fund manager focused on mining at UK asset manager Ninety One, said: “With Trump in charge, the US is clearly a more friendly market towards fossil fuels.”
But he added: “There’s deeper, wider problems at Glencore, which a listing in the US doesn’t necessarily solve,” pointing to questions over whether it would be better for the group to spin off its coal business, which has been trading on a low multiple.
The London Stock Exchange has been hit by a string of high-profile departures in recent years, including gambling group Flutter, which owns Paddy Power, and building materials company CRH.
Last year, 88 companies delisted or transferred their primary listing from London’s main market with only 18 taking their place, according to the London Stock Exchange Group.
Shares in Glencore, which are now lower than when the group listed, fell 7 per cent on Wednesday, as its annual profits were hit by the slump in thermal coal prices to their lowest level since 2021.
A drop in coal prices wiped $3bn off its earnings in 2024, Glencore said, adding that it was reviewing possible production cuts. Its adjusted earnings before interest, tax, depreciation and amortisation fell 16 per cent last year to $14.4bn compared with 2023.
It reported a $1.6bn loss for 2024, compared with net income of $4.3bn the previous year. Glencore also announced dividend payments of $1.2bn, slightly below analysts’ expectations, along with a $1bn share buyback.
