Why is the Glencore share price falling?

The Glencore share price (JSE: GLN) has lost over ZAC 1,000 this year to date so far, more than fourteen percent of its share price, in less than two months. 

In fact, Glencore is actually down close to seventeen percent in the past year. But why? 

What is Glencore? 

Glencore is a Swiss mining company with operations in South Africa and multiple other mineral-rich countries. 

The company both mines and markets several metals and minerals such as copper, coal, gold, cobalt, zinc, nickel and ferroalloy, as well as marketing aluminium and iron ore from other third parties.

Why is Glencore trending? 

The reason for the increased interest in Glencore is that the company releases its financial results for the full 2023 year tomorrow on February 21st. 

Amidst a falling gold price and other metals similarly underperforming, investors will be watching the figures closely to see if Glencore can turn things around for a more profitable 2024 financial year. 

What’s going on with the Glencore share price?

The reason that Glencore’s stock value is declining can largely be attributed to its ongoing issues with the price of nickel. 

In recent months nickel and gold, both of  which are typically major sources of revenue for Glencore, have plummeted in price. 

Eventually, this led to Glencore recently closing its unprofitable nickel mine, Koniambo in the south Pacific, which was announced on February 12th and will result in the company, selling its 49 percent stake in the white elephant. 

Glencore share price forecast 

Unfortunately, there seems to be no positive Glencore share price forecast in the near future. Unless the earnings surprise with far better-than-expected revenues, profits and margins, the stock price looks likely to slump upon publication of the 2023 results tomorrow. 

Furthermore, the price of many metals and minerals which Glencore specialises in are trading at far lower levels now and in the 2023 year than they were in 2020 (when gold reached an all-time high) and 2021.  

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