Glencore’s (LON:GLEN) chief executive Ivan Glasenberg has resigned from his position as a director of Russian aluminium producer Rusal, the blue-chip miner has said. The move came after the latest round of US sanctions which yesterday pressured shares in the London-listed group.
Glencore’s share price has recovered in today’s trading, having jumped 2.55 percent to 347.80p as of 08:16 BST. The stock is outperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.45 percent higher at 7,227.00 points. The miner’s shares have added just under 10 percent to their value over the past year, as compared with about a 1.7-percent dip in the Footsie.
Ivan Glasenberg steps down from Rusal
Glencore announced in a statement this morning that its chief executive Ivan Glasenberg had resigned from his position as a director of Rusal, following the company’s designation as Specially Designated Nationals (SDNs) by the US government. The London-listed miner, which has various contracts with Rusal for the purchase of aluminium and alumina, noted that it “was committed to complying with all applicable sanctions in its business”.
The FTSE 100 group noted that it was still evaluating the position under its contracts with Rusal, while assuring investors that the contracts were not ‘financially material’.
Glencore further noted that it had previously signed a non-binding term sheet with EN+ regarding swapping its shares in Rusal for Global Depositary Receipts in EN+, and that it would not proceed with the transaction due to the designation of both companies as SDNs.
Analysts on blue-chip miner
Liberum Capital reiterated its ‘sell’ rating on Glencore yesterday, valuing the shares at 300p. According to MarketBeat, the blue-chip miner currently has a consensus ‘buy’ rating and an average price target of 424.39p.