CYM (ASX) Ann: AUD50M Secured Offtake Prepayment Facility for Nifty Copper

Glencore headquarters resides in Baar, Switzerland and trades on the LSE in London. Market Cap of $63.176B
Note: Glencore SP has not varied much since the copper sell off in June, Trading about 10% off it’s recent high in June.

Description
Glencore plc produces, refines, processes, stores, transports, and markets metals and minerals, and energy products in the Americas, Europe, Asia, Africa, and Oceania. It operates through two segments, Marketing Activities and Industrial Activities. The company produces and markets copper, cobalt, nickel, zinc, lead, chrome ore, ferrochrome, vanadium, alumina, aluminum, tin, and iron ore. It also engages in the oil exploration/production, distribution, storage, and bunkering activities; and offers coal, crude oil and oil products, refined products, and natural gas. In addition, the company markets and distributes physical commodities sourced from third party producers and its production to industrial consumers in the battery, electronic, construction, automotive, steel, energy, and oil industries. Further, it provides financing, logistics, and other services to producers and consumers of commodities. The company was formerly known as Glencore Xstrata plc and changed its name to Glencore plc in May 2014. Glencore plc was founded in 1974 and is headquartered in Baar, Switzerland. Here is a great document about ESG from S&P

https://www.spglobal.com/_assets/documents/ratings/esg-evaluations/ratingsdirect_esgindustryreportcardmetalsandmining_41672607_jun-05-2019.pdf

ESG compliance is critical for businesses moving towards 2035 and beyond. This Report Card (above link) from 2019 is relevant today.

Glencore has exposure to ESG issues as expressed on page 6
Company/Issuer Credit Rating/Comments
Glencore PLC (BBB+/Stable/A-2)

“Glencore has operations in some jurisdictions with non-counterparties to the Organisation for Economic Co-operation and Development (OECD), as well as material exposure to thermal coal. These factors make the company more exposed to ESG risks compared to peers. And the company is the subject of an ongoing U.S. Dept. of Justice investigation in relation to its operation in the DRC. Glencore has sought to address environmental criticisms by publishing extensive sustainability materials and by committing to cap its coal production at current levels. Social issues in relation to local communities and miners, when they occur, appear to be addressed directly and in line with industry practices. Fatalities at mines occur a little more often than industry averages, and Glencore attributes these in part to its standards and values not yet being fully assimilated at all assets. Given that natural resources are also national resources, we note that governments can seek to renegotiate or change tax and royalty agreements, particularly at times of rising prices. Glencore, in common with peers, tends to adopt a pragmatic position in these situations, as in DRC most recently. Governance, in terms of disclosures and board and management processes, is on par with other large miners and international companies. When issues have arisen, they have usually been at acquired assets, as for example at Katanga in relation to accurate reporting of copper production. We see the remaining significant equity interests held by management and traders as a positive factor, specifically in terms of risk management and alignment of incentives between the company and its owners.”

Take a look at Glencore's projected Zero emission targets. 50% reduction by 2035 and Zero by 2050. How will Glencore achieve that? Is that even possible?

https://www.glencore.com
https://www.glencore.com/.rest/api/v1/documents/12b9c4417f45c969007f6e09ebf2ca67/2021-Climate-Change-Report-%20(2).pdf
Environmental Social Risk is much higher for mining & metals operations, especially in underground mining operations in 3rd world countries.

Glencore is based in environmentally conscious Switzerland. Glencore is trying to cleanse itself and appears mining is a dirty word for them nowadays. Metals production and smelting becoming much cleaner in an Electric Arc furnace than in conventional coal. (As per P2 in the ESG Report Card)

As @Deme pointed out in posts (Post #: 62934217 & Post #: 62926132)
https://www.glencore.com/media-and-insights/news/metals-acquisition-corp-to-acquire-csa-mine-from-glencore-plc

CSA Mine sale with MAC came with 1.5% smelter royalty along with 100% offtake for the copper concentrate.
Smart move by Glencore, removing their mining ESG obligations while maintaining their copper output. This leads me to think Glencore will not be trying to buy out mines directly, but rather, obtain 100% offtake with smelter royalties filling their $$ requirements. Keeping GLEN.L's ESG requirements clean heading towards zero emissions by 2050.

100% offtake may well be the case for CYM and I’m sure Barry and Wayne understand Glencores ESG ambitions.