Ann: Narrabri Stage 3 Legal Proceedings, page-13

1. A very small 0.34% increase today in NEWC 6000 kcal- to US $146, which is up 1.32% for the week, & a very good 9.16% for the month.
Dutch TTF EU benchmark natural gas increse yesterday to 40.05 euros- which is a very good 30.01 % increase for the month.

Commodities - Live Quote Price Trading Data (tradingeconomics.com)





2. Glencore decided in March 2023 to demerge its vast coal holdings, mainly on ESG grounds. On 8.8.24, however, it has reneged, as it has now agreed with the vast majority of its shareholders that this would not be prudent, as coal is making such massive profits for the company.

This very positive investment outlook, by such a, usually, very canny large mining company for coal also bodes well for further increases, eventually, in WHC's SP: cash cow! In Europe, are ESG pressures easing? The European public want, & recognise, cheap, reliable, baseload power= coal?

AFR P. Ker 8.8.24 said

"Glencore has abandoned a plan to spin off its sprawling coal mining operations and says shareholders’ views on the matter have “evolved” over the past year, with a clear majority in favour of keeping the company’s most lucrative division.

Glencore directors have surveyed investor attitudes towards coal since finalising the acquisition of Teck Resources’ coal division on July 11. Glencore chairman Kalidas Madhavpeddi said investor views were “very” clearly in favour of retention.

“The board believes retention offers the lowest-risk pathway to create value for Glencore shareholders today,” he said...

It also shapes as a LANDMARK (my emphasis) moment for investors’ attitudes towards environment, social and governance issues, which had originally driven Glencore to consider separating its coal assets from those that produce metals such as copper and cobalt...

“Over 95 per cent of shareholders that specifically expressed a preference for retention or demerger [do so] primarily on the basis that retention should enhance Glencore’s cash-generating capacity to fund opportunities in our transition metals portfolio, such as our copper growth project pipeline, as well as accelerate and optimise the return of excess cash flows to shareholders,” the company said in a statement...

Bid to realise ESG premium

...[Glencore CEO George] Mr Nagle suggested that Teck and Glencore should merge then immediately spin off their combined coal assets to form a pure coal company listed on the New York Stock Exchange.

His rationale for the “merger demerger” was that it would allow the metals side of Glencore and Teck to “fully realise the ESG premium from being unburdened by continued exposure to coal”.

The full takeover of Teck did not go ahead, but Mr Naglereturned in Novemberlast year with a $US6.93 billion plan to acquire Teck’s coal mines. The coal acquisition was completed on July 11 and Mr Nagle has since been surveying investors...

The Australian Financial Reviewreported last week that big shareholders wanted to retain the division.

“Glencore started to receive feedback that shareholder preferences may have evolved (Interesting!- my emphasis, word in brackets) and that many shareholders were no longer supportive of a demerger, in many cases due to evolving views (Interesting again- my words) on ESG [and] increased support for Glencore’s climate strategy of a responsible decline of its thermal coal business,” the company said"...

Tribeca Investment Partners portfolio manager Ben Cleary had campaigned for Glencore to retain coal earlier this year and was pleased with Wednesday’s announcement.

“It’s great to see Glencore keeping the coal business and not spinning it off. I’m very supportive of management comments that there would not have been a valuation uplift from a spin-off,” he said. “The earnings stream remains a great diversifier for the metals and trading business.”...

While Glencore has abandoned attempts to secure a re-rating along ESG lines, Mr Cleary said the company would achieve a higher valuation if its shares were listed in Australia (Interesting again- my words) rather than London".

GLEN PLC: Glencore keeps coal amid ‘evolving’ ESG mood (copyright link)

(To open link fully, google "AFR Ker Glencore keeps coal...")

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