"As we look forward, increasingly favourable fundamentals provide the potential to create significant long-term value for Glencore shareholders via our leading portfolio of well capitalised tier one assets and resilient marketing business, combined with significant low-cost copper and zinc growth options and disciplined approach to supply."

Strong 2016 financial performance in challenging market conditions

    Adjusted EBITDA of US$10.3 billion, up 18%; Adjusted EBIT of US$3.9 billion, up 81%. Net income pre-significant items of US$2 billion, up 48%. Funds from operations of US$7.8 billion, up 17%. Capital expenditure of US$3.5 billion, down 41%.

Underpinned by outstanding cost performance

  • Full year operational unit cost performance in our key commodities: copper 87c/lb, zinc -5c/lb (16c/lb ex gold), nickel 265c/lb and thermal coal
  • US$39/t at a US$18/t margin.
  • Significant reductions in copper and zinc cost structure expected to be sustained into 2017.
  • Marketing Adjusted EBIT of US$2.8 billion, up 14%, supported by improved demand conditions.
  • Strong 2H16 contribution from all 3 segments.

Capital structure repositioned

  • Net funding reduced by US$14.7 billion over the past eighteen months to US$32.6 billion.
  • Cash flow coverage ratios improved to strong investment grade levels
  • FFO to Net debt: 50%.
  • Net debt to Adjusted EBITDA: 1.5x.
  • Available committed liquidity of US$16.7 billion.
  • Achievement and maintenance of strong Baa/BBB credit ratings remains a top priority.
  • Optimised capital structure ensures less risk, more flexibility and stability of distributions.

Positioned for the challenges and opportunities that lie ahead

  • Uniquely diversified by commodity and geography.
  • Major low-cost supply positions in copper, zinc, nickel, coal, cobalt and ferroalloys.
  • Favourable fundamentals for our key commodities - already in deficit or transitioning to deficit.
  • Modest total capex guidance of CAN$4 billion per annum going forward (includes CAN$3 billion of sustaining capex) - no greenfields.
  • Substantial volumes of low-cost capacity that can be restarted as and when appropriate.
  • Fixed plus variable distribution policy effective from 2018 that leverages the resilience of marketing cash flows, while providing upside to commodity prices. US$1 billion distribution recommended for 2017.
  • Strong investment grade balance sheet that offers headroom for highly selective growth opportunities.
  • Annualised free cash flow of US$6.9 billion at current spot prices, based on spot annualised Adjusted EBITDA of US$14.6 billion.