Glencore has ruled out a shift of its primary listing to the United States, reaffirming its commitment to the London Stock Exchange despite the market’s recent struggles to retain large multinational firms.
The Swiss-based commodities trader and miner made the announcement on Wednesday, alongside results showing a deepening of net losses in the first half of 2025 and a $1 billion cost-cutting initiative that will involve widespread job cuts.
The decision to stay in London provides a temporary reprieve to the UK market, which has witnessed a steady exodus of high-profile companies in recent years.
Firms such as Arm Holdings and Flutter Entertainment have opted to list in New York in search of stronger valuations and broader investor interest.
Glencore, one of the largest companies in the FTSE 100, had sparked speculation in February after saying it was reviewing its listing location.
“London is where we are happy with,” said chief executive Gary Nagle in a call with journalists on Wednesday.
“We don’t believe there is a value-accretive proposition to move exchanges right now.”
Nagle confirmed that Glencore had reviewed alternative exchanges and had identified New York as the most attractive option, but the company ultimately decided that uncertainties around S&P 500 index inclusion and the high cost of such a move did not justify the change.
He added that the firm would continue to evaluate its options, leaving the door open for future moves should conditions change.
Glencore shares have fallen by more than 20% over the past year, with some analysts saying that a switch to the US could be a positive catalyst.
Steep impairment and falling production weigh on earnings
The decision to retain the London listing came as the company posted worse-than-expected financial results for the first half of the year.
Glencore reported a net loss of $655 million, sharply wider than the $233 million loss it posted during the same period last year.
Analysts had anticipated a return to profitability, with estimates pointing to a net profit of around $337 million.
The disappointing figures were driven by a $900 million impairment charge related to the company’s Cerrejón thermal coal mine in Colombia, which has been impacted by reduced production and lower global coal prices.
Coal prices, which soared in the aftermath of the Ukraine war, have since come down, dragging on Glencore’s core earnings.
Copper production also fell 26% year-on-year due to lower ore grades and operational challenges at various sites.
Glencore said it plans to offset the shortfall in the second half of the year.
Its adjusted EBITDA for the first half fell 14% to $5.43 billion, falling short of analysts’ expectations of $5.56 billion.
Earnings from the company’s industrial division, which includes mining operations, declined 17% to $3.8 billion.
Cost cuts to hit workforce as debt rises
Facing pressure to restore profitability, Glencore unveiled a $1 billion restructuring plan that will see hundreds of jobs slashed from its 150,000-strong global workforce.
The initiative is expected to be completed by the end of 2026.
The company said the goal is to improve operational efficiency and better align the business with current market realities.
The miner’s adjusted net debt also increased to $13.5 billion, above its stated target of $10 billion, prompting concerns about balance sheet strength.
Shares in Glencore dropped by 3.5% to 290.04 pence in early London trade following the announcement.
While the decision to remain listed in London may reassure UK investors, analysts say Glencore’s performance challenges are far from over.
Jefferies analyst Christopher LaFemina described the results as “weak” and pointed to the higher-than-expected debt and impairments as headwinds that will continue to weigh on investor sentiment.
Even as the company maintains its London base, a sustained recovery in commodity prices and operational performance will likely be needed to restore shareholder confidence and reverse the recent share price decline, which has exceeded 20% over the past 12 months.
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