FTSE 100 commodity trader and mining outfit Glencore (GLEN) is languishing close to multi-year lows in the wake of its latest disappointing results (19 February).

Management’s frustration at the company’s current valuation – which stands at 11.7 times 2025 consensus forecast EPS (earnings per share) – led it to speculate in the wake of the numbers that it might seek to shift its primary listing away from London to New York.

Whether this would resolve all its problems is open to question: having controversially opted to retain its thermal coal operations last year, weak prices in this space have helped put earnings under pressure.

As Jefferies analyst Chris LaFemina notes: ‘Glencore’s exposure to thermal coal is a key point of differentiation, and that exposure has been a problem recently.’

LaFemina adds: ‘Moving its primary listing to the US could help Glencore as this could open the company up to a new broader shareholder base and improve the liquidity in its shares.

‘Management and the board are considering this, but we believe this process would take 12 to 18 months to complete due to accounting and legal factors meaning the benefits of moving to the US would take time to be realised.’

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