Glencore brought in Newgate after its shares fell 29% in one day.
“Investors, previously wary, now believe management.”
A programme was agreed to show Glencore could deliver on debt reduction, had the right strategy for weak commodity prices and was financially robust. This involved background briefings, factsheets and clear and concise public statements.
The first fruits came when Glencore announced its Corporate Update six weeks later. Helen Thomas, in the Wall Street Journal’s Heard on the Street, said: “Investors, previously wary, now believe management.” The next key milestone was the Investor Day five weeks later. Glencore shares ended the day nearly 8% ahead. Evy Hambro, mining guru at investment giant Blackrock, said: “Thank you for a capital markets day call that is actually delivering on its plans.”
By the group’s results three months later, the FT’s Lex wrote a highly positive comment entitled “Glencore: with flying colours”.