Globe/wire say Trevali, Glencore Create Zinc Pure Play

The Globe and Mail reports in its Wednesday edition that miner-trader Glencore PLC has increased its control of core commodity zinc through a deal with Trevali Mining Corporation (TSX:TV) in which it is selling shares in two mines and helping to create a pure zinc company. A Reuters dispatch to The Globe says that Glencore’s share price has risen around 13 per cent this year, adding to gains of more than 200 per cent in 2016 when it rebounded from a commodities price crash. Its chief executive officer Ivan Glasenberg has said it is well placed for deals, which analysts say are as likely to involve commodity offtake or tactical disposals as acquisitions. Through a $400-million (U.S.) transaction, announced late on Monday, Glencore is selling 80-per-cent and 90-per-cent stakes respectively in a mine in Namibia and another in Burkina Faso to Trevali. Glencore will also increase its direct holding in Trevali from 4 per cent to 25 per cent and gets two seats on the company’s board, compared with one before, while securing exclusive rights to market Trevali’s zinc. Analysts at HSBC in a note said that the “very small transaction” for Glencore gave Trevali critical mass and created “a new zinc play on the market.”

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