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Glencore Returns $1.18 Billion to Investors on Record Profit

(Bloomberg) Glencore Plc said it could dramatically increase returns to shareholders going forward as the company cashes in on high prices for the commodities it mines and trades. Glencore announced $1.18 billion in dividends and share repurchases Thursday after surging metals prices helped drive first-half earnings to a record. But while the buyback may be a welcome surprise for investors, Glencore’s payouts remain well below mining rivals like Rio Tinto Group and Anglo American Plc, which last week announced a combined $13.2 billion in shareholder returns, also after record profits. Glencore’s now in a position to pay out a higher percentage of its earnings after reducing borrowings, Chief Financial Officer Steve Kalmin told reporters. The company cut net debt by 33% from a year earlier to the bottom of its long-term range. The current dividend policy is to pay $1 billion from its trading unit, plus 25% of free cash flows from the sprawling mining business. “Given where the b ....

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