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Glencore shares rally but fears remain for mining giant

Shares in the mining firm Glencore recovered slightly on Tuesday, but remained well down after losing around a third of their value the previous day

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Glencore shares rally but fears remain for mining giant

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Shares in the mining firm Glencore recovered slightly on Tuesday, but remained well down after losing around a third of their value the previous day.

The company realised gains of four percent in London but only after its Hong Kong-listed shares fell 29 percent.

The drop came amid concern over the company’s debt as well as low commodities prices.

But some analysts say the worries were exaggerated.

In a note to clients, Citigroup said Glencore should consider going private if the equity market continued to ‘express its unwillingness to value the business fairly’.

The theory is that a management buyout would make deeper restructuring easier in the face of slumping metals prices.

Copper, aluminium and nickel are all down more than a quarter compared with a year ago.