Glencore (LSE:GLEN, Financial), one of the world's largest mining firms, was a top contributor for the first quarter. In January, the Swiss-headquartered company announced it would sell its considerable stake in Mopani Copper Mines to the Zambian government for $1.5 billion. We view Mopani as a geographically difficult asset and believe this is an excellent outcome for Glencore. This is part of the company's larger efforts to reduce exposure to the long tail of less financially significant assets. In addition, we were pleased with Glencore's full-year results, disclosed in February, as earnings in both the industrials segment and the marketing segment exceeded our expectations by 10% and 4%, respectively. The industrials segment benefited from a recovery in commodities prices from Covid-19 lows, strict cost-control measures and higher production. In addition, the company's group adjusted earnings for the full-year period ($11.56 billion vs. $10.69 billion) came in ahead of consensus estimates. Balance sheet leverage at the end of the year was within management's target range, and Glencore proposed a $0.12 per share dividend, which surpassed analysts' estimates of $0.0625 per share. Following the release, we spoke with current CEO Ivan Glasenberg and his newly appointed replacement Gary Nagle. In our view, Nagle's focus on improving asset returns should lead to improved financial results over time. As a result, we remain optimistic that further value can be unlocked under Glencore's new leadership.
From David Herro (Trades, Portfolio)'s Oakmark International Fund first-quarter 2021 shareholder commentary.
