Glencore shares are jumping after it announced a drastic debt reduction plan
REUTERS/Arnd WiegmannGlencore CEO Ivan Glasenberg smiles as he leaves after the company's annual shareholder meeting in the Swiss town of Zug May 9, 2012.
Glencore, the troubled mining and commodities trading company, is accelerating its programme to pay off a huge debt pile.
The company said it was targeting a total net debt of $18 billion (£12.8 billion) next year, trimming several billion dollars more debt from its pile than originally planned.
Chief executive Ivan Glasenberg said: "Glencore is well placed to continue to be cash generative in the current environment – and at even lower prices. We retain a high degree of flexibility and will continue to review the need to act further as required."
Glencore's shares have plummeted by more than 60% this year on investor concerns that falls in commodities prices and slowing demand in China would leave the company unable to pay its huge debts.
But the shares are flying on Thursday following the news of the debt reduction plan, up by almost 10%.
Here's what that looks like:
Investing
To help hit its debt repayment target, Glencore is slashing its capital expenditure from $5 billion to $3.8 billion for 2016.
Last month the company paid three bonds worth around $2 billion and repurchased another $400 million of debt from creditors.
Here's a chart from the investor presentation that shows just how far Glencore hopes its debt will fall:
Glencore
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