The Glencore share price has rallied in the past three consecutive days as interest in mining stocks and commodity prices rebound. The stock is trading at 328p, which is a few points below its highest level this year. This brings its total market capitalization to more than 43 billion pounds, making it one of the biggest mining firms in the world.
Best mining stock?
Glencore has outperformed its key peers in London this year. The stock has risen by more than 28% year-to-date. As a result, it has outperformed companies like BHP, Antofagasta, and Anglo American, as shown below. The same trend is seen when you look at the past 12 months when the stock price has more than doubled.
The Glencore share price has jumped because of the overall strength of its business. The recently released half-year results showed that the company made a record adjusted EBITDA of more than 8.7 billion in the first half of the year. This was a 79% increase from the same period last year. Its net income came in at more than $1.3 billion. As a result, the company managed to reduce its total net debt by about 33% to more than 10.6 billion.
By segment, its metals and minerals business generated an adjusted EBITDA of more than 5.6 billion pounds. It has an EBITDA mining margin of more than 44%. Meanwhile, its energy segment had an EBITDA of more than $1.1 billion. As a result, the firm decided to increase its dividends. It is returning about $2.8 billion to shareholders through dividends and buybacks.
Still, there are questions about the health of the commodities sector. For one, there are signs that China is cracking down on speculation. This has seen key commodities like iron ore and copper struggle.
Glencore share price analysis
The daily chart shows that the Glencore share price is trading at 325p. This price is about 5.20% below the highest point this year. At the same time, the shares have formed a horizontal or ascending channel that is shown in red. It is also being supported by the 25-day and 50-day moving averages (MA). The current price is slightly below the upper side of the channel.
Therefore, the GLEN share price will likely remain at the current range in the near term. In the longer term, the stock will likely break out in either direction, with the key support and resistance will be at 300p and 340p.