• The inadequacy of Glencore ocfs quality and quantity precludes any cash distribution

1. GLENCORE'S FINANCIAL ALCHEMY AND ITS
CASH-FLOWS FROM THE OPERATIONS
INADEQUACY.
"We reinstate the dividends. $1bn to be paid, with a new structure from 2018 paying $1bn base of
marketing cash flows."
Glencore Investor update call 2016
Summary of Glencore's 1H-2016
 The EBIT coverage of net interest is 1.12, in the lowest decile.
 Depreciation accounts for 78% of Glencore EBITDA
 Glencore's Operating Cash-flows are at 10-quarter low.
 Depreciation itself represents 89% of Glencore Operating Cash-Flows
 The inadequacy of Glencore ocfs quality and quantity precludes any cash distribution.

2.  Depreciation accounts for 78% of the EBITDA

4.  The EBIT coverage of net interest is 1.12, in the lowest decile.

5.  Glencore's Operating Cash-flows are at 10-quarter low.

6. Non-cash components represents 89% of Glencore Operating Cash-Flows

7.  The lack of the quality and the inadequate quantity of Operating Cash-flows
precludes Glencore to distribute $1bn.
It predicates that to reinstate the dividend, the trader will:
i) sell more assets or
ii) ostensibly raise more debt-like obligations...
-

8.  This will deteriorate the credit
"Neither Glencore nor any of its associates or directors, officers or advisers, provides any
representation, assurance or guarantee that the occurrence of the events expressed or implied in any
forward looking statements in this document will actually occur".
www.glencore.com/investors/
The negative risk asymmetry of Glencore's is phenomenal. The perceived anomaly that
the trader to capture is the delta of risk sophistication of the investors.

9. -
Simon Jacques is a certified Energy Risk Professional, as distinguished by the prestigi
ous Global Association of Risk Professionals.
Simon Jacques
1-226-348-5610 advising the producer, processor and end-
user in North America.
Commodity trading and finance