Record copper prices struggle to counter the decline in coal, with Glencore's (GLNCY.US) annual profit falling by 6% year-on-year.

Notice that Glencore (GLNCY.US) saw a decline in annual profits, as record copper prices failed to offset the impact of a decrease in profits from its massive coal business. The financial report shows that the company's total revenue in 2025 reached $247.5 billion, a 7% year-on-year increase; core profits were $13.5 billion, a 6% decrease from the previous year. Despite the profit decline, Glencore has announced plans to return $2 billion to shareholders, including an additional $800 million in dividends. Just two weeks before this performance was announced, negotiations between Rio Tinto plc Sponsored ADR and Glencore collapsed, temporarily ending a deal that was expected to create the world's largest mining giant. The two sides failed to reach a consensus on the issue of how much premium Rio Tinto plc Sponsored ADR should pay, leading to a deadlock in the negotiations. Rio Tinto plc Sponsored ADR had hoped to expand its exposure in the copper sector by acquiring Glencore, especially as copper prices hit record highs last month. The acquisition of Glencore could have doubled Rio Tinto plc Sponsored ADR's copper production and increased future growth potential. The attractiveness of copper has become increasingly evident over the past year, with prices soaring by approximately 35%. Mining giants have long warned that future supply could become tight due to a scarcity of new mines and expected demand growth. However, Glencore's copper business has come under intense scrutiny from investors in recent years. Due to declining production and the company's repeated failure to meet or lower production targets, especially amidst falling coal prices, the situation has become even more severe. Glencore CEO Gary Nagle has been trying to revitalize the copper business, which has seen production fall by about 40% since 2018. At the end of last year, the company announced plans to double production over the next decade and expressed confidence that 2026 would be the low point for production, with a subsequent recovery starting from 2027. The company announced on Wednesday that it has reached an agreement with the national mining company of the Democratic Republic of the Congo on a comprehensive land package, which will allow it to increase its copper production in the country. The fluctuating profits in the metal and coal businesses are also reflected in Glencore's trading profits. Profits from its large-scale commodity trading business also fell to $2.9 billion. While metal traders have made hefty profits and shown strong performance by exploiting the tariff threats from U.S. President Trump, energy and coal trading profits still declined by 32%. The company's net debt remains relatively stable at $11.2 billion. Although this figure is higher than the company's target level (which usually limits additional dividends), Glencore has stated that it will still pay additional dividends, as it plans to cash in its global shares in agricultural trading company Bunge Global SA at some point in the future.