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Glencore: Supporting a debt reduction programme through audit

Deloitte served as Glencore plc’s auditor during the commodity downturn in 2015/2016 including supporting their debt reduction plan through the audit process, and transactional support services.

Glencore plc is one of the world’s largest diversified, vertically integrated producers, processors and marketers of natural commodities, headquartered in Switzerland. Deloitte has served as Glencore’s auditor since its Initial Public Offering in 2011. In 2015/2016, in response to declining commodity prices and investor concerns, Glencore initiated a debt reduction and capital preservation plan which included a capital raising, asset sales, precious metal streaming transactions and capex reductions.

Our deep knowledge of the client’s business enabled us to support the company through this challenging period by focusing the audit effort on the debt reduction plan, including reviewing complex transactions and the associated accounting. Deloitte also provided vendor due diligence and transactional support, assisting in the timely sale of certain assets by utilising our historical knowledge of the business to support management’s efforts.

We provided assurance to management, the board and investors over the financial performance and position of Glencore, which included consideration of the accounting impacts of the various debt reduction measures, amongst them several highly complex transactions. 

“Deloitte as our auditor provided both the assurance to management and the board in relation to our financial statements, but also were able to assist with our debt reduction plan. They provided first-rate advice leveraging their knowledge of our business and our working style through the entire process and were always on hand at short notice to support us.”