How Glencore's restructure is progressing at the half

The third detail was half-year adjusted cash profits of $4.02bn, which despite major commodity price falls was just 13 per cent down on last year's total. This figure once again allowed Glencore to trumpet its opaque marketing segment, which boosted underlying profits by 14 per cent to $1.2bn in the period. Conveniently, this downplays the $3.1bn in depreciation and amortisation charges booked by the industrial division, which when combined with the trading business resulted in adjusted operating profits of $875m, a full 38 per cent lower than the first six months of 2015.

However, in setting a bullish forecast of at least $4.5bn in annual free cash flow, the company can lean on an impressive drop in cash costs for its four key commodities. Most impressively, the increase in the value of gold credits now means Glencore could make money giving away its zinc production, which even after excluding by-products still cost just 15¢ per pound in the period, or less than half 2015's full-year figure.

And while declines in thermal coal and nickel costs are expected to reverse in the second half of 2016, copper costs are now just 97¢ a pound, 7¢ lower than full-year guidance and 29 per cent down on 2015. The company is courting potential buyers for its higher-cost copper operations at Lomas Bayas in Chile and Cobar in Western Australia.

Analysts at Canaccord Genuity are forecasting full-year cash profits of $8.5bn and adjusted EPS of 6¢, rising to $11bn and 15¢ in 2017 ($8.7bn and 10¢ in 2015).