Glencore Reports Production Falls in Main Metrics — Commodity Comment

Glencore has reported production falls in its main commodities for the first half of the year but backed its guidance for most of them, except steelmaking coal, which was raised due to the acquisition of Elk Valley Resources this month. Here's what the Anglo-Swiss miner had to say:

On 1H production:

"On a like-for-like basis, removing 15,000 metric tons of Cobar (sold in June 2023) volumes from the prior period, own sourced copper production of 462,600 tons was 2% below 1H 2023."

"Own sourced cobalt production of 15,900 tons was 5,800 tons (27%) lower than 1H 2023, reflecting planned lower run-rates at Mutanda in response to the current weak cobalt pricing environment and lower throughput and cobalt grades at KCC."

"Own sourced overall zinc production of 417,200 tons was 17,500 tons (4%) below 1H 2023, mainly reflecting lower zinc tons from Antamina (34,900 tons), given its current year expected copper/zinc mine sequence, partly offset by the ramp up of Zhairem (24,800 tons)."

"Own sourced zinc production from the zinc department itself (i.e. excluding Antamina) was 17,400 tons (5%) higher than 1H 2023."

"Own sourced nickel production of 44,200 tons was 2,200 tons (5%) lower than 1H 2023, reflecting Koniambo's transition to care and maintenance (7,700 tons), partially offset by recovery from the INO supply chain constraints seen in the base period (4,200 tons) and higher production from Murrin Murrin (1,300 tons)."

"Excluding Koniambo (KNS), own sourced nickel production of 39,200 tons was 5,500 tons (16%) higher than 1H 2023."

"Attributable ferrochrome production of 599,000 tons was 118,000 tons (16%) below 1H 2023, as the Rustenburg smelter remains idled in response to weak market conditions and pending an improved price/cost environment."

"Coal production of 50.6 million tons was 3.6 million tons (7%) lower than 1H 2023, mainly reflecting the progressive impact of scheduled mine closures, the temporary impact of longwall moves in Australia in 2024 and export rail constraints in South Africa."

On Guidance:

                   Previous       Current 
                   guidance       guidance 
Copper kt          950-1,010      950-1,010 
Cobalt kt              35-40          35-40 
Zinc kt              900-950        900-950 
Nickel kt              80-90          80-90 
Ferrochrome kt   1,100-1,200    1,100-1,200 
Steelmaking coal mt      7-9          19-21 
 

Shares at 0715 GMT were down 2.70 pence, or 0.6%, at 424.75 pence. They are currently down 10% over the year to date.

Write to Ian Walker at ian.walker@wsj.com

(END) Dow Jones Newswires

July 30, 2024 03:45 ET (07:45 GMT)

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