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Diversified miner Glencore expects to meet
the $3.2-billion top end of its full-year earnings before interest and taxes
guidance owing to a strong performance from the company’s marketing business.
This was despite the company reporting only
modest increases year-on-year in copper production, to 598 000 t, and cobalt
production, to 14 800 t, in the six months ended June 30.
Glencore explains in a half-year output
report that its copper and zinc businesses met its interim guidance, while coal
volumes were 16% lower year-on-year as a result of a range of factors,
including the Prodeco operation, in Colombia, being on care and maintenance and
market-driven supply reductions in Australia.
The company’s coal output totalled
48.7-million tonnes, of which coking coal comprised 4.1-million tonnes,
semi-soft coal comprised 2.6-million tonnes and thermal coal comprised
42-million tonnes.
In turn, the company’s nickel production of
47 000 t was 14% lower year-on-year, owing to various operating issues at the
Koniambo operation, in New Caledonia – the restart of its second production
line is currently targeted for August.
Zinc production was 6% higher year-on-year
at 581 800 t and gold and silver production were 3% and 13% higher
year-on-year, at 423 000 oz and 15-million ounces, respectively.
Attributable ferrochrome production of 773
000 t was 66% higher year-on-year, reflecting the suspension of mining and
smelting operations through much of the second quarter of 2020.
Moreover, Glencore says its entitlement
interest oil production of 2.6-million barrels of oil equivalent was broadly in
line with the comparable six months of last year.
The company maintains its copper guidance
for the year at about 1.2-million tonnes, as well as its cobalt guidance at
about 35 000 t.
Zinc guidance for the year has been lowered
slightly to 1.17-million tonnes, as has the nickel guidance to 105 000 t.
Glencore set the bar lower for coal at
about 104-million tonnes and edged the expectation for ferrochrome higher at
1.43-million tonnes.
CEO Gary Nagle comments that the company’s
industrial operating assets continued to manage operations responsibly and
effectively despite the health and logistical challenges presented by Covid-19,
all while the market for each commodity remains uncertain going forward.