Glencore Maintains 2024 Production Targets Amid Positive Q3 Performance

Glencore has reaffirmed its full-year 2024 production guidance across all commodities, the company announced in its third-quarter production report on October 30.

This stable outlook reflects the addition of steelmaking coal from the July acquisition of a 77% stake in Elk Valley Resources (EVR), Canadian company Teck’s steelmaking coal business, according to CEO Gary Nagle.

Throughout Q3, several key operations saw production increases. African Copper output rose by 6,000 tons (13% quarter-over-quarter), Antapaccay by 9,000 tons (35%), Kazzinc by 13,000 tons (27%), Murrin Murrin by 1,000 tons (7%), and Australian energy coal by 3.6 million tons (27%).

Glencore expects full-year marketing adjusted earnings before interest and taxes to reach between $3 billion and $3.5 billion, at the upper end of its long-term guidance.

Production Highlights:

• Copper: Total production for Q3 reached 705,200 tons, down 2% from 2023 due to the sale of Cobar assets. However, Q3 sequential production rose 9% to 242,600 tons, driven by improvements at Antapaccay, Collahuasi, and the Democratic Republic of Congo.
• Cobalt: Production fell to 26,500 tons, a decrease of 18% from 2023, largely due to planned lower output at Mutanda and reduced grades at Kamoto Copper Company.
• Zinc: Output reached 643,600 tons, down 4% from last year, impacted by the sequencing at Antamina and disruptions from a cyclone at McArthur River. Excluding Antamina, zinc production rose by 5% year-over-year.
• Nickel: Production was down 9% to 62,300 tons, reflecting a transition to care and maintenance at Koniambo. Adjusted for Koniambo, nickel output grew 18%.
• Ferrochrome: Production remained stable at 894,000 tons, in line with last year’s levels.
• Steelmaking Coal: Total output reached 11.1 million tons, boosted by Canadian assets acquired with EVR. Australian production slightly surpassed 2023 levels.
• Energy Coal: Production fell by 7% to 73.1 million tons due to mine closures in Australia, rail constraints in South Africa, and permitting delays at Colombia’s Cerrejón mine.

Glencore’s consistent performance across commodities underscores the company’s resilience amid global market shifts and operational challenges.