Glencore maintains full-year guidance as first-quarter production meets expectations

Diversified miner Glencore’s overall production for the first quarter was broadly in line with the company’s expectations, with production reflecting that many of its operations continue to maintain thorough Covid-19 safe working practices.

Full-year production guidance, however, has been maintained for Glencore’s key commodities, while full-year earnings before interest and taxes are expected to be within the top half of the miner’s long-term guidance range of between $2.2-billion and $3.2-billion.

Glencore’s own-sourced copper production of 301 200 t was 3% higher year-on-year, mainly as a result of productivity improvements and mine plan sequencing at the South American operations including Collahuasi, Antamina and Antapaccay.

Own-sourced zinc production of 282 600 t was 4% lower year-on-year, mainly as a result of lower grades and Kazzinc’s Maleevsky mine and mine sequencing at Kidd.

Own-sourced nickel production, meanwhile, fell by 11% year-on-year to 25 200 t primarily reflecting maintenance at Konjambo.

Attributable ferrochrome production of 399 000 t was 3% higher year-on-year, reflecting the impact of the South African national lockdown on the base period, having started late in March 2020.

Coal output, meanwhile, decreased by 7.4-million tonnes year-on-year to 24.5-million tonnes, reflecting Prodeco’s care-and-maintenance status and the market-related production cuts in Australia, actioned in the second half of 2020.

Australian coking coal output increased by 33% year-on-year, while Australian thermal and semi-soft coking coal decreased by 19% year-on-year.

Thermal coal output in South Africa decreased by 8% year-on-year.

Glencore is headed by CEO Ivan Glasenberg.