Glencore's Koniambo operation, in New Caledonia
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.