Mining Weekly

JOHANNESBURG (miningweekly.com) – Diversified mining and marketing company Glencore is well positioned to navigate the current challenges presented by the Covid-19 pandemic, Glencore CEO Ivan Glasenberg said on Thursday, when the London- and Johannesburg-listed company reported first-quarter production and provided a general update.

Glasenberg stated that disruptions to the Glencore business had been manageable and that the volatile and complex commodity trading environment had provided opportunities for its marketing business, such that, to date, it had generated annualised earnings within its $2.2-billion to $3.2-billion a year long-term guidance range.

UBS analysts maintained their buy rating on the Glencore share on the basis of its valuation being attractive and Barclays analysts described Glencore’s first-quarter guidance update as being “much better than expected, with decent upside to its production estimates for all commodities except ferrochrome”. Attributable first-quarter ferrochrome production of 388 000 t was 3% lower than in the first quarter of 2019.

Mining Weekly can report that coal production of 31.9-million tonnes was 1.3-million tonnes, or 4%, lower than in the first quarter of last year, reflecting operating challenges in South Africa and mining sequencing in the Australian coking coal portfolio, partly offset by higher Australian thermal coal production.

The company’s own sourced first-quarter copper production of 293 300 t was 9% lower than the corresponding three months of 2019, with no production from Mutanda, which is on care and maintenance. Mopani’s first-quarter smelter restart processed 5 000 t of a potential 10 600 t of copper contained concentrates produced, while the smelter underwent a multi-month rebuild.

Own sourced zinc production of 295 600 t was 13% higher on the restart of the Iscaycruz mine in Peru in the third quarter of last year and higher grades from Canada.

Four per cent higher own sourced nickel production of 28 200 t reflected the offsetting effects of disruptions in the base period at INO and Koniambo, and maintenance in the current period at Murrin Murrin.

Attributable ferrochrome production of 388 000 t was 14 000 t (3%) lower than the first quarter of 2019.

Entitlement interest oil production of 1.8-million barrels was 58% higher on the drilling campaign in Chad and the Bolongo field in Cameroon.

The operations of Glencore, a major producer and marketer of more than 60 commodities, are on 150 mining and metallurgical sites in more than 35 countries. Its customers span the automotive, steel, power generation, battery manufacturing and oil sectors. It also provides financing, logistics and other services to producers and consumers of commodities. Glencore's companies employ around 160 000 people, including contractors.