Glencore Reports Lower Metal Production for First Nine Months, Maintains Outlook

Foreks - Glencore reported a decline in copper, cobalt, zinc, nickel, and thermal coal production for the first nine months but reiterated its expectation for commercial profit to reach the upper end of its long-term range, up to $3.5 billion. The company's own sourced copper production fell by 4% to 705,200 tons, while its own sourced cobalt production declined by 18% to 26,500 tons. Glencore left its overall outlook for copper, a critical metal for energy transition applications, unchanged for 2024, maintaining a range of 950,000 to 1.01 million tons. The profits of its trading division, which reached $6.4 billion in 2022, include not only metals but also coal, oil, liquefied natural gas, and related products. Glencore expects its full-year marketing earnings before interest and taxes (EBIT) to be in a range of $3 billion to $3.5 billion, above the upper limit of the company’s long-term forecast range of $2.2 billion to $3.2 billion. The miner retained its coal business after completing the acquisition of Teck Resources’ coking coal assets and securing the support of investors who are seeing profitable gains from fossil fuels. CEO Gary Nagle indicated in August that the company could purchase more steelmaking coal. With an expected production range of 98 million to 106 million tons this year, Glencore is one of the largest thermal coal producers and exporters. So far, the company has produced 73.1 million tons, reflecting a 7% lower output compared to the previous year. Following the acquisition, 2024 steel production coal output is expected to rise from 7 million-9 million tons to 19 million-21 million tons.