Glencore reports lower metals production for the first nine months and reiterates outlook

Glencore reported on Wednesday lower production of copper, cobalt and zinc for the first nine-month period, but it reiterated its expectation that its trading profit would reach the upper end of its long-term target range, up to $3.5billion.

Own-sourced copper production of the miner and traders fell by 4% to 705 200 metric tons while its own-sourced cobalt production dropped 18% to 26 500 tons.

Glencore has not changed its outlook for 2024 for copper, which is a critical metal for applications in the energy transition. The company expects it to be between 950,000 and 1,01 million tons.

The trading division of the company, which will reach a record profit of $6.4 billion by 2022, is responsible for coal, oil and liquefied gas, along with other products.

Glencore's full-year marketing profit before interest and taxes (EBIT), which is the company's forecast for the year, will be in the range of $3 billion to $35 billion. This is at the upper end of its long-term forecast of $2.2 billion up to $3.2 billion.

After completing the purchase of Teck Resources’ coking coal assets, the miner kept its coal business. It also secured backing from its majority investors who expect lucrative returns from the fossil fuel.

Gary Nagle, CEO of the company, said in August that it could purchase more coal for steelmaking.

The company is expected to produce between 98 and 106 millions tons of thermal coal this year. The company has produced 73.1 millions tons, which is 7% less than the previous year.

After the acquisition, 2024's steelmaking coal production is expected to increase from 7- 9 million tons to 19-21 million tons.

(source: Reuters)