Glencore Reaffirms Production Guidance as Coal Output Recovers -- Commodity Comment
October 29 2021 - 03:03AM
Dow Jones News
By Jaime Llinares Taboada
Glencore PLC on Friday raised guidance for its marketing
division and reaffirmed expectations for the mining business.
Here's what the commodity giant had to say:
On mining:
"The asset base has largely performed in line with our
expectations and our full year production guidance remains
unchanged. Notably, as energy markets have improved, we are
recovering from the market-driven production cuts initiated within
our Australian coal portfolio in 2H 2020."
"Own sourced copper production of 895,500 [metric tons] was
39,200 tons (4%) below the comparable 2020 period, reflecting lower
mined grades at various operations. Approximately half this
variance relates to lower copper by-product at non-Copper
department assets."
"Own sourced zinc production of 855,800 tons was in line with
the comparable 2020 period. Recovery from 2020 Covid restrictions
was offset by temporarily lower Kazzinc production pending the
ramp-up of the recently commissioned Zhairem mine."
"Own sourced nickel production of 71,100 tons was 10,700 tons
(13%) lower than the comparable 2020 period due to planned
maintenance at Murrin Murrin and various operating issues at
Koniambo."
"Attributable ferrochrome production of 1,071,000 tons was
420,000 tons (65%) higher than the comparable 2020 period,
reflecting that operations were suspended for much of 2Q 2020 due
to the South African national lockdown, with a period of ramp-up
thereafter."
"Coal production of 76.3 million tons was 7.2 million tons (9%)
lower than the comparable 2020 period, reflecting a full period of
Prodeco care and maintenance, the progressive recovery from the
market-related reductions across the Australian portfolio initiated
in 2H 2020 and lower domestic production/demand in South
Africa."
"Entitlement interest oil production of 4.1 million barrels of
oil equivalent (boe) was 0.8 million boe (23%) higher than the
comparable 2020 period. This mainly reflects the gas phase of a
project in Equatorial Guinea that commenced in February 2021, and a
full period contribution from the new Cameroon well. The Chad
fields remained on care and maintenance throughout 2021."
On marketing:
"Basis Marketing's continued strong performance, we now expect
full year 2021 Adjusted EBIT to exceed the top end of our $2.2-3.2
billion per annum long-term guidance range."
Write to Jaime Llinares Taboada at jaime.llinares@wsj.com;
@JaimeLlinaresT
(END) Dow Jones Newswires
October 29, 2021 02:48 ET (06:48 GMT)
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