Diversified resources group Glencore has maintained its full-year guidance for most of its metals and expects higher production levels in the second half.
“Across the portfolio, our full-year 2024 production guidance has been maintained and we have added additional steelmaking coal volumes in [the second half of] 2024, after successful closing of the EVR [Elk Valley Resources] acquisition on July 11,” CEO Gary Nagle said in a statement on Tuesday.
“As anticipated, 2024 is expected to be a year of two halves, whereby the tracking of our year-to-date production versus guidance is expected to be caught up during the second half of the year,” he said.
The group updated 2024 steelmaking coal production guidance to 19-million to 21-million tonnes, to include 12-million tonnes of expected EVR volumes in the second half.
“As announced earlier this month, post the acquisition of EVR, we are now in the process of consulting with shareholders to assess their views regarding the potential demerger of our coal and carbon steel materials business. We expect to be able to announce the outcome of such engagement and the decision of the board regarding the potential demerger alongside our interim results next week,” Nagle said.
On a like-for-like basis, own-sourced copper production of 462,600 tonnes for the six months to end-June was 2% below the first half of 2023. Own-sourced cobalt production was 27% lower than a year ago, reflecting planned lower run-rates at Mutanda in Democratic Republic of Cong (DRC) in response to the current weak cobalt pricing environment and lower throughput and cobalt grades at Kamoto Copper Company in DRC.
Zinc production was 4% lower year on year, while own sourced nickel production declined 5%.
Attributable ferrochrome production of 599,000 tonnes was 16% below the first half of 2023, as the Rustenburg smelter remained idled in response to weak market conditions and pending an improved price-cost environment.
Coal production of 50.6-million tonnes was 7% lower year on year, mainly reflecting the progressive effect of scheduled mine closures, the temporary effect of longwall moves in Australia in 2024 and export rail constraints in SA, Glencore said.
The group expected to report a meaningful reduction in net working capital in the first half, contributing to an expected decline in reported net debt over the period, it said.
The group expects to release its financial results for the period on August 6.
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.