Despite a weaker operational performance in the first nine months, diversified natural resource miner Glencore said it remains on track to meet full-year production guidance and achieve trading profits in the upper end of its long-term range.
Glencore reported cobalt production at 26,500 tonnes for the first nine months of the year, down 18% from the comparable period — while zinc and nickel output fell by 4% and 9%, respectively.
The decline in cobalt production was driven by lower throughput and grades at mines in the Democratic Republic of Congo (DRC), plus planned lower run-rates in response to a weak pricing environment, the group said.
While copper output recovered somewhat in the third quarter on the back of higher feed grades and operational improvements, copper production for the first nine months was down 4% year on year at 705,200 tonnes, weighed down by a challenging first half of the year.
The progressive impact of planned mine closures, permit delays and export rail constraints in SA saw energy coal production reported at 73.1 million tonnes, down 7% from last year's comparable period — while steelmaking coal was up at 11.1 million tonnes, reflecting the recent acquisition of Elk Valley Resources (EVR).
CEO Gary Nagle said: “Our full-year 2024 production guidance has again been maintained and reflects the additional steelmaking coal volumes that have contributed to our portfolio since closing of the EVR transaction on July 11 2024.”
Despite production declining from last year, Nagle said the group achieved key anticipated production improvements in the third quarter, including a 13% increase at African Copper, 35% at Antapaccay, 27% at Kazzinc, 7% at Murrin Murrin and 27% in Australian energy coal.
On the back of these achievements, Nagle said the group continues to expect full-year trading profit to be between $3bn-$3.5bn — which is the upper end of its long-term annual guidance of $2.2bn-$3.2bn.
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