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(Alliance News) - Glencore PLC said on Thursday its first-quarter production was in line with its expectations, but noted that this performance mirrored a number of "temporary impacts", including geotechnical challenges and Covid-19 absenteeism.
The Baar, Switzerland-based commodity trader and miner reported that copper production dropped by 14% to 257,800 tonnes in the first quarter, from 301,200 tonnes in the same quarter last year, weighed by temporary geotechnical constraints at Katanga, the sale of Ernest Henry Mining (Pty) Ltd in January and lower copper units produced within Glencore's zinc business.
Zinc production in the first quarter fell by 15% to 241,500 tonnes from 282,600 tonnes previously, reflecting Mount Isa coronavirus-related absenteeism and the planned mining cessation of Iscaycruz in Peru in the third quarter.
Attributable ferrochrome output declined by 3% to 387,000 tonnes from 399,000 tonnes.
For the first three months, nickel production was 22% higher at 30,700 tonnes, compared to 25,200 tonnes.
Coal production rose by 16% to 28.5 million tonnes from 24.5 million tonnes due mainly to higher attributable production from the Cerrejon coal mine joint venture in Colombia, following the acquisition in January of the remaining two-thirds interest from BHP PLC and Anglo American PLC.
Entitlement interest oil production surged by 40% to 1.5 million barrels from 1.1 million barrels as a result of the start of the gas phase of the Alen project in Equatorial Guinea from March 2021.
Glencore made some changes to its full-year guidance, reducing its forecast for copper to 1.11 million tonnes from 1.15 million tonnes in the previous guidance, compared to 1.19 million tonnes in 2021.
The group also trimmed its annual cobalt production outlook to 45,000 tonnes from 48,000 prediction. In 2021, output reached 31,300 tonnes.
In addition, due to the slower-than-expected ramp-up at Zhairem, it cuts full-year zinc production guidance by 9% to 1.01 million tonnes from 1.11 million tonnes, compared to 1.12 million tonnes in 2021.
However, full-year nickel production outlook rose to 118,000 tonnes from 115,000 tonnes in the previous guidance. Output stood at 102,000 tonnes in 2021.
Also annual ferrochrome production forecast was revised up to 1.50 million tonnes from 1.46 million tonnes, compared to 1.46 million tonnes in 2021.
Shares in Glencore jumped by 2.5% to 491.80 pence on Thursday morning in London, while they rallied by 5.0% at ZAR96.96 in Johannesburg.
By Artwell Dlamini; artwelldlamini@alliancenews.com
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