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(Alliance News) - Swiss miner and trader Glencore PLC lowered its 2020 production guidance on Wednesday, due to the effects of the Covid-19 pandemic and following mixed first-quarter output.
For the three months to the end of March, copper production declined by 9% to 293,300 tonnes from 320,700 tonnes the same period a year before, mainly hurt by a fall from African Copper.
Gold production dipped by 1% year-on-year to 199,000 ounces, and coal dropped by 4% to 31.9 million tonnes. Ferrochrome output was down 3% to 388,000 tonnes, lead production dropped by 17% to 61,700 tonnes, and cobalt output fell by 44% to 6,100 tonnes.
Conversely, zinc production increased by 13% to 295,600 tonnes from 262,300 tonnes the prior year. Nickel output rose by 4% to 28,200 tonnes and silver production was up 2% to 7.78 million ounces.
Looking ahead, due to the continued and uncertain impact of the virus outbreak, Glencore cut its guidance for almost all of its commodities. The miner expects copper production of 1.25 million tonnes for the year, down from prior guidance at 1.30 million tonnes, due to a slower ramp-up of the Mopani smelter.
Cobalt guidance was reduced to 28,000 tonnes from 29,000 tonnes, and zinc to 1.16 million tonnes from 1.27 million tonnes, on plans to bring zinc production units to the market on a delayed basis.
Nickel output forecast was dropped to 122,000 tonnes from 125,000 tonnes, reflecting the temporary suspension at Raglan in Quebec.
Due to the suspension of operations in South Africa, ferrochrome production for the year is now expected to be at 1.00 million tonnes, down from prior guidance of 1.34 million tonnes.
Finally, coal output guidance was cut to 132,000 tonnes from 135,000 tonnes following temporary suspensions of Prodeco and Cerrejon in Colombia.
"The global impact of the Covid-19 pandemic is an unprecedented challenge for individuals, governments and companies alike. Disruptions to our business have, to date, been manageable and the majority of our assets are operating relatively normally, a credit to our people that have stepped up to the challenge of a changed working environment, especially those who continue to carry out their work on site at our industrial assets - Glencore's frontline," said Chief Executive Officer Ivan Glasenberg.
"Some industrial assets have been temporarily suspended, generally in line with national and regional lockdowns. Our updated full year production guidance reflects these impacts," Glasenberg added.
Shares in Glencore were up 0.4% at 155.36 pence on Thursday in London, while its Johannesburg shares were 0.4% lower at ZAR35.08.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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