Glencore produces 705kt of copper, 643kt zinc and 26,5kt cobalt
On a like-for-like basis, removing 15,000 tonnes of Cobar (sold in June 2023) volumes from the prior period, Glencore reports that own sourced copper production of 705,200 tonnes was 2% below the comparable 2023 period. Sequential quarterly copper production increased by 19,700 tonnes (9%) to 242,600 tonnes, reflecting progressive recovery at Antapaccay following a geotechnical event in H1, higher feed grades at Collahuasi and improved DRC production levels.
Own sourced cobalt production of 26,500 tonnes was 6,000 tonnes (18%) lower than the comparable 2023 period, reflecting planned lower run-rates at Mutanda in the current weak cobalt pricing environment and lower throughput and cobalt grades at KCC.
Own sourced overall zinc production of 643,600 tonnes was 28,500 tonnes (4%) below the comparable 2023 period, mainly reflecting lower zinc tonnes from Antamina (56,500 tonnes), given its current year expected copper/zinc mine sequence, and the McArthur River tropical cyclone impact in Q1 2024 (10,900 tonnes), partly offset by the ramp up of Zhairem (38,800 tonnes). Own sourced zinc production from the zinc department itself (i.e. excluding Antamina) was 28,000 tonnes (5%) higher than the comparable 2023 period. Sequential quarterly zinc production increased by 14,800 tonnes (7%) to 226,400 tonnes, mainly reflecting Zhairem’s ramp-up.
Own sourced nickel production of 62,300 tonnes was 6,100 tonnes (9%) lower than the comparable 2023 period, reflecting Koniambo’s transition to care and maintenance (14,800 tonnes), partially offset by recovery from the INO supply chain constraints seen in the base period (5,600 tonnes) and higher production from Murrin Murrin (3,100 tonnes). Excluding Koniambo (KNS), own sourced nickel production of 57,300 tonnes was 8,700 tonnes (18%) higher than the comparable 2023 period.
Attributable ferrochrome production of 894,000 tonnes was broadly in line with the comparable 2023 period.
Steelmaking coal production of 11.1 million tonnes reflects Canadian steelmaking coal production of 5.7 million tonnes during the quarter, accounting for 82 days of Glencore’s ownership in Elk Valley Resources (EVR). Australian steelmaking coal production was moderately ahead of the comparable 2023 period.
Energy coal production of 73.1 million tonnes was down 7% on the comparable 2023 period, reflecting the progressive impact of scheduled mine closures, longwall moves in Australia in 2024, export rail constraints in South Africa and permit delays at Cerrejón.
Glencore Chief Executive Officer, 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 11 July 2024.
“During the current quarter, key anticipated quarterly sequential production improvements have been achieved, notably at African Copper +6kt (+13% Q3/Q2), Antapaccay +9kt (+35% Q3/Q2), Kazzinc +13kt (+27% Q3/Q2), Murrin Murrin +1kt (+7% Q3/Q2) and Australian energy coal +3.6mt (+27% Q3/Q2).
“Basis Marketing’s performance year to date, we continue to expect full year Marketing Adjusted EBIT in the $3.0-$3.5 billion range, being around the top end of our long-term $2.2-3.2 billion p.a. guidance range.”
