30th Jul 2025 08:56
(Alliance News) - Glencore PLC on Wednesday reported mixed production for the first half of 2025, and raised its marketing guidance after selling subsidiary Viterra Ltd earlier this month.
The Barr, Switzerland based commodity trading and mining company said own copper production fell 26% to 343,900 tonnes for the six months that ended June 30 from 462,600 tonnes the year prior, primarily due to lower head grades and recoveries associated with planned mining sequencing.
Copper equivalent productions was up 5%, due to Elk Valley Resources' steelmaking coal volumes.
Glencore acquired a 77% interest in Elk Valley in July last year.
Steelmaking coal production multiplied to 15.7 million tonnes, from 3.4 million, with Elk Valley accounting for 12.7 million tonnes.
Energy coal production was up 2% to 48.3 million tonnes from 47.2 million tonnes, reflecting stronger Australian production offsetting recent voluntary production cuts at Cerrejon coal mine in Colombia.
Cobalt production rose 19% to 18,900 tonnes from 15,900 tonnes, while own zinc output was up 12% to 465,200 tonnes from 417,200 tonnes. Lead production inched up 3% to 90,900 tonnes from 87,900 tonnes.
However, Glencore posted lower gold production, which fell 18% to 301,000 ounces from 369,000 ounces, while silver was 9,097 ounces, up 0.2% from 9,117 ounces.
Nickel production decreased by 17% to 36,600 tonnes from 44,200 tonnes, while Ferrochrome was down 28% to 433,000 tonnes from 599,000 tonnes, reflecting pressure on smelting conversion margins.
Chief Executive Gary Nagle said Glencore had continued to make "significant" progress over the first half, positioning itself for further "value accretive growth".
"A comprehensive review of our industrial asset portfolio during the period recognised opportunities to streamline our industrial operating structure, to optimise departmental management and reporting, and to support enhanced technical excellence and operational focus," Nagle said.
Looking ahead, Glencore raised its marketing guidance, following the sale of Viterra in July.
Glencore said early this month the merger between its former agriculture investment Viterra Ltd and New York-listed Bunge Global SA had closed. It received 32.8 million Bunge shares, equal to a 16.4% stake in the enlarged group, as well as around USD900 million in cash.
The long-term marketing adjusted earnings before interest and taxes guidance bumps up to between USD2.3 billion and USD3.5 billion a year, from the previous estimate of between USD2.2 billion and USD3.2 billion.
The mining group reduced 2025 copper guidance to between 850,000 tonnes and 890,000 tonnes, from 850,000 tonnes and 910,000 tonnes, forecast previously. In 2024, output was 951,600 tonnes in 2024.
Steelmaking coal production estimates are unchanged at between 30 million tonnes and 35 million tonnes in 2025 from 19.9 million tonnes in 2024. Energy coal output guidance is up to 90 million tonnes and 96 million tonnes, from 87 million tonnes and 95 million tonnes previously. In 2024, energy coal production was 99.6 million tonnes.
Zinc production guidance narrows to between 940,000 tonnes and 980,000 tonnes, from 930,000 tonnes and 990,000 tonnes. Zinc output was 905,000 tonnes in 2024.
Cobalt output guidance is now between 42,000 tonnes and 45,000 tonnes, from 40,000 tonnes to 45,000 tonnes previously. Production was 38,200 tonnes in 2024. Glencore noted that a ban on cobalt exports from the Democratic Republic of Congo is currently in place, with deposits stored in the DRC to "be sold in due course".
Nickel production guidance is lowered to 74,000 tonnes and 80,000 tonnes from 74,000 tonnes and 86,000 tonnes. Output was 82,300 tonnes in 2024.
Glencore shares were up 0.8% to 308.30 pence each on Wednesday morning in London, and were 0.1% higher at ZAR73.27 each in Johannesburg.
By Artwell Dlamini, Alliance News senior reporter South Africa
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