29th Jul 2022 08:39
(Alliance News) - Glencore PLC on Friday reported mixed production performance for the first half of 2022 that was dominated by the sale of Ernest Henry Mining Pty Ltd, the disposal of its zinc business, and ongoing geotechnical constraints at Katanga.
In the first half which ended June 30, copper production dropped by 15% to 510,200 tonnes from 598,000 tonnes in the prior year, due largely to geotechnical and processing challenges at Katanga, the sale of Ernest Henry in January, Collahuasi mine sequencing and lower copper units produced within Glencore's zinc business.
Zinc production declined by 17% to 480,700 tonnes from 581,800 tonnes.
In precious metals, gold output fell by 21% to 334,000 ounces from 423,000 ounces, and silver also decreased by 21% to 12,579 ounces from 15,984 ounces.
The Baar, Switzerland-based commodity trader and miner said this poor performance was offset by improved cobalt, nickel and ferrochrome output levels and the additional contribution from the Cerrejon coal mine joint venture in Colombia.
Last year, Glencore acquired two-thirds of the Cerrejon joint venture from BHP PLC and Anglo American PLC for USD588 million.
Nickel production over six months was up 21% at 57,800 tonnes from 47,700 tonnes. Ferrochrome production rose marginally by 2% to 786,000 tonnes from 773,000 tonnes.
Coal production increased by 14% to 55.4 million tonnes from 48.7 million tonnes.
Entitlement interest oil production of 3.1 million barrels of oil equivalent was 22% higher than 2.5 million barrels of oil equivalent in the first half last year, due to commencement of the gas phase of the Alen project in Equatorial Guinea from March 2021.
The group stuck to its full-year production guidance, with the exception of copper.
Glencore Chief Executive Gary Nagle said the company's annual production guidance remained unchanged with the exception of copper, where the ongoing geotechnical constraints at Katanga's open pit and continued management of higher levels of acid-consuming ore.
Copper production guidance is revised down to 1.06 million tonnes from 1.11 million tonnes previously. In 2021, copper production was at 1.19 million tonnes.
The annual nickel output estimate is kept at 118,000 tonnes, up from 102,000 tonnes in 2021, while zinc is projected to drop to 1.01 million tonnes from 1.11 million tonnes last year.
Coal production is expected to increase to 121 million tonnes from 103million tonnes.
Glencore expects half-year financial results on August 4.
Its shares were 0.4% lower at 447.75 pence each in London on Friday morning. In Johannesburg, the stock was down 0.4% at ZAR89.90.
By Artwell Dlamini; [email protected]
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