Glencore Reaffirms Production Guidelines As Coal Production Recovers – Product Commentary


By Jaime Llinares Taboada


Glencore PLC on Friday raised forecasts for its marketing division and reaffirmed expectations for the mining sector. Here’s what the commodities giant had to say:


About mining:


“The asset base has performed largely according to our expectations and our production forecast for the entire year remains unchanged. In particular, as energy markets have improved, we are recovering from market-induced production cuts initiated in our Australian coal portfolio in 2H 2020. ”


“Own copper production of 895,500 [metric tons] was 39,200 tonnes (4%) below the comparable 2020 period, reflecting lower grades extracted in various operations. About half of this difference is linked to the drop in copper by-products in the assets of the department other than Copper. “


“Own zinc production of 855,800 tonnes was in line with the comparable 2020 period. The recovery from 2020 Covid restrictions was offset by temporarily lower Kazzinc production pending ramp-up of the Zhairem mine recently put into service. “


“Clean nickel production of 71,100 tonnes was 10,700 tonnes (13%) lower than the comparable period of 2020 due to scheduled maintenance at Murrin Murrin and various operational issues at Koniambo. “


“Attributable ferrochrome production of 1,071,000 tonnes was 420,000 tonnes (65%) higher than the comparable period of 2020, reflecting that operations were suspended for much of 2Q 2020 due to the South African national lockdown. , with a period of ramp-up thereafter. “


“Coal production of 76.3 million tonnes was 7.2 million tonnes (9%) lower than the comparable period of 2020, reflecting a full period of service and maintenance of Prodeco, the gradual recovery market-related reductions in the Australian portfolio initiated in 2H 2020 and lower production / domestic demand in South Africa. “


“Property rights oil production of 4.1 million barrels of oil equivalent (boe) was 0.8 million boe (23%) higher than the comparable period of 2020. This mainly reflects the gas phase a project in Equatorial Guinea which started in February 2021, and a contribution over a full period of the new Cameroon well. Chad’s fields remained in upkeep and maintenance throughout 2021. “


On marketing:


“Due to the continued strong performance of Basis Marketing, we now expect Adjusted EBIT for the year 2021 to exceed the upper end of our long-term forecast range of $ 2.2 billion to $ 3.2 billion per year. . “


Write to Jaime Llinares Taboada at [email protected]; @JaimeLlinaresT

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