Glencore shares gained 2.1% to 458.9p in early morning trading on Friday, after the mining giant announced a mixed bag of production results in its HY1 2022 report.
The company highlighted a 40% growth in cobalt production to 20.7 kt from 14.8 kt, alongside a 21% rise in nickel to 57.8 kt compared to 47.7 kt year-on-year, reflecting Koniambo operating both production lines this year and Murrin stable operations compared to maintenance in the base period.
Glencore mentioned a 2% uptick in ferrochrome production to 786 kt against 773 kt on the back of consistent smelter performance, and a 14% growth in coal to 55.4 kt compared to 48.7 kt linked to higher attributable production from its Cerrejón acquisition in January 2022 of the remaining two-thirds of the operation.
However, the commodities firm also noted a 15% slide in copper production to 510.2 kt from 598 kt as a result of ongoing geotechnical constraints in Katanga, the basis change from the sale of Ernest Henry in January 2022, Collahuasi mine sequencing and lower copper units produced from the company’s zinc sector.
Glencore mentioned a 17% drop in zinc to 480 kt compared to 581.8 kt due to progressive reduction in its South American portfolio via disposals and closures, Covid-19 absences, sequence changes at Mount Isa and lower Antamina production.
The group also confirmed a 19% decrease in lead to 95.1 kt against 117 kt.
The company reported a 21% gold production decline to 334 koz against 423 kt and a 21% fall in silver to 12,579 koz compared to 15,984 koz in the previous year.
FY 2022 guidance
Glencore said its FY 2022 production guidance remained unchanged, with the exception of copper as a result of ongoing geotechnical constraints at Katanga.
“Our full year production guidance remains unchanged with the exception of copper, where the ongoing geotechnical constraints relating to Katanga’s open pit and continued management of higher levels of acid-consuming ore, largely account for the reduced guidance of 1,060kt (previously 1,110kt),” said Glencore CEO Gary Nagle.