Glencore operating profits estimated to hit $3.2bn

Glencore shares were up 2.3% to 475p in late morning trading on Friday after the mining giant announced that its operating profit for its trading division was set to exceed $3.2 billion, hitting the top end of its FY 2022 guidance.

The revised profit expectations were sparked by surging prices on the back of supply disruptions, with the price of products such as thermal coal spiking as market volatility sends costs through the roof.

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Glencore added that it had revised its thermal coal benchmark from $32.8 per tonne to between $82 to $86 for the financial year.

The mining firm said its expected its average FOC thermal cost unit for HY1 to hit $75 to $78 per tonnes from $59.3 as a result of inflationary pressures linked to soaring diesel and electricity costs.

Glencore mentioned it expected more normal market conditions in HY2 2022.

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