Glencore shares were up 1.9% to 489.2p in late afternoon trading on Thursday, following a mixed bag of results from its Q1 2022 production report.
The mining group decreased its full year guidance for copper, zinc and cobalt, while boosting its expectations for nickel and ferrochrome.
“Reflecting the Q1 production performance, full-year guidance is reduced for copper and cobalt, but increased for nickel and ferrochrome, while the slower than expected ramp-up at Zhairem reduces full-year zinc production guidance by 9%,” said Glencore CEO Gary Nagle.
Copper production fell 14% to 257.8kt compared to 301.2kt year-on-year as a result of short-term geotechnical constraints at its Katanga operation, a basis change from its sale of Ernest Henry in January 2022 and lower copper production units produced within the company’s zinc business.
Glencore reported a 15% decline in zinc to 241.5kt from 282.6kt, due to Mout Isa Covid-19-related absences and a scheduled close for mining operations at Iscaycruz in Peru over Q3 2021.
The company also experienced a 15% drop in lead to 46.8kt against 55.3kt.
Gold production took a hit of 16% to 189koz from 224koz, alongside a 16% drop in silver to 6,515koz against 7,761koz and a 3% fall in ferrochrome to 387kt from 399kt.
Glencore reported a nickel output of 30.7kt compared to 25.2kt in Q1 2021 on the back on its Konimabo project working both production lines during 2022.
The mining group additionally noted a 43% increase in cobalt to 9.7kt against 6.8kt during the quarter in 2021.
“For the most part, the Group’s quarterly production was in line with our expectations,” said Nagle.
“However, production in Q1 2022 reflects a number of temporary impacts, including geotechnical challenges at Katanga and Covid-19 absenteeism, particularly in Australia.”
“Koniambo’s Q4 2021 higher operating rates continued into Q1 this year, while overall coal production, on a like-for-like basis, reflecting our increased Cerrejón ownership, was broadly flat period-on-period.”
