Glencore PLC (LON:GLEN) have seen a steady performance across 2019 as the firm reported their findings on Tuesday morning.
Glencore have seen a mixed year, and have been making news headlines following an investigation from the Serious Fraud Office a few weeks back.
Today, the firm gave an update on production saying that they saw higher production from zinc, cobalt and coal operations.
However, copper, gold, silver and nickel performance was stunted in what seems to be a mixed annual update.
Copper production fell 6% giving a total of 1.37 million tones, the firm said that this was caused by the scaling down and and placement into temporary care and maintenance of Mutanda in the Democratic Republic of the Congo, as well as Mopani’s extensive smelter refurbishment shutdown in Zambia.
However, the performance of the Katanga mine in Congo was something to note for shareholders as this allowed cobalt output to surge 10% to 46,300 tonnes.
In zinc mining operations, production was slightly up by 1% to 1.08 million tonnes, as gains in Australia and Peru accounted for slowdowns in Kazakhstan for safety reasons and at Antamina in Peru due to mine rescheduling.
Nickel production was down 3% at 120,600 tonnes, as the firm alluded to maintenance stoppages at Koniambo in New Caledonia as the main result for slumping production.
One of the best performers was in the coal department, as this rose 8% giving a total of 139.5 million tonnes.
Coal production rose following new acquisitions in 2018 which were Hunter Valley Operations and Hail Creek in Australia. Within this, thermal coal output was up 5% to 123.9 million tonnes, and coking coal up 23% to 9.2 million tonnes.
Finally, entitlement interest oil production of 5.5 million barrels was 0.9 million barrels (19%) higher than in 2018, reflecting the benefits of the drilling campaign in Chad and first oil from the Bolongo field in Cameroon.
Glencore announce new Non Executive Director
In an update today, Glencore also updated shareholders about the appointment of a new Independent Non-Executive Director.
The firm said that Kalidas Madhavpeddi will be assuming the new position with immediate effect.
Madhavpeddi has over 30 years of experience in the international mining industry, including being CEO of China Molybdenum International (China Moly) from 2008 to 2018.
Tony Hayward, Chairman, stated:
“The Directors are extremely pleased to welcome Kalidas Madhavpeddi to our Board. Kalidas has extensive knowledge of the resources industry coupled with business experience across all continents, including over 10 years as the CEO of China Moly. His experience includes substantial involvement in operations and business dealings with both Phelps Dodge and China Moly in the Democratic Republic of the Congo. We look forward to benefitting from his experience and insights.”
Glencore’s bribery investigation
In December, it was reported that the Serious Fraud Office had commenced an investigation into Glencore following bribery allegations.
As a result, the firm saw their shares dive 8.5% on December 5th.
In a statement to the stock market, the company said: “Glencore has been notified today that the Serious Fraud Office has opened an investigation into suspicions of bribery in the conduct of business of the Glencore group.”
The SFO said: “The SFO confirms it is investigating suspicions of bribery in the conduct of business by the Glencore group of companies, its officials, employees, agents and associated persons.
Certainly, Glencore have had a turbulent year as the firm has been placed in bad media spotlight following a couple of encounters with the SFO.
Glencore will hope that 2020 will be a year of positive media image, growth and rebuilding.
Shares in Glencore trade at 231p (+4.45%). 4/2/20 10:58BST.
