Commodity trader and miner on Monday cut its nickel production guidance for this year.
Own sourced nickel production of 68,400 tonnes was 13,200 tonnes (16%) lower than the comparable 2022 period, primarily reflecting higher INO third party production (versus own sourced), in large part necessitated by the strike at Raglan mine in 2022.
Attributable ferrochrome production of 873,000 tonnes was 237,000 tonnes (21%) lower than the comparable 2022 period, mainly due to planned additional smelter offline days during the 3-month high electricity demand winter season, a period of elevated power prices.
Own sourced copper production of 735,800 tonnes was 34,700 tonnes (5%) lower than the comparable 2022 period, reflecting the sale of Cobar in June 2023 and lower copper by-product production outside the Copper department.
Own sourced cobalt production of 32,500 tonnes was in line with the comparable 2022 period.
Own sourced zinc production of 672,100 tonnes was 27,500 tonnes (4%) lower than the comparable 2022 period, mainly reflecting the 2022 disposals of South American zinc operations (23,600 tonnes) and the closure of Matagami (17,300 tonnes), offset by stronger production from Kazzinc (Zhairem) and Antamina.
Coal production of 83.9 million tonnes was broadly in line with the comparable 2022 period.
Glencore Chief Executive Officer, Gary Nagle:
“We are pleased to report a solid production performance from our underlying base business over the first nine months of the year, where our key copper, coal and zinc assets performed in line with expectations and previously communicated guidance.
“Full year 2023 production guidance for copper, zinc, coal and cobalt remains in line with previous guidance, however nickel has been reduced to reflect, within the INO business, maintenance outages at the Sudbury smelter and a longer than expected recovery from 2022 strike action, together with a lower full-year revision for Koniambo. Ferrochrome production has also been marked lower, due to additional smelter off-line days on account of electricity pricing and load curtailments in South Africa, however chrome ore mining production is expected to only be modestly below 2022 levels.
“In our Marketing segment, we continue to expect a full year 2023 Adjusted EBIT outcome above the top end of our $2.2-3.2 billion p.a. long-term guidance range, with a likely outcome within the previously communicated $3.5-4.0 billion range.”
Glencore is one of the world’s largest global diversified natural resource companies and a major producer and marketer of more than 60 commodities that advance everyday life. Through a network of assets, customers and suppliers that spans the globe, Glencore produce, process, recycle, source, market and distribute the commodities that support decarbonisation while meeting the energy needs of today.
Glencore recognise the responsibility to contribute to the global effort to achieve the goals of the Paris Agreement by decarbonising their own operational footprint. Glencore believe that the company should take a holistic approach and have considered its commitment through the lens of its global industrial emissions. Against a 2019 baseline, Glencore is committed to reducing the company’s Scope 1, 2 and 3 industrial emissions by 15% by the end of 2026, 50% by the end of 2035 and the company have an ambition to achieve net zero industrial emissions by the end of 2050.