Posted By Uma Rajagopal
Posted on October 30, 2024
LONDON (Reuters) -Glencore on Wednesday reported lower copper, cobalt, zinc, nickel and thermal coal production for the first nine months, but reiterated that it expects its trading profit to reach the high-end of its long-term range at up to $3.5 billion.
The miner and trader’s own sourced copper production fell 4% to 705,200 metric tons, while its own sourced cobalt output fell 18% to 26,500 tons.
Glencore left its overall 2024 outlook for copper, a metal needed for energy transition applications, unchanged at between 950,000 and 1.01 million tons.
Its trading division, whose profit hit a record $6.4 billion in 2022, includes coal, oil, liquefied natural gas and related products, as well as metals.
Glencore expects its full-year marketing earnings before interest and tax (EBIT) in the $3 billion-$3.5 billion range, around the top-end of the firm’s long-term forecast range of $2.2 billion to $3.2 billion.
The miner has kept its coal business after concluding the purchase of Teck Resources’ coking coal assets and securing backing from a majority of its investors who see lucrative earnings from the fossil fuel.
CEO Gary Nagle in August said the company could acquire more steelmaking coal.
It is one of the largest producers and exporters of thermal coal, with an expected output of between 98 million and 106 million tons this year. It produced 73.1 million tons so far, 7% lower than year-ago levels.
Its 2024 steelmaking coal production should increase to 19 million-21 million tons post-acquisition, from 7 million-9 million tons.
(Reporting by Clara Denina; Editing by Jason Neely and Sherry Jacob-Phillips)
