Glencore leaves forecasts unchanged despite production dip

Glencore said on Friday it remained on track to exceed earnings forecasts, despite a dip in first-quarter production, thanks to strong trading profits.

Copper production fell 5% to 244,100 tonnes in the three months to March end, due to planned lower grades and delays caused by bad weather. Glencore left its 2023 guidance for copper production unchanged, however, at 1.04m tonnes.

Zinc fell 15% at 205,300 tonnes, while nickel production was 16% lower at 39,300 tonnes.

However, Glencore - which last month made a $22.5bn tilt at Canada’s Teck Resources - also has a trading division that includes oil and LNG as well as metals, and it performed well during the quarter, the firm noted, boosted by energy products.

Chief executive Gary Nagle said: "First quarter production was broadly in line with our expectations, accounting for portfolio changes and operational conditions, including the disposals/closures of some zinc and lead mines in the Americas during 2022.

"Full year production library guidance is unchanged.

"Our marketing segment continued to perform well through the first quarter. Extrapolating marketing adjusted earnings before interest and tax has us, once again, on track to exceed the top end of our $2.2bn to $3.2bn per annum long-term guidance range."