Glencore production mixed in third quarter

Glencore reported on Friday that its own-sourced copper production totalled 1,015,800 tonnes for the third quarter, which was was 47,300 tonnes, or 4%, lower than the comparable prior period.

The FTSE 100 firm said that primarily reflected Mutanda's re-optimised 100,000 tonnes per annum plan, from 200,000 tonnes, which impacted the current period by 67,000 tonnes.

It also put the fall down to Mopani's smelter closure for extensive refurbishment, which affected 21,600 tonnes of metal, and the disposal and depletion of two South American assets in the base period, which affected 20,200 tonnes, partly offset by Katanga's ramp-up, which brought 66,500 tonnes to the table.

Glencore’s own sourced cobalt production was 34,400 tonnes for the period, which was 5,900 tonnes, or 21%, higher than the comparable period, which the board said primarily reflected Katanga's ramp-up.

Own sourced zinc production was 809,200 tonnes, which was 23,100 tonnes - or 3% - higher than the comparable prior period.

“[That] mainly reflects the contribution of Lady Loretta mine at Mount Isa, and stronger production at McArthur River, partly offset by lower production from Antamina, an expected temporary transition to lower zinc-bearing areas of the mine, and a reduction at Kazzinc, mainly related to ground stability issues at Tishinsky mine,” the Glencore board explained in its statement.

Its own sourced nickel production of 89,400 tonnes was 2% lower than the comparable period, mainly relating to Koniambo, which experienced a “challenging” first half ramp-up period.

Attributable ferrochrome production of 1,030,000 tonnes was 115,000 tonnes, or 10%, lower than the comparable prior period, which the board put down to additional maintenance days undertaken in the third quarter.

Coal production totalled 104.0 million tonnes, which was 7.3 million tonnes - or 8% - higher than the comparable prior period.

“[This] mainly reflects the full year effect of the HVO and Hail Creek acquisitions in 2018, and higher production at Prodeco following its increased mine development in 2018, partly offset by lower production from Cerrejón, due to dust constraints,” the board explained.

Entitlement interest oil production of 3.6 million barrels was 0.3 million barrels, or 8%, higher than the comparable prior period.

The Glencore board put that down to increases in Chad associated with the ongoing drilling campaign, and first oil from the Bolongo block in Cameroon, partly offset by natural declines in Equatorial Guinea.

As at 0929 BST, shares in Glencore were down 0.77% at 230.55p.