Glencore raises full year guidance despite weather impact on Q1

Glencore raised its full year profits target slightly to $2.3bn to $2.6bn despite production in the first quarter being impacted by severe weather such as cyclone Debbie in Australia.

Earnings before interest and tax guidance at the mining and trading group was lifted from $2.2bn to $2.5bn.

Copper production from Glencore's own sources was 3% lower at 324,100 tonnes reflecting grade variations at Alumbrera, the zinc/copper mix at Antamina in Peru as its mine plan progresses and ore handling difficulties at Mutanda due to heavy rain.

These were partly offset by an increase in own sourced production from North Queensland.

Own-sourced zinc production of 279,200 tonnes was up 9% quarter on quarter, mainly reflecting the mine plan sequencing at Antamina.

“Modest production increases in the rest of the portfolio were within expected ranges. There are currently no plans to restart idled capacity in Australia and Peru,” Glencore said.

Own-sourced nickel production of 24,900 tonnes was down 10% on Q1 2016, reflecting maintenance at Murrin Murrin and Nikkelverk, partly offset by the ramp-up at Koniambo.

Coal production for the period rose 4% to 30.9m, reflecting stronger coking coal production, with the base period impacted by “geological challenges”, and planned ramp-ups within the Australian thermal portfolio.

Glencore's oil entitlement interest of 1.4m barrels was down 43%, reflecting ongoing depletion. A single-rig drilling campaign will re-commence in Chad in the second half of the year, Glencore added.