Glencore tightens guidance as production falls in line with targets

With only three months of the financial year remaining, the commodities giant upgraded the lower end of range its guidance for marketing earnings before interest and tax (EBIT) by $100m to $2.5-2.7bn.

Production for the nine months of the year to date was said to in line with expectations, including the effect of previously announced mine suspensions or supply reductions in coal, oil, copper and zinc, with nickel higher.

Copper production was down 6% to 1.06m tonnes on the third quarter last year as lower African volumes were partly offset by higher grades and throughput in South America.

Zinc was down 30% to 789,000 tonnes on volume reductions across our portfolio, principally in Australia and Peru.

Nickel production was up 20% to 82,400 tonnes, relfecting maintenance at the Sudbury smelter last year.

Coal production was down 11% to 91.9m tonnes after the Optimum Coal sale, closures of several mines in South Africa and bad weather in Colombia.

Oil production was down 25% to 6.0m barrels from the natural depletion of its existing fields, as management holds investment in drilling to preserve cash for a stronger oil price environment.