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Highlights:
- Copper production decreased by 2% year-over-year to 242,600 metric tons.
- Cobalt output fell by 18% compared to the same period last year.
- Steelmaking coal production surged, bolstered by the acquisition of Elk Valley Resources.
Glencore PLC (LSE:GLEN) has reaffirmed its full-year production guidance despite reporting declines in output for several key commodities in the third quarter of 2024.
In its third-quarter production report, Glencore detailed a 2% decline in copper production, totaling 242,600 metric tons, compared to the same quarter in the previous year. Cobalt production experienced a more significant drop, decreasing by 18% year-over-year.
Conversely, the company's steelmaking coal output saw a substantial increase, rising to 7.7 million tons from 1.5 million tons in the prior year. This growth is primarily attributed to the integration of Elk Valley Resources, which Glencore acquired in July 2024.
Despite these mixed production results, Glencore has maintained its full-year production targets across its commodity portfolio. The company also expects its marketing division's earnings before interest and tax (EBIT) to be at the upper end of the $3.0 billion to $3.5 billion range for the year, indicating strong performance in its trading operations.
Chief Executive Officer Gary Nagle highlighted production improvements in African copper operations, Antapaccay, Kazzinc, Murrin Murrin, and Australian energy coal. He stated, "Based on Marketing's performance year to date, we continue to expect full-year Marketing Adjusted EBIT in the US$3.0-$3.5 billion range, being around the top end of our long-term $2.2-3.2 billion annual guidance range."
Glencore's decision to uphold its production guidance underscores its confidence in achieving its annual targets, despite the challenges faced in certain segments during the third quarter.
