Strong second half pushes Glencore to high end of 2023 guidance across the board

Production at Glencore (LSE: GLEN) reached the higher end and even exceeded guidance for nearly all products in 2023 thanks to a robust second half of the year.


Chief Executive Officer Gary Nagle stated, “Overall, 2023 production was in line with our earlier revised guidance, with stronger second half volumes delivered across our key commodities, including copper, zinc, nickel, and coal.” “The somewhat reduced department-managed production volumes for copper and zinc in comparison to 2022 are mostly due to the closure of the Cobar copper mine and several zinc operations in South America. Due to increased third-party output at INO (integrated nickel operations) and Murrin Murrin maintenance, nickel volumes decreased by 9%. Despite the various capacity limitations (weather, blockades, and logistics) that affected the base period, coal production increased by 3%.

Nagle continued by stating that adjusted EBIT is expected to reach US$3.5 billion by the corporation.

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Major commodity production performed quite well. 1.01 billion tons of copper were produced, exceeding expectations from the previous year. The amount of cobalt produced, 41.3 million tons, exceeded projections. The amount of zinc produced, at 919,000 tonnes, was within range but close to the lower end of projections. The output of nickel exceeded projections, totaling 98,000 tons. The output of ferrochrome was 1.2 million tonnes, which was close to the lower end of the guidance but not below it. The amount of coal produced was 114 million tonnes, nearly exceeding the recommended limit.

The output of copper decreased by 5%, cobalt by 6%, zinc by 2%, nickel by 9%, and ferrochrome by 22% in absolute terms. Output increased by only 3% for coal and 13% for gold in 2022.

900,000 to 950,000 tonnes of zinc, 80,000 to 90,000 tonnes of nickel, 1.1 million to 1.2 million tonnes of ferrochrome products, 105,000 to 115,000 tonnes of coal, and 950,000 to 1.01 million tonnes of copper were the full year projection for 2024.

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