Glencore Backs 2022 Production Guidance After In-Line 2021 -- Update

By Jaime Llinares Taboada

Glencore PLC on Wednesday reaffirmed guidance for 2022, and said that its operations in 2021 performed in line with expectations.

The Anglo-Swiss commodity mining and trading company said guidance for this year remains unchanged from the investor update in December.

Glencore said its copper production fell 5% to 1.20 million metric tons last year, in line with expectations, reflecting the disposal of the Mopani mines in Zambia, weaker grades at Antapaccay in Peru and lower copper by-products from zinc and nickel mines.

Production of cobalt rose 14% to 31,300 tons, but missed guidance of 32,000-38,000 tons. Zinc was down 4% at 1.12 million tons, also missing the 1.14 million-1.20 million tons guidance. Nickel declined 7% to 102,300 tons, while ferrochrome increased 43% to 1.47 million tons, slightly above the top end of the 1.40 million-1.46 million tons guidance.

Coal output dropped 3% to 103.3 million tons, reflecting the care and maintenance status of the Prodeco business in Colombia, and both lower demand and rail capacity constraints in South Africa.

"Overall, our operations largely performed in line with guidance expectations," Chief Executive Gary Nagle said.

Citigroup said in a note that Glencore's fourth-quarter production was broadly in line with expectations, and forecast that the company's marketing arm will deliver strong earnings before interest and tax for 2021. "Our estimate at $3.3 billion appears conservative," the bank said.

Write to Jaime Llinares Taboada at [e-mail]; @JaimeLlinaresT

(END) Dow Jones Newswires

February 02, 2022 03:13 ET (08:13 GMT)

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