Glencore Reports Mixed 2020 Production Results -- Commodity Comment

By Ian Walker

FTSE 100 Anglo-Swiss mining company Glencore PLC on Wednesday reported mixed production results for 2020, and backed its 2021 forecasts.

On copper, cobalt production:

"Excluding Mutanda (currently on care and maintenance), 2020 copper production was in line with 2019, while cobalt production was 6,200 tons higher, reflecting Katanga's continued successful ramp-up to design capacity levels."

"Own sourced cobalt production of 27,400 tons was 18,900 tons (41%) lower than 2019, mainly reflecting Mutanda on care and maintenance."

On zinc production:

"Own sourced zinc production of 1.2 million tons was 92,900 tons (9%) higher than 2019, mainly reflecting: (i) higher zinc content from Antamina (40,000 tons); (ii) improved output from the Mount Isa operations (27,800 tons); and (iii) the net positive effect of 18,700 tons from Other South America, owing to restarting the short-life Iscaycruz mine in Peru, offset by Covid-related suspensions and shutdowns."

On nickel production:

"Own sourced nickel production of 110,200 tons was 10,400 tons (9%) lower than 2019, reflecting Koniambo operating as a single-line operation for the majority of 2020, with Covid-related mobility restrictions affecting its maintenance schedule."

On coal production:

"Coal production of 106.2 million tons was 33.3 million tons (24%) lower than in 2019, reflecting the impacts of the pandemic via stopped or reduced work in Colombia and South Africa, extended care and maintenance at Prodeco, plus market-related supply reductions in Australia in H2 2020."

On 2021 guidance:

"FY 2021 guidance as per our investor presentation in December 2020 is still current."

Shares at 0855 GMT were down 2.3 pence, or 0.9%, at 244.55 pence.

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(END) Dow Jones Newswires

February 03, 2021 04:17 ET (09:17 GMT)

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