Poor global weather impacts Glencore’s Q1 output

Poor global weather impacts Glencore’s Q1 output

Glencore (LSE:GLEN) has reported declines in copper and nickel production during the first quarter of 2017, attributing poor weather conditions in Australia, Peru and DR Congo to its reduced output.

Copper production dropped by 3% to 324,100 tonnes compared to the same quarter of 2016, reflecting grade variations at Alumbrera in Argentina and the zinc/copper mix at Antamina, Peru.

The Anglo-Swiss firm also ascribed ore handling difficulties at its Mutanda mine in DR Congo, as a result of heavy rain in the area, to the fall in copper output.

Nickel output declined 10% during Q1 to 24,900 tonnes as a result of maintenance work at its Murrin Murrin and Nikkelverk operations in Western Australia and Norway respectively.

However, coal production increased by 4% to 30.9 million tonnes, along with zinc output which reached 279,200 tonnes, rising 9% on the figure recorded in the corresponding quarter last year.

Despite the weather-related output decreases, Glencore made no changes to its production guidance for 2017, and raised its earnings guidance to a range between US$2.3-2.6 billion, up from a prior range of $2.2-2.5 billion.

@RGNonline