Glencore Shares Rose 1.41% Despite Mixed Q3 Production Report

The Glencore PLC (LON: GLEN) share price rose 1.41% after releasing its Q3 2023 production report, where it slashed its Nickel production target for the year significantly. The global mining company also reported declining copper production during the quarter.

Own-sourced copper production amounted to 735,800 tonnes. This figure reflects a decrease of 34,700 tonnes, which is approximately 5% lower compared to the same period in 2022. The decline can be attributed to the sale of Cobar in June 2023 and reduced copper by-product production outside the Copper department.

Own-sourced cobalt production remained stable, with 32,500 tonnes produced during this period, in line with the comparable 2022 period. Own-sourced zinc production reached 672,100 tonnes. However, this figure represents a decrease of 27,500 tonnes, equivalent to a 4% reduction compared to the same period in 2022.

The decline primarily results from the 2022 disposals of South American zinc operations (23,600 tonnes) and the closure of Matagami (17,300 tonnes). This reduction was partially offset by more robust production from Kazzinc (Zhairem) and Antamina.

Own-sourced nickel production amounted to 68,400 tonnes. This number indicates a notable decrease of 13,200 tonnes, approximately 16% lower compared to the same period in 2022. This decline is primarily due to higher third-party production at INO, necessitated mainly by a strike at the Raglan mine in 2022.

Attributable ferrochrome production stood at 873,000 tonnes. However, this figure reflects a significant decrease of 237,000 tonnes, marking a 21% decline compared to the same period in 2022. 

Coal production for this period reached 83.9 million tonnes, which remained relatively stable and in line with the production in the comparable 2022 period. The company lowered its production guidance for ferrochrome and nickel for the entire year. 

Gary Nagle, Glencore’s CEO, said: “We are pleased to report a solid production performance from our underlying base business over the first nine months of the year, where our key copper, coal and zinc assets performed in line with expectations and previously communicated guidance. Full-year 2023 production guidance for copper, zinc, coal and cobalt remains in line with previous guidance; however, nickel has been reduced to reflect, within the INO business, maintenance outages at the Sudbury smelter and a longer-than-expected recovery from the 2022 strike action, together with a lower full-year revision for Koniambo.”

Glencore share price. 

The Glencore share price rose 1.41% to trade at 450.88p from Friday’s closing price of 444.63p.