Glencore PLC (LSE:GLEN) announced that its nickel production will be lower than anticipated this year as maintenance outages and strikes that took place in 2022 still weigh in.
Third-quarter production figures showed that the effects of last year’s strike at the Raglan mine in Canada were still being felt, Glencore said in an update on Monday.
The FTSE 100-listed firm said lower-than-anticipated output from the Koniambo mine in New Caledonia also weighed in, alongside maintenance outages at its Canada-based Sudbury smelter, prompting lower expectations for the year.
Glencore produced 68,400 tonnes of nickel over the first nine months of the year, down 16% on the same period in 2022.
The miner now expects to produce in the region of 102,000 tonnes over the full year, compared to previous guidance of around 112,000 tonnes, as a result.
Guidance for copper, zinc and cobalt production was held, with output of each having slipped by 5%, 4% and 2% respectively over the year.
Coal production guidance also remained unchanged at roughly 110,000 tonnes, as output climbed by 2% to 83,900 tonnes over the first nine months of the year.
Liberum analysts continue to back Glencore following the statement, noting the firm’s confidence in achieving adjusted pre-tax earnings at the top end of a US$2.2 to US$3.2 billion range.
Lower numbers from Koniambo were “not all that surprising given that they want to exit the operation”, the bank said, with recent volatile energy markets also likely positive news for the firm.