Glencore PLC (LSE:GLEN) cut its full-year production guidance for copper, cobalt and zinc, the mining and trading giant said as it announced output for the first quarter.
While on the trading side, Glencore said its Marketing activities were supported during the quarter by tight physical market conditions and periods of extreme market volatility.
Based on its first-quarter performance, it expects Marketing’s full-year earnings to “comfortably” exceed the top end of its long-term adjusted EBIT guidance range of US$2.2-3.2bn a year.
Copper production from its own sources dropped 14% from the first quarter of 2021 due to temporary geotechnical constraints at its Katanga operation, the sale of Ernest Henry in January 2022 and lower copper units produced within Glencore's zinc business.
Its zinc output dropped 15% from the year-earlier quarter reflecting COVID-19 related absenteeism at Mount Isa in Australia and the planned end of mining at Iscaycruz last year.
"For the most part, the group's quarterly production was in line with our expectations,” said chief executive Gary Nagle. “However, production in Q1 2022 reflects a number of temporary impacts, including geotechnical challenges at Katanga and COVID-19 absenteeism, particularly in Australia.
"Reflecting the Q1 production performance, full-year guidance is reduced for copper and cobalt, but increased for nickel and ferrochrome, while the slower-than-expected ramp-up at Zhairem reduces full-year zinc production guidance by 9%,” he added.
Annual production guidance was reduced 3% for copper and 6% for cobalt due to the issues at Katanga, while nickel and ferrochrome output guidance were both lifted 3% following a strong first quarter.
Overall coal production, on a like-for-like basis, reflecting its increased Cerrejón ownership, was broadly flat quarter-on-quarter, it said.
The FTSE 100 group, which generates about 10-15% of underlying earnings through coal, is putting its climate transition report up for scrutiny at its annual meeting today.
READ: Glencore faces AGM defeat on climate progress plan
Diversified mining rivals BHP Ltd and Anglo American PLC (LSE:AAL) have also lowered production guidance for some commodities this year.
READ: BHP lowers copper production target after issues in Chile
READ: Anglo American shares fall on production guidance cut and rising costs