Glencore PLC (LSE:GLEN) hit big mining stocks on Friday with news that it has reduced output of several industrial and precious metals over the first nine months of 2022.
But despite lower production in some areas of the business, FTSE 100-listed mining group said it expects underlying earnings (EBIT) from its trading unit to reach US$1.6bn in the second half of the year – putting the company on track for record annual performance.
The Swiss-based giant explained that the falls in mining output were due to factors ranging from the war in Ukraine to strikes in Canada and Norway and poor weather in New South Wales.
In comparison to 2021, the company said that copper production had diminished by 14% in the year-to-date to reach 770.5kt, alongside an 18% reduction in zinc output to 699.6kt.
The latter was the result of "emerging supply-chain issues in Kazhakstan."
Glencore also lowered its guidance for zinc output by 65kt and for lead production by 21% to 136.9kt.
Output of gold fell by 15% to 593kt and that of silver by 25% to 17,88kt, the group said.
On the upside production of cobalt rose by 41% to 33.1kt, coal by 7% to 81.9mt and oil by 16% to 4.82m barrels of oil equivalent.
But Glencore cut coal production guidance for 2022 by 11mt due to the flooding in New South Wales and delays in restoring operations.
Glencore also cautioned that the La Niña weather phenomenon was expected to further disrupt coal operations in the fourth quarter.
Shares in Glencore fell 3.25% dragging others in the sector lower such as Rio Tinto PLC, down 3.2% and Anglo American PLC (LSE:AAL) down 2.7%.