Final hours! Save up to 50% OFF InvestingProCLAIM SALE

UPDATE 1-Glencore lowers 2017 output targets after first half dip

Published 2017-07-27, 04:47 a/m
© Reuters.  UPDATE 1-Glencore lowers 2017 output targets after first half dip
HG
-
FTNMX551030
-
GLEN
-
TV
-

(Adds detail)

JOHANNESBURG, July 27 (Reuters) - Glencore cut its 2017 output targets on Thursday after changes in what it extracts at some of its mines, rainfall and maintenance hit production in the first half of the year.

The global miner and trader said copper output for the six months fell 9 percent and nickel was down 10 percent, while zinc production jumped 13 percent and coal rose 4 percent.

At its Antamina mine in Peru, Glencore GLEN.L shifted its focus to ore containing a combination of copper and zinc instead of purely copper which led to a rise in zinc while copper fell.

Glencore said it was lowering its full-year production guidance for copper, lead, ferrochrome, nickel and coal.

And despite a rise in output, its forecast for zinc production was cut to around 1.13 million for the year because it expects to complete the sale of two mines to Trevali Mining TV.TO in the third quarter.

A decision by Glencore to shut some zinc capacity pushed prices on the London Metal Exchange CMZN3 up 60 percent in 2016, making it the best performing metal that year.

Glencore raised its marketing earnings before interest and tax (EBIT) guidance for the year to between $2.4-$2.7 billion after including its industrial agriculture arm.

Investec and Bernstein analysts said Glencore's production figures fell slightly short of expectations.

"Overall, we see today's results as slightly negative," Bernstein analysts said in a note.

"However, despite the continuing weakness in the second quarter and production guidance cut we remain positive in the long-term."

Glencore's shares were slightly weaker at 0832 GMT, while the wider sector .FTNMX1770 rose by nearly 1 percent.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.