TOP NEWS: Glencore Reports Mixed 2020 Output As Gold Up, Copper Down

(Alliance News) - Glencore PLC on Wednesday reported a mixed production performance for 2020, ...

Alliance News 3 February, 2021 | 8:27AM
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(Alliance News) - Glencore PLC on Wednesday reported a mixed production performance for 2020, with a rise in gold, silver and zinc, but a decline in copper, cobalt and coal.

The Swiss commodities trader said for the year, own-sourced copper output was down 8% year-on-year at 1.26 million tonnes from 1.37 million tonnes, as the Mutanda mine in the Democratic Republic of the Congo remained on care and maintenance.

Glencore has guided for 2021 copper production to be around 1.22 million tonnes.

Cobalt output fell by 41% to 27,400 tonnes, also due to the Mutanda mine being on care and maintenance. Looking ahead, 2021 cobalt production is expected to rise to around 35,000 tonnes, as Katanga cobalt production continues to ramp up.

Zinc production rose by 9% to 1.17 million tonnes, driven by higher zinc content from Antamina in Peru and improved output from Glencore's operations in Mount Isa. For 2021, zinc is set to rise to around 1.25 million tonnes, due to the commissioning of the Zhairem project in Kazakhstan.

Nickel output dropped by 9% year-on-year to 110,200 tonnes, due to the Koniambo mine having to operate as a single-line operation for the most of 2020, as Covid-19 related travel restrictions affecting its maintenance schedule. For 2021, nickel is expected to dip to 117,000 tonnes.

Gold production rose by 3% to 916,000 ounces from 886,000 ounces the year before, while silver edged up by 2% to 32.77 million ounces from 32.02 million ounces.

Total coal production for 2020 was down 24% at 106.2 million tonnes from 139.5 million tonnes, due to stopped or reduced work in Colombia and South Africa, as well as extended care and maintenance at Prodeco.

Glencore has guided for coal production in 2021 to rise to around 113 million tonnes, due to cautious coal supply rises in Australia.

"Our mining assets performed well in difficult circumstances during 2020. Various precautionary operating changes made in the second quarter continued into the second half, with sustainable and safe working practices embedded for the pandemic era. Production picked up accordingly, with year-over-year increases in zinc, gold and silver production," said Chief Executive Officer Ivan Glasenberg.

Shares in Glencore were down 0.2% at 246.25 pence on Wednesday in London, while its Johannesburg shares were up 0.2% at ZAR50.29.

By Dayo Laniyan;

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Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Glencore PLC 369.90 GBX -0.54

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