(Alliance News) - Glencore PLC on Friday reported a mixed bag of production results for the first half of 2021, with annual guidance lowered in a few areas.
Shares were down 2.2% in London at 322.15 pence, while in Johannesburg, they were down 2.6% at ZAR65.60.
The Baar, Switzerland-based miner and commodities trader said nickel production fell 14% year-on-year to 47,000 tonnes from 55,200 tonnes, while lead production was 8.5% lower at 117,000 tonnes from 127,900 tonnes.
Thermal coal production sunk 19% to 42.0 tonnes from 51.8 million tonnes a year ago.
On the other hand, silver production rose 13% to 16.0 million ounces from 14.2 million ounces, while ferrochrome output surged 66% to 773,000 tonnes from 466,000 tonnes.
"Our industrial operating assets continued to manage responsibly and effectively amid the health and logistical challenges presented by Covid-19, while, from a market perspective, we remain disciplined in a recovering, yet somewhat uncertain, global economic picture," Glencore Chief Executive Gary Nagle said.
Copper production rose 1.7% to 598,000 tonnes from 588,100 tonnes.
Cobalt production was up 3.5% to 14,800 tonnes from 14,300 tonnes.
Zinc production increased 5.8% to 581,800 tonnes from 550,100 tonnes.
Gold production grew 2.9% to 423,000 ounces from 411,000 ounces.
Nagle said: "In our key copper and zinc businesses, production met our first-half guidance, while planned coal and nickel volumes were impacted by a range of factors during the half. Prodeco's care and maintenance and market-driven Australian supply reductions since the second half of 2020 are mainly responsible for a 16% period-on-period decline in coal production. Nickel production was constrained by various operating issues at Koniambo, with a restart of its second production line currently expected in August."
The Koniambo mine is in New Caledonia in the south Pacific.
Glencore increased its annual ferrochrome guidance by 2.1% to 1.43 million tonnes from the previously guided 1.40 million tonnes.
However, the miner reduced its guidance for zinc, nickel and coal. Zinc guidance was pulled back by 6.4% to 1.17 million tonnes from 1.25 million tonnes, nickel was reduced 10% to 105,000 tonnes from 117,000 tonnes, and coal guidance was cut 8.0% to 104 million tonnes from 113 million tonnes.
"In the near-term we remain alert to the continuing challenges of Covid-19, and our operational teams remain focussed on operating safely and responsibly to create sustainable long-term value for all stakeholders," Nagle added.
Glencore's interim financial results are due next Thursday.
By Greg Roxburgh; gregroxburgh@alliancenews.com
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