Glencore PLC (LSE:GLEN) raised its profit forecast for the current year and said it expects underlying profit (adjusted EBIT) to exceed its US$2.2bn-US$3.2bn a year long-term guidance range.
The commodity trading and mining company said its asset base has performed in line with expectations and full-year production guidance remains unchanged.
In the third quarter, the company’s own sourced copper production totalled 895,500 tonnes, down 4% on the same period in 2020, reflecting lower mined grades at various operations. Forecast copper production for 2021 is 1.22mln tonnes.
Own sourced zinc production of 855,800 tonnes was in line with a year earlier, as recovery from 2020 Coronavirus (COVID-19) restrictions was offset by temporarily lower Kazzinc production pending the ramp-up of the recently commissioned Zhairem mine. Glencore estimates full-year production will reach 1.17mln tonnes.
Own sourced nickel production declined 13% to 71,100 tonnes due to planned maintenance at Murrin Murrin and various operating issues at Koniambo. The forecast for 2021 is 105,000 tonnes.
Meanwhile, attributable ferrochrome production grew by 65% to 1.07mln tonnes, reflecting the suspension of operations in the second quarter last year due to the South African national lockdown. The group is forecasting full-year output at 1.43mln tonnes.
Glencore said coal production fell 9% to 76.3mln tonnes as a result of maintenance, the progressive recovery from the market-related reductions across the Australian portfolio and lower domestic production and demand in South Africa. The group expects full-year production to be 104mln tonnes.
Entitlement interest oil production rose by 23% to 4.1mln barrels of oil equivalent (boe) following the start of the gas phase of a project in Equatorial Guinea in February and a full period contribution from the new Cameroon well. The Chad fields remained on care and maintenance throughout 2021, Glencore said.
The group expects the US$242mln sale of its wholly owned subsidiary Chemoil Terminals LLC to be completed before the end of the year. The disposal of its Bolivian zinc assets, Sinchi Wayra and Illapa, to Santa-cruz Silver Mining Ltd for US$110mln is set to be finalised within the next three months.
Commenting on the relinquishment of Prodeco's key mining contracts back to the Republic of Colombia, Glencore said the mines will remain on care and maintenance until the formal process of relinquishing the contracts is complete.
Shares were largely unchanged at 359.55p midmorning.