While the company announced improved third quarter production across its operations, the changes in guidance reflect the tightening of most profit margins and coal production being 5mt (4%) down as a resulting from extension of the two-month industrial strike at Cerrejón.
As Glencore’s year-to-date coal production fell by 20% at 83.5 million tonnes, influenced by the strike, the miner decreased its full-year output guidance from 114 million tonnes to 109 million tonnes.
Glencore CEO Ivan Glasenberg said: “We maintain our 2020 full year production guidance, except coal, which was adjusted for the extended strike at Cerrejón. We will provide a detailed business update, including progress on climate change initiatives at our Investor Update on 4 December.”
As a result, Glencore’s London-listed shares dropped by 2.4% at 08:04 GMT on 30 October.
The generally strong sequential quarterly production of Glencore’s performance was largely impacted by reversal of short-term Covid-19-related shutdowns in Q2, as mandated by national and local governments. For this reason, copper production grew by 17.6% from the previous quarter.
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“Glencore has delivered a solid third quarter operating performance, including the continued successful ramp-up of Katanga, which remains on track to achieve design capacity by year end. Our teams have adapted well to the numerous challenges presented by Covid-19,” Glasenberg said.
The miner’s own-sourced copper production of 934,700 tonnes was 8% lower than the comparable prior period, reflecting Mutanda mine in the Democratic Republic of Congo being on care and maintenance. In addition, there was a temporary suspension of operations at Antamina during Q2, partly caused by a continued strong milling performance at Collahuasi and Katanga’s ramp-up.