Glencore is shaping up to welcome top-end profits for 2024 as it boosts production across its operations.
Copper production grew two per cent in in the March quarter from the same period in 2023, with a total 239,700 tonnes (t) sourced.
The Federal Government’s ‘Resources and Energy Quarterly’ (REQ) for March 2024 expects copper demand to increase with clean energy technologies a main driver of growth.
A jump in copper prices has created favourable conditions for Glencore’s copper increase. Three-month copper has been hovering around $US10,000 in recent days – highs not seen for two years.
In 2023, Glencore acquired the remaining 56 per cent of the Argentinian MARA copper project, as well as locking in the New Range copper-nickel joint venture with Teck Resources in Minnesota, US.
The additions, along with a near doubling of the El Pachon resource in Chile, added more than five billion tonnes to its copper resource inventory for the year.
Zinc and coal production was broadly in line with the same period in 2023, while nickel increased 14 per cent.
Glencore’s 23,800t nickel production was 2900t higher than the 2023 March quarter thanks to recovery from the company’s integrated nickel operations (INO) supply chain constraints.
When it came to Glencore’s outlook for the year ahead, chief executive officer Gary Nagle is optimistic the company is on its way to reaching the top end of its guidance.
“Our full year production guidance remains unchanged from that presented at the beginning of the year,” Nagle said.
“We currently expect full year marketing adjusted earnings before interest and tax (EBIT) in the $3–3.5 billion range, being around the top end of our long-term $2.2–3.2 billion per annum guidance range, reflecting cyclically elevated interest rates.”