Glencore cuts 2022 copper, zinc and cobalt output guidance

Miner and trader Glencore lowered its 2022 copper, zinc and cobalt production targets, as operational challenges and COVID-19-related conditions in the first quarter reduced output of some metals .

However, the company raised its production forecasts for nickel and ferrochromium and said it expects full-year earnings before interest and taxes (EBIT) to "easily exceed $3.2 billion, at the top of long-term annual guidance and at the bottom of $2.2 billion.

Prices for many metals mined by Glencore remain near record highs for 2021, reflecting supply shortages during the coronavirus-related lockdown and the impact of the escalating conflict between Russia and Ukraine.

For the quarter ended March, the company reported a 14% drop in copper production to 257,800 tonnes and a 15% drop in zinc production to 241,500 tonnes, mainly due to delays at its Zhairem operation in Kazakhstan.

Gary Nagle, the company's chief executive, said in a statement: "The full-year guidance has lowered copper and cobalt forecasts, but raised nickel and ferrochromium forecasts, and the Zhairem mine's slower-than-expected expansion has led to full-year zinc. The production target is lowered by 9%."

Glencore and global miners including Anglo American and BHP Group have warned about future production targets, in part due to labor shortages caused by the pandemic.

Thermal coal production rose 16 percent to 28.5 million tonnes in the first quarter, the company said.