Glencore first-quarter copper output jumps 19%, marketing unit set to exceed target
Glencore's Q1 Performance and Market Outlook
Strong Growth in Copper Production
LONDON, April 30 (Reuters) - Glencore said on Thursday its first‑quarter copper production rose 19%, benefiting from improved ore grades in Africa, while its marketing division remains on track to exceed the top end of its annual earnings guidance.
The Swiss-based commodities trader and miner produced 199,600 metric tons of copper in the first quarter, up from 167,900 tons a year earlier, driven by better grades at its African operations and higher output at its Antamina mine in Peru.
Decline in Cobalt Output
Cobalt production fell 39% in the quarter as Glencore prioritised copper output at its assets in the Democratic Republic of Congo because of export quota restrictions, the company said in a statement.
Market Demand for Copper and Cobalt
Copper demand has been climbing as the metal is widely used in electric vehicles, charging infrastructure and power grids. Cobalt is a key ingredient in lithium-ion batteries that power EVs and consumer electronics.
Operational Guidance and Challenges
Glencore maintained its 2026 production guidance for its resources despite operational challenges and the closure of two Australian mines that reached the end of their economic lives.
Impact of Global Events and Cost Pressures
Chief Executive Gary Nagle said the Iran war had limited impact on operations in the first quarter, but cost pressures were emerging from higher diesel and sulphuric acid prices.
Commodity Prices and Margin Expansion
Stronger commodity prices, however, would more than offset those pressures and help expand margins, he said.
Marketing Division Outlook
Its full-year earnings before interest and tax guidance range for the marketing business stands at $2.3 billion to $3.5 billion per year.
(Reporting by Clara Denina, Editing by Louise Heavens)
