SMM News: under the unprecedented challenges brought by the COVID-19 epidemic to the mining industry, the diversified mining and marketing company Glencore (Glencore) announced strong overall operating results in the first half of the year.
"this reflects the ability and dedication of our team to adapt to these difficult conditions," said Ivan Glasenberg, CEO of Glencore.
"Glencore's marketing business looks good," UBS global research analysts said in a note on the company's "buy" rating. "
"We also think it is possible that Glencore will report first-half results in early August, which will bring a surprise."
Ivan Glasenberg said that as a responsible operator, the top priority for the London-and Johannesburg-listed company is to protect the health and safety of its employees and the communities in which it does business.
"although some of our business operations have been temporarily suspended in accordance with national and local guidelines, or where appropriate suspensions have been determined by our risk assessment, most of our assets are still operating relatively normally.
"I am particularly pleased to report the strong operating performance of Katanga and is expected to gradually achieve design capacity by the end of the year."
Glencore's marketing business also achieved strong counter-cyclical returns.
"very strong first-half results have enabled us to now raise our full-year earnings before interest and tax (Ebit) forecast for 2020 to the highest end of the guidance range of $2.2 billion to $3.2 billion.
"in the short term, we are alert to the continuing challenges posed by the epidemic. Although we expect operating cash flow to remain stable, we are ready to adapt to the changing market environment.
"although most of our assets can continue to operate until the second quarter with little disruption, due to the government's mandatory blockade, or if the risk assessment determines that such measures are taken, some businesses may be temporarily closed."
The main points of output in the first half of the year include:
The output of self-produced copper was 588100 tons, a decrease of 74900 tons or 11% compared with the same period last year.
Zinc production from its own resources was 550100 tons, roughly the same as in the same period in 2019, reflecting the higher grade of Canadian mines and the epidemic-related effects of Antamina and other South American operations.
Domestic nickel production was 55200 tons, unchanged from the same period last year, reflecting the strong operating period of Murrin and offsetting the delay in concentrate delivery from the Sudbury smelter to the Nikkelverk smelter.
Coal production was 58.1 million tonnes, down 10.1 million tonnes from the same period in 2019, or 15 per cent lower than a year earlier.
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