Glencore Beats Production Estimates but Trims Coal Guidance

JOHANNESBURG, Oct 30 Reuters Glencore reported stronger thirdquarter production but its shares fell after it lowered its 2020 coal production guidance by 5.7 as a strike at the Cerrejon mine in Colombia entered its 60th day on Friday.

Cerrejon, owned equally by Glencore, BHP Group and Anglo American, has been in negotiations with its largest union and on Wednesday said that significant advances had been made.

With Glencores yeartodate coal production down 20 at 83.5 million tonnes, partly owing to the Cerrejon strike, the company downgraded its fullyear output guidance to 109 million tonnes from 114 million tonnes.

Glencores Londonlisted shares were down 2.4 by 0804 GMT.

The group maintained its 2020 guidance for all other products.

Copper production was up 17.6 from the previous quarter at 347,000 tonnes, partly because of an end to coronavirusrelated mine shutdowns in various countries.

Glencore has bettered our estimates in Q3, a trend we have been generally seeing as companies recover from COVID19 impacts from Q2, RBC analysts said.

Yeartodate copper production was 934,700 tonnes, 8 lower than a year earlier, while cobalt output was down 37 at 21,600 tonnes owing to the shuttering of its Mutanda mine in the Democratic Republic of Congo DRC.

Glencore subsidiary Katanga Minings Kamoto Copper Company mine in DRC is ramping up to full production and should produce 270,000 tonnes of copper as cathode this year, head of Africa copper Mark Davis said last month….

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