Glencore's first-quarter output of copper jumps 19%; marketing unit to surpass target

Glencore reported on Thursday that its first-quarter copper production increased 19% due to improved ore grades in Africa. Meanwhile, its marketing division is still on track to surpass the upper end of its annual earning guidance.

The Swiss commodities trader-miner produced 199.600 metric tons in the first quarter. This is up from 167.900 tons in the same period last year, mainly due to better grades in its African operations, and higher output at its Antamina Mine in Peru.

Cobalt output fell by 39% in the first quarter of this year as Glencore prioritized copper production at its assets in Democratic Republic of Congo due to export quotas, according to a company statement.

The demand for copper has been increasing as it is used widely in electric vehicles, power grids and charging infrastructure. Cobalt is a vital component of lithium-ion battery technology that powers EVs and consumer electronic devices.

Glencore has maintained its production guidance through 2026 despite the challenges of operational issues and the closure of the two Australian mines which have'reached the end their economic life.

Gary 'Nagle, the chief executive officer of the company, said that the Iran war did not have a major impact on the operations during the first quarter. However, higher prices for sulphuric and diesel acid were causing cost pressures.

He said that higher commodity prices would help to expand margins by more than offsetting these?pressures.

The marketing business's earnings before interest and taxes for the full year range from $2.3 billion up to $3.5 billion. Clara Denina (reporting, Louise Heavens editing)

(source: Reuters)