Investing.com — Glencore stock rose on Thursday after the world’s biggest mining company predicted another year of solid profits due to high prices for its main commodities.
The London-listed mining giant said its earnings before interest and taxes would be “comfortably” above $3.2 billion, the top end of its guidance range, the third year in a row it has been able to deliver such a result.
By 5:55 AM ET (0955 GMT), Glencore (OTC:GLNCY) stock was up 2.1% in London and is now up 31% for the year, making it the best performer among the major European-listed mining groups.
Glencore’s forecast is in some ways an illustration of the traditional preference of mining companies for price over volume. The company had to lower its production guidance for zinc, cobalt and copper, its main earnings generator, due to Covid-19 lockdowns and associated labor shortages, as well as other operational problems.
Copper production fell 14% in the quarter, while zinc production fell 15%, due largely to delays at its Zhairem operation in Kazakhstan. Glencore cut its full-year guidance for zinc output by 9%, its copper guidance by 3.5% and its cobalt guidance by 6.5%.
However, it nudged up its forecasts for nickel and ferrochrome production by just under 3% each.
Glencore is a significant player in nearly all major industrial metals except steel. The struggle of Glencore and its peers to sustain output during the pandemic has been a major contributing factor to the rallies in world metals prices in that time.
Source: Economy - investing.com
