Glencore reports 5% drop in nickel output in H1CY'24; expects recovery in H2

Glencore has announced a 5% reduction in its nickel output in the the first half of 2024. The company recorded decreased production across most of its key sectors, including copper and zinc, with lead being the notable exception, showing a modest increase.

Nickel

Glencore's nickel production fell by 2,200 tonnes (t) or 5% to 44,200 t in H1 2024 compared to the same period last year. This decrease is largely attributed to Koniambo's transition to care and maintenance in February which reduced output by approximately 7,700 t. This transition is expected to lead to an adjusted EBITDA loss of around $100 million for H1. Excluding Koniambo, nickel production was up by 5,500 t, or 16%, compared to H1 2023.

Copper

After adjusting for the 15,000 t of Cobar sold in June 2023, Glencore's own-sourced copper production stood at 462,600 t, reflecting a 2% decline from H1 2023.

Zinc, lead

Zinc production totalled 417,200 t, a 4% decrease from H1 2023, primarily due to reduced output from Antamina. However, this was partially offset by a 5% increase in production from other sources, notably the ramp-up at Zhairem. Lead production saw a slight increase of 1%, reaching 87,900 t.

Outlook

Glencore anticipates higher production levels in the second half of 2024, including African Copper (+30,000 t) due to recovery from a mill outage and improved ore grades, Antapaccay (+8,000 t) recovering from a geotechnical issue, Kazzinc (+60,000 t) with continued ramp-up at Zhairem, and Murrin Murrin (+3,000 t), reflecting its annual shutdown timing in April.