(Kitco News) - Glencore (GLEN:LSE) upgraded its profit forecast for the currentyear and said it expects underlying profit (adjusted EBIT) to exceed itsUS$2.2bn-US$3.2bn a year long-term guidance range. The firm said its assetbase has performed in line with expectations and full-year production guidanceremains unchanged.
Glencore is the world's biggest exporter of seaborne thermal coal,which also soared to a record above $250 a tonne in September before easing toaround $200 per tonne.
In Q3, the company's own sourced copper production totalled895,500 tonnes, down 4% on the same period in 2020, reflecting lower minedgrades at various operations. Forecast copper production for 2021 is 1.22mlntonnes.
Zinc production of 855,800 tonnes was as expected the same as theyear earlier, as recovery from 2020 Coronavirus (COVID-19) restrictions wasoffset by temporarily lower Kazzinc production pending the ramp-up of therecently commissioned Zhairem mine. Glencore estimates full-year productionwill reach 1.17mln tonnes.
Nickel production decreased 13% to 71,100 tonnes due to plannedmaintenance at Murrin Murrin and various operating issues at Koniambo. Theforecast for 2021 is 105,000 tonnes.
Based on current commodity prices, analysts at JPMorgan forecastthat Glencore will record group earnings before interest, tax and depreciationof $22.5bn in 2021.
The share price has been in a great trend of late and the pricehas bounced after hitting a recent wave low of 352.70 this morning. The mainarea for the bulls to target would be 400 per share as the price failed at itslast attempt but the stronger U.S. dollar has hindered some of the momenta inthe commodities markets.
By Rajan DhallFor Kitco News
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