Glencore report Q1 Production
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- Production was largely in line with expectations across all commodity groups.
- Own sourced copper production of 345,400 tonnes was 21,300 tonnes higher than Q1 2017, reflecting the commissioning of phase 1 of Katanga's whole ore leach project in December 2017, partly offset by the impact of maintenance at the Mount Isa smelter and Alumbrera's expected decline as it moves towards end of mine life.
- Own sourced zinc production of 242,700 tonnes was 36,500 tonnes (13%) below Q1 2017, mainly reflecting the disposal of Rosh Pinah and Perkoa in August 2017. Adjusting for such, production was in line.
- Own sourced nickel production of 30,100 tonnes was 5,100 tonnes (21%) higher than the comparable period, reflecting the continuing stabilisation and ramp-up of Koniambo's processing plant, where both production lines are now operational, and stronger performances at Murrin and INO.
- Attributable ferrochrome production of 409,000 tonnes was 31,000 tonnes (7%) below Q1 2017, mainly reflecting furnace downtime and challenges with the subsequent restart.
- Coal production of 30.7 million tonnes was in line with Q1 2017, reflecting a stronger contribution from the Australian thermal portfolio (impacted by adverse weather in the base period), offset by weather-related reductions at Prodeco. Full year coal production guidance (unchanged) includes the largely offsetting impacts of the Hail Creek JV acquisition, expected in H2 2018, and lower production now expected from Prodeco in 2018, before returning to higher levels in 2019.
- Glencore's entitlement interest oil production of 1,156,000 barrels was 209,000 barrels (15%) lower than Q1 2017. This was in line with Q4 2017 as natural field declines in Equatorial Guinea were offset by increasing production in Chad from the drilling campaign that started in H2 2017.
- Full year 2018 Marketing EBIT expected to be within the top half of the $2.2 billion to $3.2 billion long term guidance range.
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