Glencore’s copper output to suffer due to African production troubles
Mining giant Glencore is expected to announce adjusted earnings before interest, tax, depreciation and amortisation (ebitda) of $3.07bn (£2.47bn) for 2016 on Thursday when it reveals its full-year results.
In a production report released earlier this month, the FTSE 100 company said it expected ebitda for 2017 to stand at $14bn. According to forecasts by Vuma Consensus, Glencore saw lower production from most commodities during 2016.
The mining giant said copper output for the year ended 31 December fell five per cent to 1.4m tonnes due to suspended production at Glencore’s African operations. While zinc production was 24 per cent lower at 1.1m tonnes, nickel production increased 20 per cent to 115,100 tonnes and coal production fell five per cent to 124,900 tonnes.
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Glencore's share of oil production was 7.5m barrels, 29 per cent lower than the same period last year.
Last week, Glencore bought up the remaining stake in Fleurette's Mutanda mine in the Democratic Republic of Congo and increased its stake in Katanga Mining Limited for a total $960m (£766m).
The assets are key sites for the production of copper and cobalt, two commodities which are performing particularly strongly due to the global demand for electricals.
Glencore now owns 100 per cent of the Mutanda mine and holds roughly 86 per cent of Katanga Mining Limited.