Weather events impact Glencore's Q1

A string of weather-related events impacted the operations of global commodities giant Glencore in the first quarter, including flooding in Peru, a cyclone in Australia and increased rainfall in the DRC.

Copper output from Glencore's own mines was down 3% to 324,100t in the first three months, reflecting grade variations at Alumbrera in Argentina, the zinc/copper mix at the Antamina JV in Peru and difficulties at its Mutanda mine in Africa.

The group's 37.5% share from Antamina fell 18% in Q1 to 30,300t of copper in concentrates, while its 44% of Collahuasi – a JV with Anglo American in northern Chile – contributed 57,600t of copper in concentrates, up 15% a year earlier.

The Switzerland-based company said Antamina "is currently accessing and processing more zinc/copper ore and less copper-only ores." Additionally, flooding in northern Peru during the first quarter forced the temporary closure of the concentrates pipeline.

Other South American copper assets – which include Chile's Lomas Bayas (pictured) and Punitaqui, Peru's Antapaccay and Alumbrera – saw production falling 15%, with output of copper in concentrates reaching 59,400t in Q1 from 70,000t a year earlier.

ZINC, LEAD, NICKEL

The company's global zinc production in the first quarter grew 9% year-on-year to 279,200t. Lead production was 3% lower at 68,900t, while nickel output fell 10% to 24,900t.

Glencore's lead and zinc production in Latin America comes from Sinchi Wayra in Bolivia, AR Zinc in Argentina and the 97%-owned Los Quenuales operation in Peru, as well as Antamina. Combined output of zinc in concentrates was up 14% to 56,000t in Q1, while production of lead in concentrates was up 36% to 12,200t. Antamina's zinc output was up 74%, contributing 24,500t in the quarter.

The company said that the growth in zinc output from its South American operations was mainly due to a strike that took place in Bolivia last year. Operations at Los Quenuales, also known as Iscaycruz, remain suspended.

GOLD, SILVER

Company-wide gold production totaled 259,000oz for the first quarter compared with 215,000oz in 1Q16. Silver production was up 3% to 9.3Moz.

In Peru, the group's silver in concentrates contribution from Antamina fell 26% to 1.45Moz, while in Chile silver output from Collahuasi was flat at 774,000oz.

Gold production at Glencore's other South American mining assets fell 7% year-on-year to 82,000oz in 1Q17, while silver output was down 11% to 463,000oz.

COAL

Glencore's coal output was 30.9Mt in the first quarter, up from 29.7Mt in the same period of 2016.

In Colombia, its Prodeco operation produced 4.2Mt of thermal coal, down 2%, while its 33.3% of Cerrejón brought in 2.8Mt of thermal coal, up 8% from 1Q16.

Glencore kept its full year guidance of 1.355Mt for copper production, with zinc output at 1.19Mt, lead at 300,000t, nickel at 120,000t, ferrochrome at 1.65Mt and coal at 135Mt.