Commodity trader and miner Glencore on Monday cut its nickel production guidance for this year due to maintenance and strikes but reiterated its expectation that profits from its trading division would be $3.5-$4.0 billion, above its long-term guidance range.
Glencore (GLEN.L) maintained its overall 2023 guidance for copper, zinc, coal and cobalt output.
Its trading division includes coal, oil, liquefied natural gas and related products, as well as metals, whose profit hit a record $6.4 billion in 2022, up 73% from the previous year.
The London-listed miner’s long-term yearly trading guidance earnings is for a number between $2.2 billion and $3.2 billion.
Glencore, which in June offered to buy Teck’s steelmaking coal business as a standalone unit, having been rebuffed twice in its $22.5 billon bid to combine the two companies, lowered its guidance for full-year nickel production by 9% to around 102,000 metric tons.
“Nickel has been reduced to reflect … maintenance outages at the Sudbury smelter and a longer than expected recovery from 2022 strike action, together with a lower full-year revision for Koniambo,” Glencore said in a statement.
Glencore’s own sourced nickel output was down 16% at 68,400 tons in the first three quarters of the year, while its own sourced copper production of 735,800 metric tons fell 5%.
Copper, nickel and cobalt are key materials for electric vehicles, a key plank of the energy transition.