Glencore (GLEN.L) announced lower first-quarter copper, zinc, and nickel production on Friday but said its trading segment would exceed yearly guidance.
The miner and dealer, exploring a takeover proposal for Canada’s Teck Resources (TECKb.TO), maintained its 2023 copper guidance at 1.04 million tonnes, even as first-quarter production declined 5% to 244,100 tonnes due to lower grades and delays at some mines.
Glencore mines thermal coal to create electricity and has a trading sector that sells oil, LNG, and associated products. In 2022, it made $6.4 billion, up 73% from the year before.
It now expects 2023 marketing EBIT to reach the high end of its yearly range between $2.2 billion and $3.2 billion.
Teck’s board rejected Glencore’s $22.5 billion takeover bid last month because it exposed shareholders to thermal coal and energy trading. The offer envisaged spinning out thermal and steelmaking coal businesses and renaming GlenTeck.
Teck’s all-share offer coincided with its April 26 vote to spin off its metallurgical coal division and focus on copper and zinc.
