Glencore Xstrata Second-Quarter Copper Production Gains 22%
Stock Chart for Glencore Xstrata PLC (GLEN)
Glencore Xstrata Plc (GLEN), the mining company created in a $29 billion deal three months ago, said second-quarter copper output increased 22 percent after it boosted production from mines in Africa.
Output was 351,600 metric tons in the three months ended June, Baar, Switzerland-based Glencore said today in an e-mailed statement. The figures include operations acquired from Xstrata Plc. Output of zinc in the period fell 6.4 percent from a year ago, lead dropped 18 percent and nickel declined 0.3 percent.
Glencore completed a 15-month takeover of Xstrata in May to create the fourth-largest mining company with a market value of $63 billion. Copper and coal sales are the biggest contributor to earnings. The group has interests in about 35 coal mines in Colombia, Africa and Australia, accounting for about 10 percent of global seaborne supplies of the fuel.
Total coal output rose 5.1 percent to 34.8 million tons. Copper output from mines in the Democratic Republic of Congo, Katanga and Mutanda, increased as part of a planned expansion, Glencore said.
“Performances of key assets against our expectations were broadly in line,” Liberum Capital Ltd. analyst Ash Lazenby wrote today in a note. Shares are expected to trade “broadly in-line today,” he said.
The stock fell 1.4 percent to 303.25 pence by 8:24 a.m. in London trading. It’s down 13 percent this year. The company is scheduled to report first-half earnings on Aug. 20.
Spending on new projects is estimated at $29 billion in the next three years, Glencore said in May. After 2015 it’s set to “materially decline” to $4 billion to $5 billion.
The group employs about 190,000 people in more than 50 countries across its industrial and trading divisions. The takeover of Xstrata was completed almost two years after Glencore’s $10 billion initial public offering that ended more than three decades of it operating as a closely held company.
Peter Grauer, the chairman of Bloomberg LP, the parent of Bloomberg News, is a non-executive director of Glencore Xstrata.
To contact the reporter on this story: Jesse Riseborough in London at email@example.com
To contact the editor responsible for this story: Amanda Jordan at firstname.lastname@example.org
Bloomberg reserves the right to edit or remove comments but is under no obligation to do so, or to explain individual moderation decisions.