Glencore Fourth-Quarter Copper Output Increases 32%Jesse Riseborough
Glencore Xstrata Plc, the mining and trading company created in a $29 billion deal last year, increased copper production by 32 percent in the fourth-quarter.
Output from its own mines was 425,800 metric tons in the three months ended Dec. 31, up from 322,000 tons a year earlier, Baar, Switzerland-based Glencore said today in a statement.
Glencore Chief Executive Officer Ivan Glasenberg, the biggest shareholder in the company, is boosting production and adding mines at a time when his peers are selling operations. HSBC Holdings Plc analysts last month estimated Glencore would double net income in the next two years, helped by relatively cheap expansions and lower costs. Copper and coal sales are the biggest contributors to profit.
The biggest exporter of power station coal has interests in more than 35 coal mines in Colombia, Africa and Australia, making up about 10 percent of global seaborne supply.
Total coal output rose 1 percent to 33.5 million tons in the quarter. Zinc production fell 16 percent to 336,800 tons, lead dropped 1 percent to 81,100 tons and nickel declined 18 percent to 22,800 tons.
Glencore slid 0.2 percent to close at 326.05 pence in London yesterday. The stock has risen 4.3 percent this year.
Peter Grauer, the chairman of Bloomberg LP, the parent of Bloomberg News, is a non-executive director of Glencore Xstrata.