Glencore Maintains Trading Earnings Guidance, Despite Market Turmoil
April 30 2020 - 5:00AM
Dow Jones News
By Alistair MacDonald
Glencore PLC said it will stick to its closely watched earnings
guidance for its trading operations, saying a "volatile and complex
commodity trading environment has provided opportunities."
Glencore, a mining and commodities trading giant, said trading
is generating annualized earnings within its $2.2 billion to $3.2
billion long-term guidance range.
The coronavirus pandemic has sent commodity prices sharply lower
and closed mines around the world. But costs have also come down,
as sharply lower oil prices make fuel cheaper. The current crisis
has also boosted the price of gold, which can be a byproduct of the
mining of other metals and can help lower overall costs of mining
those other metals. Zinc unit costs, for instance, are now 39%
lower. Thermal coal costs are $3 a metric ton lower, at $42 a
metric ton, Glencore said.
The miner also said it expects a $1 billion to $1.5 billion
reduction in capital expenditure this year, compared with original
guidance of $5.5 billion.
Write to Alistair MacDonald at alistair.macdonald@wsj.com
(END) Dow Jones Newswires
April 30, 2020 05:45 ET (09:45 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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