Copper production by Glencore experiences a decline as they ponder over the possibility of abandoning their primary listing on the London Stock Exchange.
Glencore took a plunge in the first quarter, announcing a steep drop in copper production and contemplating a shift in its primary stock market listing.
On Wednesday, the mining giant reported a 30% slump in Q1 copper production to 167,900 metric tons. This somewhat concerning figure comes as Glencore mulls a move to New York as its new home for a main stock market listing. Shares of the company dipped 4.45% or 11.75p to 252.15p on the news.
Despite this rocky start, Glencore held onto its full-year forecast for 2025, predicting output to climb in future months, keeping its expectations between 850,000 to 910,000 tons. In 2024, the company managed to produce a more substantial 952,000 tons of the metal essential for electric vehicle wiring, batteries, green energy plants, and data centers.
However, global trade tensions have weighed heavily on prices of most industrial metals this year, leaving analysts optimistic about growing demand for copper, cobalt, and other transition minerals, due to the shift towards electric vehicles and renewable infrastructure.
Not all news was bleak for Glencore, as its cobalt production soared 44% in the first quarter due to higher grades and volumes at the Mutanda mine. Nickel production took a hit, decreasing by 21%. The company maintained its annual production guidance for both cobalt and nickel.
Glencore's marketing earnings before interest and tax are predicted to be in the middle of its long-term guidance of $2.2billion to $3.2billion this year, contrasting with $3.2billion in 2024. The group attributed the fluctuating commodities markets to US tariff newsflow and uncertainty.
TTalking about the potential repercussions of these tariffs, Glencore stated that some physical trade flow reorientation and dislocation might emerge over the coming months. As for its trading division, which raked in a record profit of $6.4billion in 2022, it includes coal, oil, liquefied natural gas, related products, and metals.
Analysts at RBC Capital Markets voiced their disappointment with Glencore's marketing guidance not reaching the top end of the range in these volatile times. Glencore's Q1 thermal coal production dipped 7% to 23.4 million tons from 25.2 million tons the previous year, primarily due to lower output from Australian mines.
The company is one of the leading producers and exporters of thermal coal, having mined 99.6 million tons in 2024. Glencore announced plans to trim production at its Colombia mine Cerrejon by between 5 million and 10 million tons annually starting in March.
In February, Glencore expressed a potential intention to abandon its London primary listing, which would mark another significant departure for the city's markets. Founded more than 100 years ago in the Swiss town of Zug, the company may seek a change in scenery to maximize valuation. London's markets have suffered a series of departures in recent years, with concerns over lackluster liquidity and depressed valuations contributing to the exodus.
For those interested in investing in the mining sector, we recommend comparing various platforms such as AJ Bell, Hargreaves Lansdown, interactive investor, InvestEngine, and Trading 212. These platforms offer comprehensive tools and resources to help investors make informed decisions. If you take out a product after using the links provided, This Is Money may earn a commission, but this does not affect our editorial independence.
- In 2025, Glencore, a global mining giant, has highlighted an expectation for an increase in copper production, despite a 30% slump in Q1 2023.
- The finance industry is keeping a close eye on Glencore's potential shift in primary stock market listing, with New York being a probable new home.
- The mining business is optimistic about the growing demand for industrial metals like copper, cobalt, and transition minerals, due to the shift towards electric vehicles and renewable infrastructure, despite global trade tensions affecting prices in 2023.
- For those interested in investing in the mining sector, various platforms like AJ Bell, Hargreaves Lansdown, interactive investor, InvestEngine, and Trading 212 can offer comprehensive resources to make informed decisions.
