Glencore reported a sharp decline in copper production for the first quarter of 2025, with output falling 30% year-on-year to 167,900 metric tons. The company attributed the drop to lower ore mining rates, head grades, and recoveries at key operations in Chile, Peru, and the Democratic Republic of Congo. Despite the weak start, Glencore expects copper production to recover in the second half of the year, projecting that 58% of its annual copper output will be produced after June. The company’s full-year copper production guidance remains unchanged at 850,000 to 910,000 metric tons, down from 952,000 metric tons in 2024. Glencore’s management stated that the first quarter is expected to be the lowest of the year, with a stronger performance anticipated in the coming months.
Cobalt production rose sharply, up 44% to 9,500 metric tons, driven by higher grades and volumes at the Mutanda mine in the DRC. Zinc output also increased by 4% to 213,600 metric tons, supported by improved grades at the Antamina mine in Peru and higher production from Australian operations. Lead production climbed 14% to 49,900 metric tons, while nickel output fell 21% to 18,800 metric tons. Glencore also reported lower production of precious metals, with gold down 28% to 145,000 ounces and silver down 6% to 4.23 million ounces. Ferrochrome production decreased by 7% to 277,000 metric tons. The company maintained its 2025 production targets for all major metals except for a 5% reduction in energy coal, reflecting a decision to cut volumes at the Cerrejón mine in Colombia.
Glencore’s trading division expects adjusted EBIT for 2025 to be in the middle of its long-term target range of $2.2 billion to $3.2 billion. The company noted that the market environment remains uncertain, with volatility heightened by new U.S. tariff announcements and concerns about global economic growth. Glencore said it is prioritizing risk management as it navigates complex supply chains across the U.S., China, Europe, and Canada. Although global trade flows have not been significantly disrupted so far, the company anticipates that current and planned tariffs could lead to regional shifts in physical commodity trading, potentially creating new opportunities for its trading business. Glencore emphasized that its operational guidance for 2025 remains intact, with stronger output expected later in the year.
