Glencore (LSE: GLEN) shares eased 3% to 365p this morning after it reported a mixed bag of production numbers for the first half of the year.
Copper bottomed
Copper, its major profit source, saw production rise 13% to 741,000 tonnes thanks to a ramp-up at its Mutanda operation and improved production at Collahuasi. Due to the company’s production profile, higher volumes are expected in the second half of the year than the first.
Ferrochrome production was up 16%, but there was less good news when it came to zinc, down 11%, and nickel, 8% lower. Two zinc mines depleted their reserves in June 2013, and some of Glencore’s nickel operations have been placed on care and maintenance.
Energised
On the energy front, coal production was up 5%, but oil production rose 41%, due to two operations only coming on line during 2013.
Glencore also re-confirmed that the sale of its Las Bambas copper mine had been completed, which will net the company a cool $6.5 billion after tax.
All eyes now turn to Glencore’s detailed half-year results, which are due for release a week today. Like many of the major miners, Glencore releases summary production figures first, followed by full financial figures shortly afterwards.
Despite today’s share price slip, Glencore is trading at around its highest level since early 2013. Its forecast P/E and dividend yield are 17 times and 2.8% respectively.